why airbnb 1 of your rental units in a 4 plex?
Then probably depending on how you feel about it, it's more automated. You're using the Airbnb platform. You can install digital locks that the codes change or don't change however you want it, and then using platforms like guesty.com that automates cleaning, scheduling a handyman, and connecting your Airbnb listing to other platforms as well if you want to use VRBO or whatnot.
where to invest in airbnb units
Multifamily versus, single family, versus condos
How to differentiate your short term rental from others: we try and create an experience, not just an address!
Number two in that category probably is unique furnishings, books, local art. We actually have photos in our unit from one of my really successful photographer friends that works for National Geographic. She did an expose on San Diego, and we took some of those photos and included them in our art in our unit. It's really cool and amazing and inspires people to go see more of the cool things that are here to do in San Diego. Then obviously, just giving advice or information on what's fun to do in the local area, especially considering we have bikes and whatnot, biking to local breweries or restaurants.
Then probably third is landscaping, outdoor amenities, Jacuzzi, pool, yard games. Again, anything other than a standard listing where people have nice furnishings and it's a nice condo. But if you have a beautifully manicured lawn, and landscaping, and trees, and Adirondack chairs, and yard games to play, that makes it a unique experiential place to rent and it's going to help you boost up your cash flows and occupancy.
our san diego 4 plex finances example with 1 short term airbnb rental now.
In this example, we spent about $1.4 million to build the fourplex. That mortgage is right around $6,800 a month. To make the math easy, we have two long-term rentals in the community, one's a two-bedroom, one-bath that we're running for $2,200 a month. And the other is a two-bedroom, two-bath with a 350 square foot private deck for $2,400.
This is San Diego. These rents are well below market rate currently. We could probably be charging an extra $300 or $400 a month. But that's part of the beauty, as you'll see in this.
After rent, we owe about $2,200 with the long-term rentals left on our mortgage. Then our short-term rental is bringing in no less than $2,900 to $4,000 plus per month, especially during the summer. You can see that the cash flow is anywhere from $700 a month to $1,800 a month. We're living in the building in one of the biggest units, so we're living for free. So that's pretty amazing.
The extraordinary benefits, I think, of doing it in a fourplex situation, especially where more affordable housing is needed, is you can increase your profits by turning one of the units into an Airbnb. It allows you to rent the long-term to long-term tenants at an affordable rate or below market like we are and provide much-needed affordable housing which is cool and helps your fellow man.
In our scenario, my wife can work less because she's a nurse, so she works two days a week and can stay home with our small children more, which she's excited about and it's not stressful. Then ultimately, we still live mortgage-free in this building and this can be replicated in other places. We're now saving money to either do a fourplex or some sort of an adventure ranch in either Lake Tahoe, my hometown of Bass Lake, or Mammoth Lakes near Mammoth Mountain ski resort. All these places need more rental housing, more affordable rental housing, new or nicer rental housing.
I believe this strategy with Airbnb Investing can allow us to still generate the cash flows that we need to continue to build and save and build more buildings but also afford us to be generous and give affordable housing back to the market where it's needed most.
Anyways, that's my strategy. I hope you liked it. We're looking to grow. We're looking to collaborate. If you're interested in any of this, I'd be happy to talk you through it a little bit more specifically, or if you're interested in some of our future products, please reach out to me. I can be reached at 619-885-8188 or jeremy@sustainablevillageredevelopment. I hope you like this and make it a great week. Talk to you soon.