1000%+ ROI Airbnb Arbitrage Deal Using a Nasty Trick

Summary

In this video, the host shares an exceptional Airbnb investment strategy that yielded over 1000% ROI. By renting properties instead of owning, utilizing a furniture rental service, and negotiating for free rent, the host details a low-cost startup approach. The video explains the costs, revenues, and profit margins, emphasizing the benefits of taking calculated risks for high returns. It also explores the decision-making process between renting and buying furniture for Airbnb properties.

Takeaways

• 💰 The speaker has an Airbnb investment with an impressive ROI of over 1000%.
• 🏠 The properties are rentals, not owned by the speaker, with a monthly rent of approximately $1100 per apartment.
• 📈 The revenue for one of the properties in July was over $2700, highlighting a significant profit margin.
• 🛋️ The furniture for the Airbnb was rented instead of purchased, with a setup cost of $537 and additional purchases amounting to $381.
• 💡 The speaker negotiated with the landlord for a security deposit and 10 weeks of free rent, starting payments from the 11th week.
• 🔑 The total startup cost for one unit, including furniture rental, was $1281.79.
• 📊 Operating expenses for the unit were calculated to be around $1872 per month, considering rent, furniture rental, supplies, and utilities.
• 📈 The net profit for one year, after accounting for free rent and other costs, was over $13,000 with a startup cost of $1281.
• 🚪 The speaker negotiated and set up 11 similar units in the same building, leading to a total annual profit of around $144,000.
• 🔑 The total startup cost for all 11 units was $14,102, demonstrating a scalable business model.
• 🤔 The speaker contemplates the strategy of renting versus buying furniture, weighing the benefits of lower startup costs against the potential for higher profits with owned furniture.

Q & A

What is the average ROI percentage that Forbes suggests for a good investment portfolio?

According to the script, Forbes suggests that a good return on investment for a portfolio is seven percent.

What ROI percentage does Bigger Pockets recommend for real estate investments?

Bigger Pockets recommends a good return on investment in the real estate market to be 15 percent.

What ROI percentage range does Mash advisor suggest for an Airbnb investment?

Mash advisor suggests that a good return on investment for an Airbnb is between eight to twelve percent.

What is the claim made by the speaker about their Airbnb investment ROI?

The speaker claims to have an Airbnb investment that is making over one thousand percent ROI.

What was the monthly rent the speaker paid for the properties mentioned in the script?

The speaker paid about eleven hundred dollars per apartment as monthly rent for the properties.

What was the total revenue generated by one of the Airbnb units in July according to the script?

The total revenue generated by one of the Airbnb units in July was twenty-seven hundred dollars and change.

What was the total startup cost for setting up one Airbnb unit as described in the script?

The total startup cost for setting up one Airbnb unit was 1281.79 dollars, which included furniture setup, supplemental furniture, and supplies, as well as a security deposit.

What is the significance of the 10 weeks of free rent negotiated by the speaker?

The 10 weeks of free rent is significant because it greatly reduces the total operating costs for the year, making the investment more profitable.

What is the speaker's strategy for the furniture in the Airbnb units?

The speaker's strategy is to rent the furniture instead of buying it, which reduces the initial startup costs and increases the ROI.

What is the estimated net profit for one year for one Airbnb unit, excluding the 10 weeks of free rent?

The estimated net profit for one year for one Airbnb unit, excluding the 10 weeks of free rent, is thirteen thousand one hundred and forty-six dollars.

How does the speaker plan to expand the deal to increase profits?

The speaker plans to expand the deal by negotiating and setting up 11 doors in the same building, which would lead to a total annual profit of around 144 thousand dollars.

What is the speaker's view on the importance of getting free rent in an Airbnb deal?

The speaker views getting free rent as one of the most important aspects of an Airbnb deal, as it significantly reduces costs and increases profitability.

What is the speaker's plan regarding the Rent to Own Furniture company mentioned in the script?

The speaker plans to do a series of videos on the Rent to Own Furniture company and another company that offers furniture setup, to explore and share more about these options.