Spectacular cash flow…Rural Airbnbs

What’s up guys in today’s video I want to talk about rural Airbnb or short term rental properties and the spectacular cashflow, as well as some of the other pros and some of their cons as well of investing in these types of properties. Now, I tend to talk a fair bit about these types of properties, because I personally just have a bit of a sweet spot for them, I really liked them, they fit really, really well with my overall investing goals. And so I tend to really lean towards more rural vacation kind of cottage staycation type properties for short term rental. That being said, there are still lots of different property types that perform really well. There are ones in suburbs and vacation rental markets, they’re ones in downtown urban areas of care towards more business travellers, more tourists travelling internationally, all these different types of properties that can all perform really, really well. And I’ve helped and worked with investors that work on all these different property types. And depending on your unique situation, your unique goals with your own investing portfolio, and just your lifestyle goals for your portfolio that you may or may not have, there might be a better fit for you in these rural properties. For me, personally, for my goals for my lifestyle objectives, I really, really liked these properties. So I want to talk to you about some of the reasons that they tend to have really great returns, and some of the other pros and cons of these types of properties for short term rental. So let’s jump into it. And I just want to start off first by talking a little bit about why these types of properties tend to have really great return on investment. And it tends to be pretty easy to find great deals in these types of markets. Number one reason is because there just isn’t as much competition from other types of homebuyers. So if you think about it, there’s a whole bunch of reasons that a person might buy any given home any given property, it could be to live in as their primary residence, it could be to rent it out long term, it could be to rent it out short term, it could be because it’s a big institutional fund that’s buying a big apartment building something like that. It could be a large scale investors small scale investor out adding it to their portfolio, or it could of course be to use as a short term rental. Now, when you’re buying properties in a more rural area, be it a mountain area, a beach area, it’s more rural or just like a kind of lakefront area, cottage country, near ski hill, something like that, you tend to have less competition, because there’s generally a few less of those buyer pools, there’s generally just people that are either looking for their primary home, or people that are looking to buy it as a short term rental property, you don’t tend to see really great returns in some of these areas as a long term rental, or as a mid term rental. And so you just don’t get the same level of competition. You also don’t generally tend to see this like hyperinflation or hyper appreciation, I should say, that you see in some of the bigger metro areas. So for example, in Toronto, people are buying purely for the appreciation on a property, because historically, it’s been astronomical in downtown Toronto. And so if you try to buy a property there, it almost never cash flows, it almost never actually pencils out the properties are valued at so much more than they’re really worth. Because there’s so many people that just want to buy them to either live there or to use just to invest in for the appreciation for appreciation sake. And so it’s just generally a little bit easier to invest in markets where there isn’t that kind of mania around investing in them and still get really good cash flow as cashflow focused investors, that’s generally where we want to lean is to markets that have better cash flow and less urban areas tend to generally have a bit better cash flow. Again, I’m trying not to make blanket statements, because I’m not saying that you can’t invest in New York and LA or Toronto and still get really, really great returns as a short term rental and get great cash flow, it is possible, it’s just not quite as easy in my experience. The other thing that’s really great about these properties is that they can often command really high nightly rates because you’re buying a larger property. Generally speaking, you’re not going to buy some shoebox little condo, you’re generally going to buy a multi bedroom, single family home. And you can add really cool amenities, these properties a lot of the time that up the value of the property to prospective guests things like a little movie theatre setup, or a hot tub, or a sauna, maybe even like a geodesic dome in the backyard, things like that, that you can do to the property, you can often command a really high nightly rate and get these crazy nightly rates and still get good occupancy if you’re investing in the right areas, so that you actually get really, really great return. So that’s some of the really just basic kind of high level explanation of why some of these properties tend to perform really well. I also want to go over some other pros and then also some cons some downside to be aware of of investing in these types of properties. So for starters, some of the other pros, I really, really like having fewer neighbours, that is one of the great things about investing in more rural areas is being able to separate yourself from other people because having neighbours that complain about your short term rental property is a nightmare. It’s just annoying to deal with. You never want to get yourself in that situation because it’s also just sucks for the neighbours if they’re inconvenienced by it, but it’s also just it really sucks for you because you have to deal with it. And so being able to buy a property where you’ve got a decent amount of separation, your neighbour isn’t literally right beside you, that’s super, super nice. And generally you only have two neighbours to worry about, you don’t have like 16 neighbours within a couple of feet of your property, if you’re like you would if you’re in a more densely populated urban area. And so I just think that’s really phenomenal, there’s a really big benefit to that the properties we have the neighbours just generally don’t cause any kind of a fuss or an issue, we make sure to be respectful towards them, they’re respectful towards us. And then it’s just one less thing to have to deal with have to have that headache. So I personally really, really like that as an advantage as a benefit. The other thing that I really like about this is that lifestyle wise, for me, personally, it’s really nice to Pro to be able to go and actually travel these places and get out of the city. As someone who lives in the city myself, I like to vacation and get outside the city. So it’s really nice that way. And another big advantage for me is just that they’re cool. I just really like it, I like being able to create this cool, unique experience. Whereas if you buy a business travel, catered listing, that’s like a one bedroom or studio apartment in a downtown urban area, you just don’t have as much creativity that you can add to it, there’s not really that much more that people are looking for, I think it’s really, really cool to be able to have an investment vehicle that has a sauna and a hot tub and a movie room. And then I get creative with there also just tends to be a lot more price elasticity with these types of things. Because there’s less competition, the more unique you make the property, the more you can actually set yourself apart and not just be another one bedroom condo in the city, you’re in this really, really cool three, four or five bedroom property out in the country, or in the mountains or by the lakes or whatever it is. And that can really set you apart give you a lot more price elasticity. And it’s just, it’s really, really fun I find so those are some of the big pros for me. There are also obviously cons to be aware of as well. Some of the cons Oh, one actually other pro that I forgot to mention is the lack of restrictions from the building from the HOA, you generally don’t have to deal with that kind of stuff. And some of these more rural areas tend to be more more favourable in their in their laws and regulations around short term rentals. So that’s another big benefit there. Guys just want to take a quick break here to say that for those of you watching, who want to build cashflow, and long term wealth by purchasing Airbnbs and short term rental properties, there’s a link in the description right down below for a free training that will walk you through my exact strategy for investing successfully in Airbnb ease. Now, if you’re not ready to actually buy properties, and you want to get started managing other people’s properties on Airbnb the same way I got started and build a full time income managing other people’s properties. There’s actually another free training linked in the description down below as well, that will be a really great fit for you. So whether you want to invest in short term rental properties and actually build amazing cash flow and long term wealth by acquiring the assets, buying the properties themselves, or you’re looking to earn a full time income managing other people’s properties on Airbnb, we’ve got some awesome trainings that are linked in the description down below, that will definitely help you out. When you sign up for the trainings, we’re also going to send you a few other tools and resources completely for free just to help you get started. Again, the links to sign up are in the description down below. And both trainings and all the tools are completely free. So make sure to register for the trainings, links in the description down below. Now some of the cons that come along with it is that when you’re in an urban area, this is probably the biggest con overall is it is trickier to find good, reliable help, not impossible. There are actually some strategies that we used to find really, really great people. So we’ve taken that con and we found a really great solution to it. But without a great solution. It is just objectively more difficult to find a really great cleaning person, really great reliable maintenance people when you’re in a more rural area, because there’s just not as many service providers nearby. And it’s longer travel distances revealed to get to the property. If you’re in a densely populated urban area, there’s probably like 17 different cleaning companies you can choose from within a two kilometre radius. Whereas if you’re out in the country, or in a more rural area, it’s generally not going to be the same situation, you’re going to have a harder time finding cleaning companies finding maintenance people. And it’s just going to be generally less accessible to get to your property. You may also run into issues with guests having a hard time finding your property or having issues getting to it. If you’re in a more isolated area where it’s like unplowed roads, sometimes some issues like that, right. If you’re in a downtown metro area, getting into the property, getting yourself in there, you know, navigating, it’s generally going to be a lot easier. So you don’t have to deal with those kinds of issues from guests. So these are admittedly kind of small cons in my opinion. If you don’t have good solutions to them, they can become massive. Imagine not having a good cleaning team for your for short term rental, your whole business would be done for if you didn’t have a good cleaning company or if you didn’t have a good maintenance person. That being said, they do tend to be very solvable problem. So we’ve found different strategies that we use to be able to consistently find a really great cleaners and a really great maintenance people and make sure that our guests have no issues accessing our property having a great time there. So as long as you have the right systems working and make sure that those systems get maintained that they’re operating well, they shouldn’t really run into those issues. So there are certain cons but they are pretty easy in my experience to overcome. So those are my thoughts again, as always, I want to know yours let me know in the comment section down below if you have any questions, thoughts, comments, anything you want to share with me also, as always, if you did like this video got value from it if you just found it helpful, valuable fun to watch anything if you’re still here even really just hit the like button. It really really does help me out tremendously. It means a lot to me if you hit that like button helps me massively with getting these videos in front of more people and helping more people with their short term rental investing, so make sure that you hit that like button down below the video. And last but not least, make sure you hit the subscribe button so you can stay up to date with a tutor videos you post every single week on this channel here. Just make sure you subscribe and I’ll see you in the next video.