Transcript
Christian Healthcare Ministries Announcer (0:02)
Brought to you by CHM, a budget friendly faith based alternative to health insurance. Chministries.org budget so I'm a 40 year old guy.
James (Caller) (0:12)
I got a fiance and a baby who turned two in July. And my fiance and I, we have three Airbnbs that are doing really well. Four years into it, last year we grossed about 102,000. This year we're forecasting to do about 127,000 gross on the three Airbnb DMVs with a 62% profit margin. Day job is hospitality sales. I make about 100, 120 thousand a year. She is a psychologist, she makes about 110. So our issue is there are these micro lofts and another one is available, but it's in a super historic old building. And I'm thinking about getting a fourth Airbnb, but the banks are telling me that I got to put 40% down. They're going for about two and a quarter. So I want to hear your take. If I should get another profitable Airbnb and have it under the same roof as all my other ones or is that considered maybe too high risk?
Real Estate Expert (1:18)
Okay, well, I not sure you called the right show. I'm not sure that you know what we do, but. So I own several hundred million dollars in real estate. Okay. I love real estate as an investment. I went broke in the real estate business in my 20s, if you haven't heard the story. And the way I did that was I borrowed too much money and the banks called our notes because we were in a high risk scenario. The Airbnb business is basically the hotel business. It's a very high labor, intense, you know, a lot of hassle. So the money that you're earning on those Airbnb, you're working your hiney off to get that money. And you're probably working, you're working some other people's hiney off because it's a lot of hassle.
James (Caller) (2:22)
I'm the maintenance man, I'm the housekeeper, I'm the guy checking them in. Yep.
Real Estate Expert (2:27)
And you have a two year old way, so.
James (Caller) (2:29)
Yep.
Real Estate Expert (2:30)
Yeah. Why don't you pick up golf too? Oh my God, you know, I mean, you ain't got time to do nothing. So I don't know that you have the bandwidth to add another one on your personal number one. Number two, the risk with Airbnbs is, as you probably know, and I don't know where it stands in Providence, Rhode island, but many HOAs, many neighborhoods, many entire municipalities are passing zoning to stop it because they're disruptive to the neighborhood. And so I know a lot of people that have lost the ability to run an Airbnb on a property they bought for an Airbnb and in a historic setting, that's very possible.