Hey, what's going on guys, it's Ricky here with tackle Solutions I have my business partner Nick Paladino who is really big on long-term rentals and actually has a short-term rental I'm currently turning one of my long-term rentals into a short-term rental which is considered to be an Airbnb. This has been something that I I've wanted to learn more about, but who better to learn from than someone that's already doing well in that? Niche Now uh, one thing that you must know about Nick is not that he has hundreds of airbnbs. He has one successful one that you started because you saw someone else, right? Yep, it started from a house that we got that was going to be a potential house flip and then you're like hey, let me let me take a whack at this where if it doesn't work out as an Airbnb then the idea of you being able to live it, live in it as your primary residence wasn't the worst casing, right? Yeah, So one thing that I thought would be of value is as I've began having this. these conversations with him I began to learn about the Do's and the don'ts I I Thought that I would make this video about the three things that he learned when he first started.

when I just first started three things that he learned while having a short-term rental known as an Airbnb. So one of the first ones that I wanted to ask you is you have your long-term rentals which is you know 12 month leases, You have student leases and you have this one short-term rental. What is the difference in Revenue monthly? Yeah, so that's great because there's a massive difference and I feel like there's categories. There's your long-term rentals which are going to be the most consistent, the most steady throughout anything that you can possibly do.

And then there's student rentals as well, which some people tap into generate a little bit of a higher cash flow. But then over the student rentals, there's the short-term rentals which are absolutely insane. So I launched my Airbnb in February of last year which happens to be the peak season here in Arizona and the very first month I had that launched, it was just under ten thousand dollars gross revenue for that very month. and they get that into comparison.

The best are: my highest rented property is twenty one hundred dollars which is my student rental at the moment and that cash flows me 800 to 900 a month. So I basically one property five X's uh, not only my my gross but my income compared to all my other long-term rentals which is insane. And another note that we talked about briefly was my annual income on four of my long-term rental properties equaled out my Airbnb So I same amount of income from my Airbnb which was thirty five thousand dollars last year, that one property and then I did four properties thirty five thousand dollars because they're just long-term rentals, less cash flow. and I think that answers the question.

If you've been debating of going on the traditional side of things uh, or traditional being long-term rentals or short-term rentals. I mean at least in Nick's experience, this is something that I'm gonna have to follow up with as well because uh, I was thinking of of having my long-term rental once again as a long-term rental and on average Market rent rates would be right around 1900 to 2500. So I'm excited to see how my short-term rental ends up panning out for the next couple of months and you know them being popular months here in Arizona Now the second thing that I want to talk about that I've learned from you is my short-term rental that I'm about to start with. you does not have a pool.

How much of a role does that play with Airbnbs? So that's a really good question just because it's Arizona in the High season. A big incentive for people to rent out your property is it has a pool. So we are well aware of this. We already talked about it going into making his a short-term rental, but because no matter what, like Arizona is so beautiful in the winter time, everyone wants to come here to get out and escape from wherever state they're coming from.

Whatever the country they're coming from honestly to it will affect your bookings I Don't think we're gonna equal out or match what I do with yours, but at the same time I do think we would be able to one and a half to 2x what you'd get on a long-term rental even without a pool. And then we also have to like look into some HOA regulations and stuff like that, which we already talked about briefly as well. So we have systems in place to kind of protect us in that too. but it is a huge difference having a pool specifically a heated pool.

I Learned that last year. yeah, holy moly. I had thirty thousand dollars of inquiries the first three weeks of launching my Airbnb of people asking if I had a heated pool. so I immediately spent 10 grand and got it in there and it's been well worth it so far, definitely.

and I I think that's the interesting thing about it where you know when I was debating if I should have my long term once again or short term? Uh, right now I'm literally because work gonna. we're about to enter this very popular season in Arizona for short-term rentals I'm literally just trying to now buy furniture to furnish this property and I'm going to spend about two to three thousand dollars. But literally if I just even rent it out for one month, right? I could I could break even I can probably bring in five thousand dollars. Uh, and in comparison, I would have normally have just brought in two thousand dollars.

so worst case scenario: I'll break even and at least I'll be able to test the waters now. One of the last things that I want to ask you is you know it's kind of a daunting experience, right for someone that wants to get into Airbnbs. but then they're debating whether they should manage it themselves right because they don't really know what to do or to actually hire someone to take 15 to 25. So in your opinion, do you think that someone should pay for someone else to manage it or for you to be able to manage it yourself if it's your first? Airbnb that's a great question.

So I can say the same thing about long-term rentals and maybe this is just me. but I always say like test the waters first, like try it out first. Give it a month or two, even three months and see, is it stressful? Is it too much work? Are you too occupied? Is your mind too occupied with doing all the everyday Stuffs the ins and outs of messaging, setting up your cleaners, ordering materials Anything like that? I Would try it out because it's not as big of a barrier of Entry as people think and same, especially with long-term rentals because it's even easier to manage a long-term rental property now. I'm thinking like out of state if you don't have any systems in place.

out of state it may be a little bit more difficult. but I feel like if you're looking in a specific area at a specific house to Airbnb you probably know someone. you have an agent out there that has connections. So I would say certainly try it out on your own.

And like you said, it's usually to 25 off the top which is a huge number at the end of the year for me. If I didn't do it myself, that would have been a seven eight thousand dollar loss that I would have taken on it. Which and I take no problem. Yeah, I mean it's less than an hour a week for me on pretty much everything all the rental properties.

Now there's two things I want to share about Nick First off, he is a problem solver. So if you're someone that really doesn't like to dedicate the time to do it yourself, um, you know this is why I personally. although I'm a Problem Solver in specific areas I do not want to deal with managing my own rental uh, due to just what I view as opportunity costs I would rather spend time with my family in the simplest way. This is where I'm actually hiring Nick to manage my Airbnb as he has the experience and I don't mind missing out on 10, 15, or even 25 of what Airbnb would potentially pay me.

So that's the route that I'm taking. Yeah, very good. So I just want to make sure that it's understood that there's nothing wrong if you have the time, but if you're someone that, like you said, is out of state or you don't necessarily want to dedicate the time to that, then there's always the option out there for someone else to manage it yourself. And if you guys want to get in contact with Nick I'm going to put his link down in.

the description will be the first link down below. and now the I know there's one last thing that you wanted to share and there's a little tip for someone that's buying different things for their Airbnb What was it that you said that if it can, if it has any slight possibility of something breaking or getting stolen, it will at the end of the day the amount of small statues, plant pots, random stuff that got stolen out of my house that I didn't realize until like five or six bookings later. Just be careful. Uh, send your cleaners in.

Go look every single time because stuff will get stolen and it's hard to point the blame on someone when it's like two weeks later. So I thought that was a little funny side note, but yeah, someone stole a statue the other day. so it's like on the top of my mind it was so annoying I like that. So again, if you guys have any questions, feel free to reach out.

his Instagram is going to be linked down below. Nick is not only my business partner when it comes down to investing in real estate in the Arizona area, but is also an avid real estate agent in the Arizona area as well and also manages his Airbnb and manages mine as well. So if you have any questions, he's going to be your guy. especially if you've been considering investing in the Arizona area.

and that's that. First link down below. If you have any other questions, feel free to reach out. To me, mine's going to be the third link in the description I Appreciate your time and if you want to know anything else for future videos, comment down below and we'd love to answer it on our next one.

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