Cheap Airbnb’s are better. 
Summary
TLDRThis video script offers practical advice for succeeding in the Airbnb industry with limited funds. Sean Rocky G, an experienced host with 150 properties, introduces 'rental arbitrage' and shares tips on securing free rent, furnishing efficiently, and staging properties to attract guests. He emphasizes the importance of treating it as a service business, focusing on customer service for five-star reviews, and tailoring the property to the local market and guest needs.
Takeaways
- 💡 You can start an Airbnb business with very little money by buying cheap properties and furniture.
- 🔑 The success in the Airbnb industry is more about providing a service rather than selling a product.
- 🏠 Sean Rocky G, with experience in 150 properties, specializes in 'rental arbitrage' which allows operating on a budget.
- 📈 B-class properties can be a good starting point due to less management and potentially more negotiation room for free rent.
- 💰 Getting free rent is crucial for cash flow and can significantly reduce the initial investment in a property.
- 🛋️ Starting with smaller units like studios can reduce furnishing costs and make the property more appealing with less effort.
- 🎨 Using accent walls and strategic design can make a property look more expensive and appealing on a budget.
- 🌿 Investing in basic furniture and staging props that can be reused across multiple properties can save on costs.
- 📸 Templating, or using a single design for multiple units, can reduce photography and editing expenses.
- 💡 Addressing lighting issues with strategic design and wall colors can overcome limitations of B-class properties.
- 🤝 Treating the business as service-based and focusing on customer service can lead to better reviews and occupancy rates.
Q & A
What is the main point Sean Rocky G is trying to convey about Airbnb in the video?
-Sean Rocky G emphasizes that Airbnb is a service-based business rather than a product-based one, and success can be achieved even with limited initial capital by focusing on providing a good service and managing properties effectively.
What is 'rental arbitrage' as mentioned by Sean in the video?
-Rental arbitrage is a strategy where one rents out properties that they do not own on platforms like Airbnb, profiting from the difference between the rental cost and the revenue generated from short-term guests.
Why might a landlord be more willing to offer free rent for a B-class property?
-A landlord might offer free rent for a B-class property because it is often less managed and may have more empty spaces. The landlord is more willing to accommodate tenants to fill the vacancies and improve occupancy rates.
What are the advantages of targeting B-class properties for Airbnb rentals?
-B-class properties may offer advantages such as less competition for tenants, the possibility of negotiating free rent, and the opportunity to upgrade the property's class through renovations, thus increasing its appeal and rental income.
What is the significance of choosing a studio apartment over a one-bedroom for a low-cost Airbnb setup?
-A studio apartment is generally cheaper to furnish and maintain due to its smaller size. It requires less decor and can be made appealing with fewer furnishings, thus reducing initial costs.
How can a smaller square footage property save costs in furnishing and decorating?
-A smaller property requires fewer items to furnish and decorate, such as needing a smaller dining table or fewer pieces of wall decor. This can significantly reduce the overall cost of setting up the rental space.
What is the benefit of focusing on properties with amenities like a pool or gym?
-Properties with amenities are more attractive to guests and can command higher rental rates. They also perform well on Airbnb's search algorithm, increasing visibility and booking potential.
Why is it recommended to start with the basics when furnishing multiple properties on a budget?
-Starting with the basics allows you to spread the cost of additional decor, such as mirrors and plants, across multiple properties. This approach saves money and provides flexibility to adjust the decor as needed for each property's unique features.
What is 'templating' in the context of setting up Airbnb properties?
-Templating refers to using a single design or set of photos that can represent multiple similar properties. This method saves on the costs and time associated with unique photography and editing for each property.
How can the use of dark wall colors help with poor lighting in a property?
-Dark wall colors can make a space feel more intentional and comfortable despite poor lighting. They allow for more flexibility with shadows and exposure in photos, enhancing the appeal of the space.
What is the importance of treating Airbnb as a service-based business rather than just focusing on the property itself?
-Treating Airbnb as a service-based business means focusing on guest experience and satisfaction. This approach can lead to better reviews and higher occupancy rates, as guests appreciate the personalized service and attention to their needs.
Outlines
🏠 Starting Airbnb with Limited Funds
Sean Rocky G, an experienced Airbnb host with 150 properties across eight cities, emphasizes that success in the short-term rental industry is possible even with minimal cash. He introduces the concept of rental arbitrage and shares tips for starting with a low-cost property. Sean explains that B-class properties, often poorly managed, can offer opportunities for free rent and partnership with landlords. He advises on the importance of appealing property presentation on a budget, choosing the right furniture, and negotiating with property owners for better terms.
🛋️ Furnishing and Staging Properties on a Budget
The video script discusses strategies for furnishing and staging properties affordably. Sean suggests starting with smaller units like studios to reduce furnishing costs and recommends using accent walls and creative lighting to enhance the appeal of the space. He also touches on the benefits of choosing B-class properties with amenities like pools and gyms to attract larger groups. Sean introduces the concept of 'templating' for property design, using a single set of photos for multiple listings to save on costs. Additionally, he advises on the use of staging props and the importance of professional-looking photos to attract bookings.
🎨 Designing for Photos and Guest Experience
Sean highlights the importance of creating a design that not only looks good in photos but also serves the guests well. He discusses the use of dark wall colors to complement neutral furniture and suggests incorporating pops of color for visual interest. Sean also emphasizes the value of good design basics, such as using vintage books, fake plants, and black items to create a cohesive look. He advises on the practicality of the design for guests, ensuring that the property meets their needs for longer stays, such as having a fully stocked kitchen and providing a good dining experience.
🤝 Service-Based Business and Customer Connection
In the final paragraph, Sean stresses that Airbnb is a service-based business, not just a product-based one. He advises hosts to connect with their guests, offering a personalized service that goes beyond the physical accommodation. Sean suggests that by treating guests well and ensuring a positive experience, hosts can secure five-star reviews, which are crucial for high occupancy rates. He also discusses the importance of understanding the target customer and tailoring the property's design and amenities to meet their expectations, whether they are looking for a short-term stay or an extended one.
Mindmap
Keywords
💡Airbnb
💡Rental Arbitrage
💡B-Class Property
💡Free Rent
💡Staging
💡Accommodations
💡Decor
💡Service-Based Business
💡Customer Service
💡Photography
💡Design Basics
Highlights
Starting an Airbnb business with little money is possible through strategic property and furniture choices.
The key to success in the short-term rental industry is treating it as a service-based business, not a product-based one.
Sean Rocky G shares his expertise of managing 150 properties across eight cities, focusing on rental arbitrage.
Tips for a low-cost property include targeting B-class properties that are not well-managed for better negotiation opportunities.
Free rent can be a crucial aspect of starting with low cash, as it reduces initial investment costs.
B-class properties may offer more flexibility and partnership potential with landlords for new entrants to the market.
Starting with a studio apartment can be more cost-effective due to lower furnishing and maintenance costs.
Choosing the right property size and layout can significantly impact furnishing costs and rental appeal.
Diversifying property types, such as three-bedroom apartments, can cater to larger groups and leverage community amenities.
Strategically furnishing properties with basic essentials and reusing staging props across listings can save costs.
The concept of 'templating' in property design can reduce costs on photography and create a consistent brand image.
Addressing lighting issues in B-class properties through design choices can enhance the appeal of the property listing.
Repurposing free or discounted furniture can be a thrifty way to furnish properties while maintaining quality.
Design basics such as accent walls, pops of color, and strategic decor placement can elevate property appeal on a budget.
The importance of customer service in ensuring positive reviews and maintaining high occupancy rates.
Tailoring the property's design and amenities to the specific needs of the target customer base, such as hospital staff or tourists.
The significance of location in determining the type of customer and the design approach for the property.
Creating a connection with guests and offering concierge-like services can lead to higher ratings and better reviews.
Transcripts
hot take you can have very little money
and make money on Airbnb you can start a
cheap property buying cheap furniture
not having much cash in your pocket and
you can still be successful in this
industry everybody that you see on the
internet screaming that they're losing
money just did it the wrong way and in
this video we're gonna get to the truth
which is that this is a service based
business and not a product based
business which is great for you if you
really care about starting something and
you plan on doing a good job right if
you plan on doing well even if you don't
have much cash in your pocket you can
succeed in the short-term industry my
name is Sean Rocky G sure I have about
150 properties eight different cities
and one of my specialties is doing
Airbnb with properties that you don't
have to own it's called rental Arbitrage
and that is really the secret path to
doing this on the cheap let me give you
some tips for your first low-cost
property let's go Welcome Back YouTube
world you know surprisingly enough I'm
actually in a cheap property as I'm
shooting this video we just executed a
deal with a building that was probably a
C-Class property and a multi-family
Syndicate bought it and they're
renovating and they're putting granite
countertops in you know they're putting
new laminate flooring like stuff to make
the place more pretty and so now it's
like a b-class property and our rents
are under 1300 a month for our rents
here and this is Houston and so in this
space under 1300 a month is not a nice
property if you wanted a nice property
you'd be looking at Seventeen hundred
dollars a month in rent 1800 a month in
rent stuff like that sometimes people
are paying twenty one hundred dollars a
month in rent for a single one bedroom
property that's on Airbnb and you know
it could even go higher from there but
the point here is is that you could have
a price competitive product and if you
do it in a Thrifty way you can still
have it look appealing and I want to
give you advice for that appeal side for
making a property that will perform even
though you spent thousands less than
your competitor your nightly rate is
going to be tens of dollars less than
your competitor as well so it all comes
out in the wash so let me tell you about
how we do it Thrifty first thing you
should know is that with b-class
properties they tend to not be managed
well and because they're not managed
well there's going to be a pro and a con
here
um one of the pros of this is that the
landlord will have less occupants and
he'll have more empty space so he's more
willing to say yes to you he's also more
willing to give you free rent because he
just needs some people least up and if
somebody's under 85 occupancy for their
property it's less likely that they're
going to get that thing filled inside of
four months you know if they haven't
done a good job already so asking them
for a couple months of rent for free is
going to really be no skin off their
back right because they're like bird in
the hands or two in a bush so you're
going to be able to get free rent which
is an important part of this it could
cost you five or six thousand dollars
per door that you stage but if you can
get three thousand or four thousand
dollars of free rent now your actual
total launch costs as long as you
generated revenue for the two or three
months will be more like three thousand
two thousand dollars of actual cost per
door this is a big deal free rent will
be the key to recuperating your cash
invested you're still gonna have to have
to cash out of pocket but you can work
out deals for that too in this economy
I'm gonna tell you about how to do that
here in a second but still with the cash
invested you can recuperate the cash
inside of four or five months and you
can do it all over again now the cons of
a property that is poorly managed is the
main inside which means that when you go
walk properties that are b class or C
Class properties you're looking for
Diamonds in the Rough where you can tell
the management really cares about what
they're trying to pull off they just
need a little help if you find a slum
Lord somebody who's like really evasive
to doing like maintenance and you see
like there's maintenance issues across
the property I would ask pointed
questions about how they fix this or you
know who's the maintenance person on
site try to get a hold of that means
person and talk to them about how work
orders are handled you want to make sure
that you're not walking into a property
where the landlord will just forget that
you exist once he gets your rent check
this really is a partnership and you
need to treat it that way landlords that
buy b-class Properties or C-Class
properties tend to be more Scrappy so
they're more likely to see this as a
partnership which will be good for your
future endeavors picking up more doors
more buildings as they grow their
portfolio this can be an opportunity for
you to also grow your portfolio with the
same single landlord and another tip if
you're short on cash and you're trying
to launch your first property go with
this studio instead of a one bedroom and
go with maybe something that's like 450
to 500 square feet as opposed to
something that's like 800 square feet
because the studio will cost about a
thousand dollars less to furnish just
because that wall is not there you don't
have to worry about the Decor on either
side you might even need to do less
painting Now accent walls are a great
way to make your place look interesting
on very little money or very little
creativity and with the studio one
accent wall covers everything and on the
topic of square footage the more square
footage you have to fill the more Decor
you'll need to buy because in order to
make a good looking short-term rental
you don't want the place to look Barren
or unnecessarily minimalist without a
plan and so you'll have to fill your
walls or Corners your spaces and to have
a slightly smaller square footage space
it's just easier to make more happen for
less money with that instead of a six
person table a four person table or
maybe even one that only seats three
like a round one instead of having two
nightstands and a dresser and a wall of
shelves and plants and stuff like that
you might just need one night stand an
easel mirror and a couple of plants
because the less square footage of the
space this really does save you a lot of
money and will go a long way now the
other side of this from my experience my
seven years doing this you will
eventually want to diversify maybe pick
up some three bedroom or four bedroom
floor plans and you can do a great job
of picking up three bedroom floor plans
in like Garden style Apartments like
b-class apartments that have a pool has
a gym still sleeps a good amount of
people because it's a three bedroom but
the rents are going to be a little bit
cheaper and you won't have to go through
all the repairs and Renovations that a
house would need so you can service
groups of people like you can sleep nine
or ten people in a three-bedroom
apartment just fine and it will pop up
well on airbnb's search algorithm
because you'll have those amenities
you'll have an outdoor grill a pool gym
things like that so an amenitized
b-class Community is a great alternative
to a house because if you got a house
and that house has a yard in order to
perform well on Airbnb in my experience
with the single family home you have to
do a lot of work on the yard space the
yard space would be That Make It or
Break It amenity that gets people to
book your home at a good nightly rate
once you start to get more into the
luxury side of short-term rentals a good
Decked Out yard is like the one thing
that you have to have with the house
because if you have an expensive house
without an awesome yard there's just way
too many out there that have it and this
is where you will actually start to lose
your competitive Advantage so while
you're still getting your cash right
three bedroom floor plans like 1100
square foot three bedroom apartments
with pools and gyms is going to be your
move and so you'll diversify you'll do
Studios and you'll do three bedrooms and
you'll keep doing them in apartments
because they have the amenities that you
need maintenance is cheaper it's easier
to get the free rent now additionally as
you start to launch multiple properties
at the same time this is where you're
not super cash broke because you're
doing four or five doors at once but
let's say you need to stretch your cash
on four or five doors because you you
know maybe have 20 000 bucks and you're
trying to get Five Doors done for 20
grand that's a tall order isn't it well
you could just do the bed and the
headboard and the table and the TV and
the couch and stuff and you could get
the very Basics probably for a three
grand or 3 500 per door unless you use a
magic trick which I'm going to talk to
you of course in this video other things
you can do but if you did buy everything
out right new you could probably get it
done for just over three grand for all
the basics in a studio and after that
you probably spend another fifteen
hundred or two thousand dollars on what
I would call staging props now you will
eventually buy all of these staging
props for every single unit but you're
going to skate on this you're going to
get a stand-up mirror and these really
extravagant fake plants and you're gonna
get books and baskets and stuff that
fills up the photos to make the photos
more like a full-on Decked Out Airbnb
more like home and for all five
Apartments you will move a thousand
dollars worth of stuff from door to door
to door and get all those photos taken
and as you collect Revenue because
remember you should be getting free rent
on these deals anyway you get eight
weeks of rent for free as you start to
collect revenue on some of these doors
you will buy extra plans and you'll buy
extra mirrors and you'll complete the
staging of your listing with all those
little knick-knacks as you get the cash
for it but you could save six thousand
or eight thousand dollars on a launch by
not buying five x the decor only buying
one extra decor and shoving that stuff
around for your photo shoots we're
actually doing that right here because
we're doing something called templating
and let me kind of give you another
secret when you pick up 16 properties
like I'm doing with this building here
we have 16 units we're picking up we're
doing something called templating now
templating is where you buy very basic
Furniture very basic stuff and let me
show you some photos this one set of
photos will be relevant for four
separate airbnbs and then another set of
stock photos will be representative of
another three or four airbnbs as well we
take one design with a very key accent
wall color very key plant distribution
very easy to Stage layout and we take
one set of photos but we keep staging
four units and the other three we never
take photos of the other three because
they're identical so you can save money
on professional photography you can save
time on the photography you can save
time on the photo editing there's a
bunch of cost reduction here and at this
point too you get to use the props now
because we have a brown theme here and a
blue theme here for this property we
have two sets of staging props which
means we've spent double the money but
we're not cash broke like I said in your
case you might only want to go with one
actual design theme now one thing I do
want to bring up since we're on the
topic of the photos that I I just showed
you this listing has a terrible lighting
situation because it is a b-class
property there's actually no ceiling
light in the living room for this place
which means we have to buy external
lights floor lamps other stuff like that
but we haven't found any that we like
yet so we just have gone with the basic
like table side lamp kind of look for
now now we were able to offset what
could have been an obvious lighting
issue by the way that we did our design
very specifically our wall color because
we're using neutrals basic neutrals
whether they're the Grays the blues the
Browns we are choosing accent wall
colors that will allow our furniture to
feel more present in the photo make it
feel more intentional and that dark wall
color allows us a little bit more
flexibility with shadows it allows us a
little bit more freedom to run with
manipulating exposure and it just gives
the listing a little bit more
personality a little bit more texture
and it makes the darkness make sense the
fact that there's not as much light in
some of these photos it makes it easier
to make sense ends of the darkness
because the wall color is dark things
are supposed to be a little bit darker
it just makes the darkness more
comfortable and so if you are doing
mid-class properties like like the ones
that I'm talking about here cheaper ones
and you're buying neutral Furniture like
dark Grays or dark Blues consider using
a dark wall color that accents your
neutral furniture and then let Pops of
color like like really bright greens or
are like really bright yellows like
little bits of Pops of color let those
come forward in your photos to start to
give your listing that personality that
it would need to still perform well on
Airbnb you'll also notice that we have a
couple photos that are just for the sake
of making it look like somebody
professional did this we've got the
chair with the mirror and the plant and
then we get that stand-up mirror with
the plant behind it I will tell you that
that's my signature move the easel
mirror with the plant that whole thing
that's my thing anytime that we have a
blank bedroom that's just Barren and
ugly looking and we need to fix it fast
we'll get a throw blanket some nice
pillows a stand-up mirror and a really
tall plant that fans out and that alone
will flip your bedroom from look talking
like nothing to looking like this
minimalist intentionally designed this
way looks good kind of thing of course
it's not the best bedroom in the world
but again we're not doing a luxury
property we spent maybe 900 on
everything that you see in that bedroom
and that is saying something when trying
to ball out on a budget so now let's get
Thrifty let's get really really Thrifty
like I was saying you could actually not
spend money on full priced stuff and
right now this economy is one of those
economies where you could really start
to save some money there are people
legitimately just giving away their
Furniture right now just handing it off
like somebody please take my stuff I
can't afford my lease anymore my
landlord wants to be gone I don't have
time to sell the furniture and I don't
want to spend the money to store it so
we'll just give it away you can get a
lot of free furniture right now and you
can repurpose that furniture into
whatever your next place is and
thankfully like I said a lot of people
have been doing this wrong they thought
this was a product based business they
bought really expensive product they
bought really good furniture they
overspend and now they got to give it
away so you can do this now let's say
you pick up a bunch of lamps a bunch of
like couches and beds and stuff the only
things you're really going to spend
money on are like little bits of Decor
that really unify everything that you
purchase accent wall painting or accent
wall design it doesn't have to be paint
you can do a plant wall you can do other
things but you'll spend a little bit of
money on decorn design and accents and
then you might spend 15 20 per lamp
shade and buy different colors of
lampshades and then 15 20 per pillow and
buy different color of accent pillows so
now that that staging props thing will
have an array of different color lamp
shades so that way when you take photos
you take the white stupid lampshade off
the top of this one lamp and replace it
with a charcoal one or a sky blue one
something that's just more congruent
with the space and it's not expensive
just like the girls who go out like to
prom and then return the dress later you
could actually even return these land
Shades after you do the photo shoot and
just replace it with the white one that
you own you could literally get away
with that these are little details that
people really don't actually care about
in space but when you take these photos
and you want a good concurrent design
and the photo matters so much then yes
switch out a lampshade for 15 or 17
bucks change out the pillows and find
one that just works best for the photo
because even if you don't keep like a
literal lime green pillow on the bed
throwing a lime green pillow on the bed
for the photo might be one of the most
important things you could do just for
the sake of your photo and make sure you
do a little bit of reading on design
Basics because you'd be surprised how
far having just a couple of vintage
books having a couple of fake plants
having a black item like a black vase or
a black statue that you can incorporate
into photos and having pops of bright
color along with large amounts of deep
dark saturated color and how these all
can come together and you can just keep
replicating variations of the same
design you'll be not only surprised but
impressed with yourself at how far you
can make the same five items go for the
sake of photo shoots like we literally
will move like a little flower or a
little plant from room to room to room
to include it in our shots if we have
nothing else to work with this is
Scrappy stuff guys and my last bit of
advice for you on this I think when it
comes to actually designing your place
remember that you are trying to serve as
a guest right we're not just trying to
appease them with the photos to get them
to book with us but we have to make good
on our delivery once somebody does book
with us so like I said this is a service
based business you're going to be
selling yourself the conversation that
you have with somebody connect with them
ask them questions help them have a
wonderful stay and this is going to be
one of the easiest ways to get five star
reviews with a product then people say
oh this was like a 2.5 star hotel but
make sure that their connection with you
is the bar that you're holding for the
review that you're asking for because if
you are completely disconnected from the
guest then yeah they're going to review
your home on what they believe to be a
five-star scoring for hotels or
something but when you make it very
clear that what you provide is a service
like hey you're going to stay in my
place I've made the place for you I've
set it up I'm going to help you find
restaurants and other things to go to
the amount of service that you're giving
them beyond the stay itself is going to
be Paramount to the five-star review
that you can get now as far as the kind
of customer that you're serving you
might find that you're near a hospital
like we are walking distance from one of
the Methodist hospitals right here which
means that our kitchen might be one of
the most important things that we can
offer here because people who are
staying for an extended period of time
will want to stay at home and cook they
need a good sturdy dining table they
need a fully stocked kitchen and they
need ample amounts of eating utensils
drinking utensils everything that they
can come and kind of settle in now I
will recommend that you have a washer
and dryer on site if you also want to
have longer stays I would recommend that
you have a gym if you want to have
longer stays if you're going to have
longer stays I'd recommend more neutral
and safe than soft colors and I think
this darker wall color will do just fine
we'll find out but braver design Styles
tend to be good for short-term impulsive
stays people who want to stay somewhere
kind of cool for a few days those more
Brave design Styles will get somebody
who knows if they're not really staying
too long to want to try to experience
something new if you want to get longer
stays people are going to be more
Discerning about where they stay and
they're going to be looking for signs
that they're not going to regret their
choice so swing for the fence and doing
some sort of weird thing or making the
place entirely pink or something like
that won't be something that people want
to stay very long for they might want to
stay there a couple of days so be
mindful of where your property is
geographically located to like points of
interest and that will help inform some
of your market research and what type of
customer you should expect to have but
again at the end of it all whether you
have a luxury product you have a cheap
product whether or not you just knocked
out of the park with like the like Fendi
wallpaper or whether you went to Ross
Dress for Less for your Decor if you
service your customer and treat this
like a service based business connect
with them through the messages right
away try to give them a service via
concierge as the value add you're going
to get five star reviews for your cheap
place and airbnb's algorithm is so heavy
on occupancy and five star reviews right
now thank you so much for watching this
video guys and as always I'll see you on
the other side
[Music]
thank you
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