The 5 Steps to Making Short-Term Rental Millions (Part 1)

Short-term rentals have taken the world by storm. Over the past two decades, the bed and breakfast type business has fallen prey to the more scalable short-term rental model. Real estate investors quickly realized that they could capitalize on the long-term equity gain of rental properties with the cash flow of hotels in one highly-lucrative asset class. Thus, the rise of the short-term rental, VRBO, and Airbnb investor was born.

Arguably the most notable short-term rental investor in the space today is good friend of the show, Rob Abasolo. Rob is such a pioneer in the short-term rental investing area, that veteran agent, broker, and investor David Greene, has partnered up with him to collectively build their cash-flowing, equity-increasing empire together. With dozens of deals under both of their belts, Rob and David walk through the five steps that it takes to find success in the short-term rental space.

This episode is split up into two sections, with the latter coming out right after this one. In this show, Rob dives deep into finding a short-term rental market that fits your needs and goals, choosing a location that specifically benefits you as the investor, the different types of short-term rentals, and how to build a vacation rental strategy that will match your goals for financial independence. Whether you’re thinking of buying a snowy chateau or a desert domicile, Rob and David will help you put the pieces together so you can build a strong portfolio that will benefit you for decades to come.
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Join BiggerPockets for FREE:
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Sign Up for BiggerPockets Events Like Short-Term Rental Bootcamps:
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It's Not Too Late to Join the Short-Term Rental Investing Game:
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How to Analyze a Short-Term Rental Before Buying:
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Subscribe to David’s Youtube Channel:
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Watch Rob’s Video “This is exactly how much your property will make on Airbnb”:
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Invest with David on His Upcoming Projects:
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Connect with Rob (Roubilt) on Youtube, Instagram, and Tiktok:
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Connect with David and Rob on BiggerPockets:
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Follow David on Instagram:

Episode 578

0:00 Intro
3:54 Step 1: Choosing a Short-Term Rental Market
11:41 Cash Flow vs. Appreciation
16:34 Step 2: Choosing Your Location
22:20 Out-of-State Investing vs. Local Investing
26:14 The 4 Short-Term Rental Categories
33:34 Vendor Availability, Competition, and Market Growth
37:14 Vacation Rental Seasonality
40:44 Step 3: Short-Term Rental Strategies
43:38 The Time Commitment of Running Vacation Rentals
46:56 How Much Risk (and Growth) Can You Handle?
50:10 Remodeling Your STR
53:59 Outro

[SCRT]

Literally to the 1‍‍‍% whos reading this, God bless you, and may your dreams come true, stay safe and have a wonderful day.‍ ‍‍‍‍💕

[hugoperalta]

Robuilt + BiggerPockets?? Is this some multiverse crossover we have here? Damnnnn this is quality content👏🏻👏🏻

[davidt]

Thanks for this video, Rob and David! Super excited for the rest of the series. One question - how do you think the increase in interest for second home loans in April will affect the market? Will less people be buying second homes? Will it ruin the returns on most properties? Will we see more properties on the market? Thanks!

[mariachristoffersson]

Hi David and Rob, I’m so happy you guys found each other, looking forwards to continue listening to your show!!!
I have an question I hope you could bring up on your show. INSURANCE!!!! Long term insurance no problems! But when it comes to short term, what do short term rental owner do. I’ve been looking for a month now! Tried so much, is it super expensive to insure ST? I have only found one so far and the quote I got was $7500/year. Is that normal? It double the owner occupied, 3 times long term rental.
What What, please help me. 🙏🏻

[Andradi]

David and Rob, thanks for sharing your knowledge! David, your quote and thought about “having a relationship with real estate” was a great nugget. Rob, very cool seeing you now co-hosting BP. Congrats! Great content guys!

[cynthiamcfarland]

Rob and David are bringing it! Thank you for sharing in this podcast

[bdaysex]

Thank you for the very informative video!! How do you research the short term rental laws in the town that you're interested in? I am finding the process confusing and not clear cut information online.

[chibsryder]

This was really awesome.
Question: I am in Canada looking at REALLY EXPENSIVE markets that I can buy a primary residence property in.
The Airbnb nightly rates I see for other properties in the area will not carry all of my expenses.
Should I move on or am I doing the wrong type of analysis?

[rmederos]

Awesome video guys. I really needed to hear this. 33:30

I'm trying to buy our first STR in Blue Ridge. It's been stressful to say the least. Thanks again for the content.

[DillonBeachSeaEsta]

You guys are awesome, thanks for sharing your experience and insights.

[jillyanmacmorris]

You two are the funniest; and this is SUCH a timely, concrete video for me. Thank you both!

[cameronwalker]

Love this. I just bought my first house-hack and have booked 58% of my mortgage for the year in just 33 days! **thanks robuilt for the inspo** I want to scale and get into another property, but concerned i wont be able to secure financing considering my W2 income and how large and recent this mortgage is. Any advice on what kind of loan I should look for?

[bryanfahey]

So from a scaling perspective - I understand the importance of getting good appreciation and then using that as a way to invest in a few properties. Do you think it makes more sense to sell those high appreciating properties or to take a heloc out against it and reinvest? Great content guys!

[djo]

I am going to need to take Bigger Pockets classes-so confusing between F. Peace U, Lifestyle Unlimited, Bigger P., etc...Anyway, my plan is to find land with a duplex or home on it and create affordable senior housing. Seniors are getting CRUSHED by the active senior communities, which charge upwards of 3000 and raise rent 5% or more after they are already in, and bonded with new friends. It's rough for them when they are on fixed incomes. I'd like to do a space where each has a tiny home, a little fencesd area, and allow pets. Any suggestions on grants?

[sauban]

Informative way to start thinking about investment properties, looking forward to part 2!

[swatson]

One of my favorite podcasts from BP so far! You guys give such practical, step by step advice that really helps us newbies. We're currently putting together our 3rd STR, but I've already got my eyes on where to buy the next one. Listening to this wealth of information from you two experts is exactly what I need to steer me in the best direction! Keep it going, David and Rob!

[TheForexApostle]

Wow, amazing video, I hope this will reach to a lot of viewers.

[deborahbrancheau]

How do you feel about buying land with seller-financing if you want to do glamping?

[martapredko]

How to decide if you want to do airbnb or corporate rental? How to start in corporate rentals?

[lilc.s.]

San Diego has a new ordinance for STR’s beginning Jan 1st 2023. Only 1% of all properties can be STR’s except the Mission Beach area. And for the 1% those people have to enter a lotto. Unless it’s their personal home. This kills a lot of AirBnB in San Diego.