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Thanks, @GlobalWealth. I'm looking at some opportunities in the Canary Islands so I guess that remote should be fine in this case due to the high number of tourists coming pretty much all year round.
I would imagine you would have no shortage of potential guests there.

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Hey @GlobalWealth, any updates, conclusions, new tips? Anything you'd add today, one and a half years after starting this thread, for a person who wants to follow this strategy?
 
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Hey @GlobalWealth, any updates, conclusions, new tips? Anything you'd add today, one and a half years after starting this thread, for a person who wants to follow this strategy?
Great timing.

2 days ago I made a deal to rent my neighbor's apartment. He lives in another country and doesn't come here very often anymore.

He was in town and I invited him over for tea and he told me his situation that he will receive the his place to students.

I told him to just rent to me for the same price. I was clear it would be to sublet for short term and that I would take care of the place. He said no problem.

So we are signing a one year lease for €450 per month plus utilities (average €100 per moth). I have the option to renew at the end of the year for another year for the same price.

The apartment is 2br 3ba 83m2 right in the center of the city.

At a very conservative estimate of €80 per night and 15 nights per month, after paying all bills and property manager I still net a minimum of €600 per month.

Not big money but it's very little work for me and another small stream of income.

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MyronGainz

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Hey @GlobalWealth thanks for this thread, amazing information, appreciate your contributions to the forums.

Quick question, do you, or have you ever done, an ultra luxury property on Airbnb? Like a penthouse or a villa? I wonder how they perform as oppose to average units.
 
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Hey @GlobalWealth thanks for this thread, amazing information, appreciate your contributions to the forums.

Quick question, do you, or have you ever done, an ultra luxury property on Airbnb? Like a penthouse or a villa? I wonder how they perform as oppose to average units.
I have not. Just normal stuff.

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I seriously love this thread ! Thanks to all who have contributed.

Regarding Airbnb...I've researched this quite heavily. I've stayed at 2 airbnb out of State and it was great. I'm making some upgrades to my house and I will be on Airbnb next month (February).
We live 20 minutes from downtown Detroit and we're not exactly in a tourist area....but....there is a Holiday Inn Express under construction 1 mile from us, and a Hampton in under construction 2 miles from us. I don't know what they see for demand, but I figure they know what they're doing which is why I will be on Airbnb.

We will be selling our house inside of 12 months so if I can show cash flow from Airbnb, it may make it more valuable for the right buyer.

We shall see.
 

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Hey @GlobalWealth thanks for this thread, amazing information, appreciate your contributions to the forums.

Quick question, do you, or have you ever done, an ultra luxury property on Airbnb? Like a penthouse or a villa? I wonder how they perform as oppose to average units.
I was wondering the same. I've been looking at some beachfront/ocean view condo units for sale in Costa Rica.
 
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I was wondering the same. I've been looking at some beachfront/ocean view condo units for sale in Costa Rica.
Just look at comparables in the area. If it is a touristy area then it likely CAN do well.

But it's just a math problem.

If the condo costs $1MM and would only rent for $100/n then you need to rent for 1000 nights per year just to hit 10%.

Unless your reality is different then I don't think it's possible.

But if it can rent for $1000/n then you only need 100 nights.

Of course it's always a risk but you can research the local market to get comparable nightly rates and occupancy.

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Great THread indeed. Thanks, my brother talks about buying apartments all the time. Will talk to him.

Do you get your loans in your come country then buy in other countries?
 

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Great THread indeed. Thanks, my brother talks about buying apartments all the time. Will talk to him.

Do you get your loans in your come country then buy in other countries?
If you can get a loan you get them in the country where the property is located.

I don't think you will find a bank that will loan in another country due to the difficulty for them to foreclose for default.

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I thought I would update anyone interested in recent developments.

I was working with my next door neighbor to possibly buy his apartment when suddenly he sold it to someone else. The funny thing is the new owner came to me and asked if I would be interested in renting it.

Long story short, I worked out a deal to rent his apartment for eur470/m plus utilities. Total utilities average around eur100/m. That is eur570, or around usd630/m.

The apartment is 83m2 (~90ft2), 2br/2ba. It is in the very center of the city in a fantastic location (I should know, I live next door). Everything is walking distance with dozens of restaurants, shopping, coffee shops, bars, clubs, theaters, museums, etc. all within a short walk.

I spent around eur600 fixing the place up with new linens, some decorations, new paint, etc. The place really looks incredible.

I am starting out very low on the daily rent price (around eur60/n) as the listing services (airbnb, booking, vrbo, etc) like to see some reviews and lower prices help get guests. Once I have some reviews I will up the base rent to eur80/n.

In the first 10 days since listing, I have gotten 10 reservations for an average of 4 nights per visit. I am nearly full for April, half booked for May, and reservations for June and July already.

Based on my estimates at eur60/n, I should net at least eur300/m. Once I am up to eur80/n, I will net a minimum of eur600/m.

All hands off with my PM.

Not huge money, but millionaires are usually made 100 euros (or dollars) at a time.
 
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Another update on the foreign properties.

This week I am installing keyless entry for all of the properties.

I fired my PM due to some ongoing issues and conflicts with her.

Ironically I likely wouldn't have fired her if it weren't for these issues but it motivated me to automate this process - which is great.

I have hired 3 cleaners to do the cleaning and they will have their own code to enter and exit the properties. Guests will get check in and out procedures by email. We will not meet guests personally once the keyless entry are installed.

It will cost about €300/property for the locks but the cost savings on the PM will yield €300 - 700 /month /property.

That's a pretty decent ROI.


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@GlobalWealth won't that possibly hurt your AirBnB ratings? I usually see most "Superhosts" and high rating listings go overboard with the welcoming.

Maybe add a gift & handwritten card (your cleaners can leave it for you)? A bottle of wine or something. That sort of stuff is always mentioned in the highest ratings listings.

I love automating stuff too, but I'd still have someone close-by in case the locks malfunction (what happens if the powergrid goes down?)
 

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How are you going to manage the keyless entry for guests? A different code for each guest with an expiration date?
 
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@GlobalWealth won't that possibly hurt your AirBnB ratings? I usually see most "Superhosts" and high rating listings go overboard with the welcoming.

Maybe add a gift & handwritten card (your cleaners can leave it for you)? A bottle of wine or something. That sort of stuff is always mentioned in the highest ratings listings.

I love automating stuff too, but I'd still have someone close-by in case the locks malfunction (what happens if the powergrid goes down?)
I have 2 backup people close by for emergencies.

I will say the last 2 times I stayed at airbnb they were both superhosts and both were automated with no one at checkout. Great experience.

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How are you going to manage the keyless entry for guests? A different code for each guest with an expiration date?
Yes

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@GlobalWealth I recently had the idea of doing the same thing you talk about in the OP within the U.S. by renting several apartments across the country (negotiating permission with the landlords of course), and then renting them out on Airbnb.

I ran the numbers and don't see any reason why it wouldn't work out to where you could have several apartments across the country and not pay a penny for any of them (and more likely make 20-50% annual ROI's with them). After running the numbers, I fully plan on doing this in the near future within the U.S.

I see that you've done this (rented out apartments on Airbnb that you yourself are renting from a landlord), but it seems it's been in other countries so far. Do you have any experience doing so strictly in the U.S.?

Do you have any tips that you would give for negotiating permission from landlords to sublease the apartments? Or any advice for using Airbnb - increasing nightly rates, fill rates, etc. using their platform?

My plan is offer to pay a large (50-100%) of the full 12 month lease upfront as necessary to help gain permission to list the apartments on Airbnb. From there, achieving a nightly rate of 9-10% of the monthly rent/expenses and a 50% fill rate on Airbnb seems doable, leaving rough profit before cleaning services, etc. at about 50% of the monthly rent I'd be paying.

I see other people have mentioned related stuff in this thread too, so I hope it's not repetitive. I guess my question is, if you were to go this route, given your experience and knowledge, what general advice would you give, i.e. how would you approach this starting out?

Thanks so much for the thread btw - no clue how I've missed it before.
 
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Do you have any tips that you would give for negotiating permission from landlords to sublease the apartments?
The answer is just work. You will need to review the rental agreement and ensure it does not prohibit sublets. You will also need to confirm any hoa does not prohibit short term leases. Just talk to the landlords. Ask them. Many will say no. Talk to more.

Do you have any experience doing so strictly in the U.S.?
It's just a math problem. It doesn't matter what country the property is located in.

Or any advice for using Airbnb - increasing nightly rates, fill rates, etc. using their platform?
Not really. Just play around with the platform until you get the settings you like. You will likely need to start with a low nightly rate to get some guests and reviews. Once you have a few reviews just raise your prices.

I guess my question is, if you were to go this route, given your experience and knowledge, what general advice would you give, i.e. how would you approach this starting out?
Just take your time. Find the right property in the right location. For short term rentals, locations is even more important. You can have an amazing property but it may be just slightly out of walking distance to the restaurants, bars, etc. and no one will rent it no matter what the price. Travelers want convenience. You will not get rich quick doing this. Take your time.
 

hers1357

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Interesting post! I do this in the UK.. I have 2 apartments I sub-let and rent on airbnb and some other sites. It is a lot of work, but the money can be good. I've been doing it for almost a year now and renting a couple of rooms out in my own house. I'm looking to get more here asap and also automate it with key safes.
 

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I'm not sure if this has been mentioned yet (I did a search for "AirDNA" and nothing came up) but:

AirDNA.

Essentially it's a place where you can buy data on certain cities/parts of cities to tell you their activity, frequency of booking, etc.

It saved me a ton of money on potentially buying an AirBNB property in a low-activity area of Toronto, and I'm confident that if you don't use it already, it will save (or make) you a ton of money as well. The website is airdna(dot)co - and no, I have no affiliation.

First post though, so hey everybody!
 

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Have few friends who bought apartment in Canary islands. They bought in 2014/2015 when prices dropped due to economic crise in Spain and prices where way lower than right now. Anyway, you can find some opportunities even these days (there are always good opportunities).
 
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Just a quick update.

I fired my old PM that handled some of my properties. She started to fall apart in the past couple of months so I replaced her.

The new PM is doing great and profits are actually increasing month vs month.

My ROI runs around 20% average.

I am looking to add one more, maybe two properties this year.
 

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Just a quick update.

I fired my old PM that handled some of my properties. She started to fall apart in the past couple of months so I replaced her.

The new PM is doing great and profits are actually increasing month vs month.

My ROI runs around 20% average.

I am looking to add one more, maybe two properties this year.
thanks for updating
 

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Very, very interesting post - thank you, GlobalWealth - especially since I’ve been super curious about doing this but unsure of how it could actually be implemented and if I'm honest, a little scared to actually pull the trigger.
You've inspired me to look further into it and set myself a deadline :)

I think we'll be looking in some of the same cities as well - I also love Budapest and was there last month for awhile and couldn't believe how reasonable property prices still are, especially considering the rents have been steadily rising. Same with Spain, where I am currently - definitely has places I’d return to again and again and the housing is relatively affordable still, even in the capital.

The only thing that's scaring me are the AirBnb regulations that keep getting rolled out in Spain - how are you finagling
getting AirBnb rental licenses for each of the properties?

But then again, I think for me, I'd prefer to stay like 2 to 3 months a year in say, Spain, and then find a longer-term tenant for the rest of the time.

Could I also ask you how much liquidity you like to have with each of the deals? Like, for each property you buy, how much do you prefer to have in the bank to cover the costs, unforeseen expenses, mortgage payments in case of worst case scenarios?

Thanks again for sharing your experiences!
 
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Very, very interesting post - thank you, GlobalWealth - especially since I’ve been super curious about doing this but unsure of how it could actually be implemented and if I'm honest, a little scared to actually pull the trigger.
You've inspired me to look further into it and set myself a deadline :)

I think we'll be looking in some of the same cities as well - I also love Budapest and was there last month for awhile and couldn't believe how reasonable property prices still are, especially considering the rents have been steadily rising. Same with Spain, where I am currently - definitely has places I’d return to again and again and the housing is relatively affordable still, even in the capital.

The only thing that's scaring me are the AirBnb regulations that keep getting rolled out in Spain - how are you finagling
getting AirBnb rental licenses for each of the properties?

But then again, I think for me, I'd prefer to stay like 2 to 3 months a year in say, Spain, and then find a longer-term tenant for the rest of the time.

Could I also ask you how much liquidity you like to have with each of the deals? Like, for each property you buy, how much do you prefer to have in the bank to cover the costs, unforeseen expenses, mortgage payments in case of worst case scenarios?

Thanks again for sharing your experiences!
I wouldn't touch a location that required a rental license.

For liquidity, I do a lot of homework on potential income so I don't worry too much about excess cash on hand.

The properties are all positive cash flow and earning 15%+ yields.

For me I don't use the income from them to live on so the cash generally stays in the accounts.

Usually about once a month or every other month I will pull some excess cash and invest it in p2p or crypto.


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@GlobalWealth LOVE this idea! Thank you so much for this post.

I'm from the UK, and have been travelling all over Europe also, learned Spanish, made incredible friends overseas, living the laptop lifestyle! However I've been the one renting AirBnbs in different cities from different landlords, and I've seen first hand how crazy the prices can command in different tourist cities.

Even though I'm a single dude and love travelling, I have to admit it's difficult to remain consistent on my fastlane business (an information publishing business, creating course content, YouTube videos) which has generated my capital thus far, while always on the move, without fundamentals in place.

In travelling so much and experiencing the world, I've still really felt a lack of "structure". Sometimes pieces of paper going missing in transit, even equipment going missing which packing my stuff last minute before a flight, which is not great foundations for building a solid business. So I guess you could amend this strategy how you see fit.

For example, even though I can't stand the climate most of the year, buy a small apartment in my home country in UK in the least expensive way possible where my business is registered, where I speak the language fluently and family are based. Not for the purpose of renting out, but as the ultra "fail safe" with minimum mortgage possible. Use it as a base with minimal overheads to generate maximum cash flow and start investing overseas, even if it's vacant most of the year.

For example, places like Nottinghamshire, Manchester, Leeds, Southampton etc you can buy an apartment for £70k, and still be able to commute to visit family + friends.

Have you considered doing something like this? Or are you perpetually on the move? I've also totally had enough of 6 months blustery winters in the UK, but there's something nice about having something in my home country for the added security and sturdy foundations in a stable market.
 
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@GlobalWealth LOVE this idea! Thank you so much for this post.

I'm from the UK, and have been travelling all over Europe also, learned Spanish, living the laptop lifestyle! However I've been the one renting AirBnbs in different cities from different landlords, and I've seen first hand how crazy the prices can command in different tourist cities.

Even though I'm a single dude and love travelling, I run an information publishing business and create course content / videos. That is my fastlane business where I've generated my capital so far, but I have to admit it's difficult to remain consistent while always on the move, without fundamentals in place.

In travelling so much and experiencing the world, I've still really felt a lack of "structure". Sometimes pieces of paper going missing in transit, even equipment going missing which packing my stuff last minute before a flight, which is not great foundations for building a solid business. So I guess you could amend this strategy how you see fit.

For example, even though I can't stand the climate most of the year, buy a small apartment in my home country in UK in the least expensive way possible where my business is registered, where I speak the language fluently and mum are based. Not for the purpose of renting out, but as the ultra "fail safe" with minimum mortgage possible. Use it as a base with minimal overheads to generate maximum cash flow and start investing overseas, even if it's vacant most of the year.

For example, places like Nottinghamshire, Southampton etc you can buy an apartment for £70k, and still be able to commute to visit family + friends.

Have you considered doing something like this? Or are you perpetually on the move? I've also totally had enough of 6 months blustery winters in the UK, but there's something nice about having something in my home country for the added security and sturdy foundations in a stable market.
I have a home base in Europe where I spend a good amount of time.

I do not rent this one out, for now. However, I am about to rent a new apartment to live in and make my current home a short term rental.

In this market it is much cheaper to rent than to buy. For example, I looked at a new apartment yesterday that I may move to. It's 100m2, 2br/2ba penthouse with a terrace and floor to ceiling windows. It's a brand new renovation. They want €550/m plus utilities for rent, or to buy it would cost €250,000. I'd be crazy to buy at this price.

I have added 2 units this year and about to add 1-2 more (including my current home mentioned above) before the end of the year.



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