Airbnbs are TOO EXPENSIVE to Operate - How Much Ours Costs Us

Here is exactly how much it costs us to operate an Airbnb and if we made any money!

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Investment details of a couple of our properties!
   • Our Best Airbnb Investment Yet ($200k...  
   • Passive Income - How ONE Investment S...  

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Rich Dad, Poor Dad: https://amzn.to/36bbLMO
The Millionaire Real Estate Investor: https://amzn.to/2YeAxHC
Buy, Rehab, Rent, Refinance, Repeat: https://amzn.to/3sW3WVm
Cash Flow Quadrant: https://amzn.to/39gAuBF

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Yes, it does cost more money to operate an Airbnb than it does a traditional rental property. So, does it cost so much that you don't have any room for profit?

I'll break down all the monthly expenses we account for for our properties and show you the exact amount of expenses for one of our properties for the past three months and then reveal how much revenue we brought in to see if we were able to make a profit and cash flow.

When operating an Airbnb, you need to account for the following:
- Mortgage (Principal, Interest, Taxes, Insurance and PMI)
- Utility bills (Water, Gas, Electric)
- Wifi - are you providing internet for guests
- TV service or streaming services
- HOA (Home Owners Association)
- Pest
- Landscaping
- Maintenance and Repairs
- Garbage
- Automation tools such as Smartbnb, YourPorter and Pricelabs
- Cleaning service
- Welcome gifts
- Additional furnishing costs
- Misc. Expenses

Once you account for all these expenses, you will subtract the total from the revenue you bring in and that will be your monthly cash flow (profit or loss).

If you pick the right location for a short term vacation rental (Airbnb or VRBO) you can bring in a significant amount of revenue. One or two properties in some cases can set you financially free!

The one property mentioned in this video is a mountain house/Cabin in Gatlinburg, TN. In November, we did a revenue of over $14k and our expenses were just over $4, which gave us a PROFIT of nearly $10k!

In December we had a profit of over $13k and in January it was much slower and cheaper nightly rates (this is the slowest month of the year for this area) and we only netted just over $1k in cash flow.

It can certainly be up and down and somewhat seasonal depending on the location, so when doing your research, it is critical that you understand what the forecasted average daily rate and occupancy numbers will realistically be.

Yes, it can be quite expensive operating Airbnbs, but the potential profit and cash flow is so substantial compared to an ordinary rental property, it makes it all worth it!

Investing in real estate is the fast path to financial freedom in my opinion. It beats trying to invest and beat the stock market, especially when most professional struggle to beat the returns of the S&P 500.

Of course, you could always invest in Bitcoin! It's going to the moon right? Maybe... I'm not quite sure - but if your excuse for investing in Bitcoin or any other cryptocurrency is for a hedge against inflation, I would much rather invest in real estate as it is a tangible asset and truly a hedge against inflation and always will be. Plus you don't have to worry about the volatility we are seeing in the crypto market.

I encourage you all to make sure you understand what your investing goals are and align your actual investments to reflect those goals. Don't just follow the trends - that's how you can end up losing a lot of money. Do your homework and invest in things that you believe in and understand the business!