Lessons from Buying a $1M Airbnb Rental
It's been 90 days since we bought our first AirBnb. Here's what we've learned...
Today I’m sharing a 90-day update and lessons learned from buying a $1M AirBnb in Scottsdale, Arizona.
In December, my wife and I bought our first short-term rental property.
We live in North Dakota. But we find ourselves hanging out and enjoying vacations in Scottsdale in the past few years.
So we decided to buy a home where we could:
Use on vacations
Make memories with our kids
Add more monthly cash flow
Read the full deal breakdown here.
Today I’m sharing what we learned in the first 90 days of our Airbnb investment.
I’m usually a multifamily or storage investor.
Anytime I enter an unknown market, I do the same thing.
I find someone who has already been successful to guide me. Nick Mogg was my guide in helping me understand how to build a profitable Airbnb from day one.
Airbnb competition is tight in markets like Scottsdale.
Here’s what we learned in the first 90 days of owning our Scottsdale Airbnb.
You are now in the hospitality business. You won’t see positive cash flow if you don’t treat this as a serious business from the start.
People will pay for the best when they’re on vacation, especially in markets like Scottsdale. That’s why we bought a luxury home at the right price with a pool, hot tub, big yard, and beautiful interior.
Your property needs a great name to make it unique and stand out. Branding matters when people are deciding to book with you. We started with the Scottsdale Oasis, which is too broad. Were still working on a new name if you have one let me know in the comments!
Photos matter a lot. In the first five photos someone sees scrolling Airbnb, you need to hook them. People make decisions fast, so don’t underestimate the importance of great photos. Hire a pro real estate photographer if you need to.
People love unique properties that create a memorable stay. Think of staying at Four Seasons vs. Holiday Inn Express. The small details like handwritten notes, detailed instructions, and having maximum amenities go a long way.
Speaking of amenities…yes you need it all for a property like this. Expect to spend money on commercial-grade furniture, fixtures, and appliances. Your bookings and revenue can grow significantly over time because of quality amenities.
Study the competition: Look at top-performing Airbnb properties similar to yours. What makes your property different? Why would someone pay more to stay in your Airbnb than to book a cheaper one? List this out and make it known in your booking.
Invest in an Airbnb tech stack:
Guesty: Manage all listings VRBO, Airbnb, Bookings, and direct website
Pricelabs: Revenue Optimization
Touchstay: Digital guide for guests
Blink/Arlo: Security Cameras (outside)
Schlage Encode: Frontdoor keyless operation
Google Nest Thermostat for efficiency
Smart TV’s with Roku’s for easy streaming services
Alas Fiver Pricing Optimization using pricelabs- https://fiverr.com/s/6a11Vr
AquaLink: Control the pool heater and lights with your phone (guests pay a lot more for heated pools and increase the number of bookings you get. We had to turn down a lot of bookings just because our pool was not heated!)
MoenFlo: emergency water shutoff
We still have a lot to learn and a lot of work ahead to ensure this property is successfully cash-flowing every month.
I’ll share a 6-month update with numbers.
P.S. If your looking to visit beautiful Scottsdale, AZ soon — here is a link to book a stay: https://airbnb.com/h/ascottsdaleazoasis
That’s all for this week!
Unfollow the Herd,
Marc Kuhn
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