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My $11k/Month on AUTOPILOT | Airbnb Subleasing Property Part 1 of 3 | Jorge Contreras - YouTube
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This Airbnb makes over $11k a month on autopilot聽
and i don't even own it come check it out聽聽
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hey everyone my name is Jorge Contreras and聽
i've been an airbnb entrepreneur since 2017聽聽
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over five years now and i have grown my portfolio聽
to over six figures a month and it's completely聽聽
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on autopilot and today i am filming a three-part聽
series on how this sublease right here a property聽聽
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that i do not own makes over 11k a month the first聽
thing i want to talk about is how i actually found聽聽
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the property so one of the most popular websites聽
out there is zillow.com i went in there i was聽聽
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looking for a three-bedroom two-bath single-family聽
home with a minimum of 1100 square feet or more聽聽
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why you might ask because that actually allows聽
me to maximize the occupancy which means i can聽聽
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charge more per night and ultimately have a higher聽
revenue a higher occupancy and ultimately a higher聽聽
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profit i called the owner as the phone number was聽
listed on the property and he had mentioned to me聽聽
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that he actually already had an applicant that聽
they had uh accepted and they were going to move聽聽
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forward with the lease but i decided to follow聽
up about a week later just to check in on the聽聽
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status because you know when people are renting聽
properties they file out of the app process聽聽
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just like people file out of escrow when they're聽
buying property so i was living in possibility聽聽
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called the landlord and he said you know聽
what they actually just fell out of the app聽聽
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so he said why don't you come check the property i聽
came i looked at it which i'm gonna give you guys聽聽
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a tour in part two but it was perfect guys this聽
property was exactly what we were looking for it's聽聽
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new construction so that means we were gonna have聽
basically zero or very little deferred maintenance聽聽
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as time went on the property is uh four bedrooms聽
three and a half baths 1800 square feet and it has聽聽
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it's got plenty of parking as well and it also has聽
a garage which we also turned into a game room to聽聽
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be able to create a staycation experience the rent聽
on this property is a 4 000 a month so when we聽聽
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acquired it the agreement was 4 000 for the first聽
month and then 4 000 for the deposit it did come聽聽
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with some appliances mainly the refrigerator and聽
the stove everything else like furniture supplies聽聽
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appliances all the smaller appliances decor and聽
photography was obviously part of our upfront聽聽
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capital to be able to get this property up and聽
running there were three objections that i needed聽聽
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to overcome when providing a solution to be able聽
to rent this property with the owner and i hope聽聽
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you guys are taking notes because one note takers聽
are money makers but two these are the top three聽聽
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objections that you're gonna get when speaking to聽
a landlord or a property management company when聽聽
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it comes to renting their property and using it聽
as a short-term rental and number one they wanted聽聽
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reassurance that i was going to be able to pay the聽
rent regardless of how well or how not well we did聽聽
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with our airbnb business so in the lease agreement聽
we wrote that we were going to set up the property聽聽
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on autopay two days early so no matter what they聽
would get their money every single month on time聽聽
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the second objection that they had is hey what聽
about any repairs like what if somebody damages聽聽
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inside or makes a hole in the wall or what if they聽
mess up the floor and so in the lease agreement we聽聽
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also wrote that any incidents any damages that聽
were directly caused by my guests i would be聽聽
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responsible for and the reason i feel comfortable聽
doing that is because in the airbnb you know as a聽聽
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company airbnb provides a one million dollar聽
host guarantee policy where they can actually聽聽
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you know protect you in the event of any of聽
these incidents but even before that kicks in聽聽
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just like when somebody stays at a hotel uh聽
they collect you know when you stay at a hotel聽聽
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they collect your credit card and if there's any聽
incidentals they will charge a credit card work聽聽
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well airbnb does the exact same thing and we聽
have the ability to charge the guest credit card聽聽
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up until 14 days after they check out so i feel聽
comfortable putting that in writing to give them聽聽
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peace of mind the third objection that they had is聽
hey you we know we used to live in this property聽聽
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and we want to make sure that the neighbors聽
are taken care of we don't want them to feel聽聽
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uncomfortable we don't want to have parties or聽
events or anything that's going to you know just聽聽
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disrupt and take away from their everyday you聽
know life and so we also put in writing that聽聽
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we will make sure to introduce ourselves to the聽
neighbors everybody you know on the left on the聽聽
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right in front and behind us because those are the聽
people closest to the property and make sure we聽聽
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personally introduce ourselves to them tell them聽
that we're going to be running a short-term rental聽聽
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business however there's no parties no events we聽
have quiet hours cameras noise sensors everything聽聽
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to be able to run a tight ship we exchanged info聽
with all of the neighbors they were like hey okay聽聽
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you know it sounds good a few of them were kind of聽
like ah well let's see how this goes but you know聽聽
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after a couple months you know with the system聽
that we have in place you know to be able to avoid聽聽
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you know bad guests everybody's been really happy聽
now it's been over three years and the only reason聽聽
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i came to the property today was to actually shoot聽
this three-part video series one of the things聽聽
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that i love about this property is the location聽
we are right next to downtown los angeles and if聽聽
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you guys are familiar with downtown LA right you聽
got the convention center the staples center which聽聽
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is now krypto.com so there's always conferences聽
events weddings all kinds of events and so having聽聽
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this airbnb right next to the downtown it allows聽
us to have basically a high occupancy year round聽聽
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and so we have about an 83 percent occupancy when聽
we first started leasing the property we did a 12聽聽
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month lease with the option to renew and again聽
that was towards the end of 2017 it's been about聽聽
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three years and we've been continuing to renew聽
the lease and we've been able to create a very聽聽
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strong relationship with the owner and he's even聽
referred some other properties to us as well the聽聽
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other thing that i really like about the property聽
is that in the front there's a lot of parking for聽聽
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you can park actually up to four vehicles聽
and that's always really important because聽聽
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some really busy area especially when you're near聽
the beach or a downtown and many popular areas of聽聽
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the u.s parking is always an issue so make聽
sure you get a property that has parking for聽聽
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a minimum of two vehicles there are typically five聽
things that i look for in a property to be able to聽聽
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sublease it number one it must be a three bedroom聽
two bath 1100 square foot or more because again聽聽
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that allows me to be able to host 8 to 12 people聽
the property allowing me to maximize my cash flow聽聽
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and this property obviously meets that criteria聽
the second one is that it must have ac and heat聽聽
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number three the property must be renovated this聽
property is actually brand new construction so聽聽
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that was a huge plus because one of the challenges聽
that you'll experience when you rent a property聽聽
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if it's not fully renovated and there's a lot of聽
wear and tear that's only going to get worse over聽聽
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time especially as the years go by and eventually聽
people will start to complain and maybe even ask聽聽
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for partial refunds because think about it we聽
got this property three almost three years ago聽聽
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and when we took the pictures it was brand new聽
construction i'm here almost three years later聽聽
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to film content and i'm like man we need it we聽
need to paint this place right we need to make聽聽
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some upgrades and so the pictures don't reflect聽
what it looks like today and that's one of the聽聽
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most important things it's actually one of the six聽
categories in which somebody leaves you a review聽聽
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it's the accuracy right so hey um how was the聽
experience relevant to the pictures like was it聽聽
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accurate what were the pictures in the description聽
exactly what the experience that you had聽聽
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and if it wasn't then obviously that can impact聽
the overall review and so it's very important聽聽
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to have the property fully renovated whenever you聽
take over a lease and number five which is really聽聽
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more of a bonus is appliances which again this聽
property did have a refrigerator and our stove聽聽
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which kept you know a couple thousand dollars in聽
our pocket but everything else we had to uh make聽聽
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that investment upfront and that's it for this聽
video guys for part one of three make sure you聽聽
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guys watch video number two and number three where聽
i'm gonna be walking you through the property聽聽
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going over the strategies and also talking about聽
the numbers and what our monthly profit actually聽聽
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is with that being said guys make sure you guys聽
subscribe turn on the notification bell and make聽聽
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sure you guys like this video and comment with聽
any questions down below see you on the next one
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