How To Create an Attractive Monthly Cashflow from Real Estate WITHOUT Buying One Property.

Last week I hosted a webinar highlighting an unusual real estate business. This business may be the perfect dream business.

Here’s why:

This unusual business can be started with only a few thousand dollars. It doesn’t require a license. It doesn’t require an office. It doesn’t require any significant overhead. It can be run from a laptop computer.

You can start and run the business without any employees. This means no hiring, no firing, no managing, no payroll, and no payroll taxes. Many of the activities for the business can be easily outsourced.

You don’t have to borrow $1.00 and you won’t have to worry about the next real estate crash, or stock market crash!

The income of this business is unlimited. You can build a big business, or a smaller lifestyle business. The business provides recurring monthly income meaning you’ll have the ability to get paid multiple times for the same work.

Most of the administrative tasks of the business such as billing, advertising, and record keeping are handled by someone else for a small fee. The income from the business will be automatically deposited into your bank account. You won’t have to get a merchant account, make one collection call, or send one invoice. It’s all done for you.

This unusual business is a real estate business, but you don’t have to buy any real estate. You’ll profit from real estate owned by others. This means someone else is responsible for the roof, furnace, air conditioner and all of the other major expenses of the property. This also means someone else is responsible for the mortgage payment and property taxes.

Here’s how the business works…

We rent nice condos, townhouses, or homes from owners with 6-month to 12-month leases at long-term rental rates. We then offer these nice condos, townhouses, or homes on Airbnb as nightly short-term rentals. Short-term rental rates are a lot higher than long-term rental rates creating an attractive monthly income. The owners we rent from understand what we are doing and are actually happy to work with us.

To show you how this works, here’s a screenshot showing the average monthly income from homes listed on Airbnb in Cleveland over a 12-month period:

airbnbincome
The last column on the right shows the average annual income for the particular type of property.

Within 5-minutes on Craigslist, I can easily estimate the potential profit available. Here’s a screenshot of furnished two-bedroom, two bath condo in downtown Cleveland:

Screen Shot 2017-05-25 at 9.08.37 AMAs you can see, this is a very nice condo with all appliances, garage parking, and it’s fully furnished. The rent is $2,147 a month for a total annual cost of $25,764. By studying the average Airbnb numbers from above, we can see that the average annual income for a two bedroom is $46,391, which is $3,865 monthly. The estimated monthly income from this particular property $1,718 for an annual profit of $20,627 before utilities and miscellaneous expenses. Let’s reduce this estimated annual profit by $5,000 for expenses for a net profit estimate of $15,627.

To rent this condo, we would probably need $4,294 (security deposit and first month’s rent). Our $4,294 investment would provide around $15,000 a year of income. This is a 263% return on investment without borrowing $1.00. At the end of the lease, we would get the security deposit back increasing our return on investment even further.

Now, multiply these numbers by 3 properties… and you’ll come up with…. $5,154 of monthly income.

5 properties…   $8,590 of income.
10 properties…   $17,180 of income.

See why this might be the perfect business?

Airbnb handles the advertising, billing, and all other administrative tasks. We simply profit from difference between the long-term and short-term rental rates.

Obviously there is a great deal more to the business and if you’d like to learn more, I’ll be scheduling another Airbnb webinar in the next few weeks. To get notified about this webinar, enter your email address below and I’ll contact you with details:

 

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