Real Estate Investing School Podcast

Episode 53: REAL DEAL: 6 Figure Airbnb!
Date: May 11, 2023
Guest: Alex Smith
Host: Brody Fawcett

Episode Overview

In this “Real Deal” episode, host Brody Fawcett and guest Alex Smith break down the complete story behind Alex’s standout Airbnb property in Orlando, Florida. They explore how Alex created a six-figure cash-flowing short-term rental by leveraging unique design, creative partnerships, and a bold, quality-first vision—even with no direct experience in property renovations. The discussion highlights practical investment strategies, the power of networking, and actionable advice on maximizing Airbnb profitability.

Key Discussion Points & Insights

Alex’s Journey Into Real Estate Investing

• Background:
  • Alex hesitated getting into real estate due to high California prices, but eventually bought his first home in Vero Beach, Florida for his mom. That house appreciated “a couple hundred thousand dollars” (02:24).
  • Inspired by meeting Brody and others interested in Airbnbs, Alex bought two additional properties and became involved as a limited partner in multifamily deals.
• Location & Market Focus:
  • Alex invests in Florida; the featured Airbnb deal is in Orlando, near Universal.

Relationship-Driven Deal Sourcing

• Meeting His Key Partner:

  • Alex met Bill, the future co-creator of the Airbnb, by staying in his high-end rental and admired his DIY skills and property vision (02:53).
  • Formed a long-term friendship and business partnership: “I became really close friends with him, went to their wedding” (02:53).
  • Brody highlights: "Finding like partners that can do things you can't…is much more valuable than someone else that can do the same thing you can do" (03:51).

• The Real Estate “Triangle”:

  • Success requires two of three: knowledge, money, and hustle. Alex had money and some knowledge, but lacked time, so he leveraged Bill’s expertise and time.

The Unique Property & Its Standout Features

• Why This Property?
  • Newly renovated, four-bed/three-bath, near Universal studios (not Disney, so less competition and higher rates).
  • "We knew we could make it sleep 13, which puts us in a world of our own…almost no Airbnbs around there can sleep 13" (06:58).
• Customizations & Upgrades:
  • Created eight custom floating beds; top-of-the-line mattresses (Tempur-Pedic, Purple).
  • Massive backyard transformed into an entertainment oasis:
    • 18-hole mini golf course.
    • Golf pro shop in the shed.
    • Driving range, putting green.
    • 6,000 sq ft of turf (no grass maintenance).
    • Large beach area for lounging; 100+ palm trees and Eurekas for privacy (12:34).
  • Everything designed for family gatherings and social media-worthy experiences.

Funding, Numbers, & Returns

Acquisition & Renovations

• Purchase price: ~$560,000 (09:25)
• Down payment & closing: $121,000
• Renovations: $87,000 (paid to Bill & Fabian, who managed the project and ongoing property management, but took no equity)
• Total out-of-pocket: $210,000 (08:56)

Revenue & Profitability

• First full month (December): 22 days booked at $471/night, $10,362 gross; $8,300 after manager’s 20%, yielding $4,500 profit after $3,500 mortgage (16:16).
• Moving forward, booked nearly full every month at $500–$600/night. At 90% occupancy, projects $13,500–$15,000 monthly; $7,000+ net/month; $80k–$90k cash flow per year (16:47).
• Projected cash-on-cash return: 27% right out the gate (based on December), possibly higher as reviews and pricing improve (17:51).

Vision & Long-Term Strategy

• Quality over Quantity:

  • Alex prefers fewer, high-ROI, high-experience properties over owning “a hundred doors that cash flow 50 bucks a door” (19:39).

• Experience as Differentiator:

  • "What would make just you personally want to be at that Airbnb on the weekend?" (24:13)
  • Experience designed for both families and larger groups; focus on comfort and entertainment, ensuring the property will always stand out even as the market gets saturated.

• Replication & Expansion:

  • Plans to make "18 hole mini golf around the world...destination locations" (17:51).

• Proof of Concept:

  • With established numbers and guest demand, raising outside capital for similar projects becomes realistic—Brody: "If you build it, they will come" (25:31).

Notable Quotes & Memorable Moments

On Partnership & Vision

• Alex:
  “I knew I had the money. I have enough knowledge…but I don’t have time with my business at all... So when we came to an agreement that he would basically help me find the deal, help me renovate...and manage my property—that was like the all in one solution to pull the trigger on it, right?” (04:47)

• Brody:
  “Props to you for being like, my missing link is time...so I’m gonna go find someone who’s the best at it and just recruit them.” (05:42)

On Customization & Standing Out

• Alex:
  “I just kept going and going all in with everything that would make it exactly how I would want it to be...What if there’s 10 times as many Airbnbs in the next three years? Is this property still going to stand out?” (20:09)

• Brody:
  “You go to resell, the ROI...all these things that make so much sense. In the short term, it’s like, oh, I’m spending a little more money. But in long term, it always pays off.” (22:49)

On Returns & Scaling

• Alex:
  “I just, I can’t wake up excited about a hundred bucks, 200 bucks, 500 bucks. But I can get excited about 10,000 a month, 15,000 a month...How can I make this property collect the highest fee while making something I would want to be?” (12:37)

• Brody:
  “There’s so much work and energy that goes into that. So I love that...What was the biggest thing you learned going through this deal specifically?” (19:39)

Practical Takeaways

• Alex:
  “Stay at the dopest Airbnbs you can find wherever you go and become friends with those hosts. Sometimes they’re actually owner...and you’ll develop relationships...you kind of can realize, like, the next level to the game and why it attracted you.” (23:31)

• Alex:
  “Looking through the lens of the people you want staying there is one of the most impactful things you can do.” (25:11)

Timestamps for Important Segments

• Alex's background & first deal: 01:24–02:29
• Meeting the partner (Bill) and property search: 02:53–03:51
• The “triangle of real estate”: 03:51–04:47
• Property specifics & unique features: 06:26–08:23, 12:34–14:56
• Funding & renovation breakdown: 08:24–09:07
• Projected returns and monthly cash flow: 16:16–17:51
• Scalability and vision for “golf around the world” theme: 17:51–19:00
• Quality-over-quantity strategy: 19:39
• Biggest lesson learned: 20:09–22:49
• Advice for aspiring investors: 23:31–25:31

Actionable Advice for Listeners

• Leverage Partnerships: Fill your real estate “triangle”—find partners who have skills or time you lack.
• Focus on Unique Experiences: Even in crowded markets, offering something truly distinctive (e.g., sleeping 13, high-quality beds, unique recreational amenities) attracts steady, profitable bookings.
• Prioritize Quality: Go “all in” on making your property stand out visually and experientially; short-term cost pays off in long-term resilience and returns.
• Network With Hosts: Stay in high-end Airbnbs, befriend experienced hosts, and learn directly from the most successful players.
• Design for Your Ideal Guest: Think through what will delight—and relieve stress for—your target families or group renters.

Connect With Alex Smith

• Instagram: @alexhsmith
  (“Instagram is my business card. That’s where I operate out of.” (29:18))

A must-listen for real estate investors curious about short-term rentals, partnership-driven investing, and building truly standout Airbnb experiences. Alex’s deal proves that creative vision, quality execution, and relationship-building can yield extraordinary (and repeatable) results.