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That’s basically what I’m doing, except with a 3 unit building in Michigan. In an average month, the two AirBnB units bring in 3-4x the mortgage in revenue. Not
by fbonetti 7y ago
That’s basically what I’m doing, except with a 3 unit building in Michigan. In an average month, the two AirBnB units bring in 3-4x the mortgage in revenue. Not enough to retire of course, but it’s a nice side hustle.
That being said, our bookings been hit pretty hard by the coronavirus. We’ve hade multiple cancellations recently, and the month of April is basically wide open. We usually have an occupancy rate for 85%. I think we’ll be lucky to have 50% of the next couple months.
- amiga_500 7y agoPaying off two dwellings at little effort is a nice "side hustle". No wonder nobody in the west is working! Meanwhile the Fed pumps more money to protect banks from rentiers blowing up, while taxes go unpaid and hospitals are underfunded.
- nostrebored 7y agoWhy are you mad about buildings being used at over 85% occupancy on average?
- amiga_500 7y agoBecause residential buildings were built to be homes, not effort free income streams for rentiers.
- cycrutchfield 7y agoI suppose you are against any sort of rental property then, right?
- balls187 7y agoA short term rental isn't a rental property. It's effectively a hotel.
- cycrutchfield 7y agoFrom the perspective of "residential buildings were built to be homes", what is the effective difference?
- balls187 7y agoLooking at just the physical building, not much.
- unlinked_dll 7y agoShort term rentals to tourists isn't occupancy, it's occupation. Sorry for the hyperbole I just thought that was good wordplay. These rentals drive up rents for the people in the community and remove housing stock from the market, making it more expensive and less likely for people to purchase their home and build equity. Rent is non recoverable unlike a mortgage, even if you ultimately take a loss. Flooding the housing market with units for sale at a bargain would be great for common people trying to build wealth.
- amiga_500 7y agoAnd they should build wealth by saving their surplus value, which means adding value. If they buy land at a reasonable price they avoid paying tax to bankers via interest. Create wealth instead of appropriating it and everyone benefits!
- ac29 7y agoShouldn't the increased tourism be a net win for the local economy though? I agree its unfortunate if airbnb units increase rents, even a small amount. Finding good data isn't all that easy, but this study [0] from last year suggests airbnb was responsible for about 20% of total rent increase amounts in the areas studied. But, ignoring other potentially beneficial effects is one sided - if tourism was always bad, people should also be against building or operating hotels that could be apartments instead. [0] https://phys.org/news/2019-08-airbnb-affect-rents-housing-prices.html https://phys.org/news/2019-08-airbnb-affect-rents-housing-pr...
- amiga_500 7y agoHere is a report into the negative effects of airbnb. https://upgo.lab.mcgill.ca/publication/short-term-cities/short-term-cities.pdf https://upgo.lab.mcgill.ca/publication/short-term-cities/sho... Here is the small pox rash over Montreal: http://insideairbnb.com/montreal/?neighbourhood=C%C3%B4te-des-Neiges-Notre-Dame-de-Gr%C3%A2ce&filterEntireHomes=false&filterHighlyAvailable=false&filterRecentReviews=false&filterMultiListings=false http://insideairbnb.com/montreal/?neighbourhood=C%C3%B4te-de... Repeated ad-infinitum across the globe by a company that figured out: 1. how to put pictures on web sites 2. regulatory arbitrage of residential housing
- brandonmenc 7y agoBecause they are breaking the law by violating zoning codes which we put there for a reason.