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Gluch Group | Why The Blade Runner Should Have Bought An AirBNB
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Why The Blade Runner Should Have Bought An AirBNB

Why The Blade Runner Should Have Bought An AirBNB

Last week my wife and I made it through 2/3 of the new Blade Runner 2049 movie. Two hours in Harrison Ford still hadn’t shown up, so we looked up the running time and realized the film ran longer than our babysitter did! So we headed out early, and on the ride home I commented to Brynne about how most movies about the future paint a pretty grim picture. Hollywood seems to convince those of us alive today are making lots of bad decisions that will lead to a much worse world in the future.

My question to you, today, is this: Are you making decisions today that future you will be excited about, or is Hollywood right about you?

Perhaps if all of those characters in the movie who were alive in 2017 had mad some better investments in their future, things would not have turned out so bad. To make this a bit more real, practical and scary, think about the people you know who have died. How many of those people died with plenty of extra money and resources? I have flipped lots of houses throughout my career, and we purchased many of those homes (including our latest Airbnb project) from estates. This just means that someone died and gave the house to the kids and it was such a mess and so full of junk that the kids sold it off-market to an investor like me who could deal with cleaning it all up (see pics below).

I’m not here to judge anyone’s life, and I have no idea what trials and challenges any of these people faced. However, I do want to make a plan for myself that involves finishing this race with more than an outdated house full of crap my kids have to get rid of.

Now To The Point, What’s This Gonna Cost Me?

The reason people don’t invest in the future is that it cost’s them something today. Since I started blogging about investing in Airbnb homes, I’ve had lots of calls from people who want to do it. Their first question is always the same “how much does it cost?”

Good question!

Here’s the simple answer with a more detailed explanation coming in the next post. If you want to BUY a home to do this with you, have two options.

  • The $40,000 option:
    Buy a $100,000 condo. This is about as cheap as you can possibly get in. To get a place worth actually renting out will cost you 100k at a minimum. You can borrow 75k of that from a lender (at amazingly low rates right now), but you’ll still need 25k as a down payment, and about 15k for closing costs and inexpensive gently used furniture.
  • The $80k option:
    This is the sweet spot if you’ve got the cash. 80k is enough for a 25% down payment on a 200-300k home and some great furniture. We are finding that the numbers on these homes work very well. How well?

 

So How Much Money Will I Make

A lot!

Right now you are early. The party on these has just begun, and the barriers to entry are steep. Most people don’t have 40-80k lying around. Competition will likely drive these numbers down but we see cash on cash returns even without counting on appreciation north of 20%, and that’s assuming you hire a property manager and are hands off. Rates jump north of 30% if you are to self-manage.

So, like pretty much everything in life what you get out is proportionate to what you put in. Buying a short-term rental home may cost you a few pesos but just imagine how happy future you will be that you made that investment today. Don’t be the Blade Runner, decide today to invest in your future one way or another.

Stay tuned to get more specific as I dive into these numbers in the next post. But don’t wait! Contact us today at 480-378-6700 or [email protected] to learn more about how you can get started!

 

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