19 Mar How to Make a 6 Figure Salary Using Airbnb While Working From Home
I’ve been consistently making a 6 figure salary using Airbnb. The business model that I teach at Passive Airbnb is a simple one.
It’s called Airbnb Rental Arbitrage.
Have you heard of it? Check out this blog for an introduction to Airbnb rental arbitrage. I am not the only one that’s benefiting from this business model.
My story isn’t that different from everybody else. I began my journey by climbing up the American corporate ladder, getting better as I progressed. With my improvements came better cash flow and roles.
When I first started, I interned for 3 months working for a local start-up in exchange for “experience.” I lived on my credit card for 10 weeks because I worked for free. (Looking back, I should have asked for some kind of compensation).
Then, things started to change for me.
My first salary year was 40k + commission, the second year was 50K + commission, the third year was 75k + bonus.
So, after almost 4 years of climbing, I burned out. In my last standard job, I had been pushing 70+ hours a week.
It was horrible.
I literally broke down from the stress and my life plunged into a downward spiral. So, I started to experiment with business ideas. What really helped was Tim Ferriss, the author of 4-hour workweek.
I knew that I wanted a job that was low-stress, not location-dependent( no commute to the office), and most importantly, profitable.
What is great about this business model is that it is completely arbitrage-based! It means that you will not have expensive overhead like a mortgage in order to Airbnb your property.
What is a 6 figure Salary
A 6 figure salary is an income of 100,000 dollars a year or above. In my case, I’ve been consistently hitting 10k+ a month, so that qualifies me in the 6 figure category.
Of course, there are lots of different ways to make a 6 figure income. You can follow Pat Flynn at SmatPassiveIncome.com, or start a digital agency( which I don’t recommend), or even a drop-shipping store.
I experimented with a drop-shipping store on eBay and I can tell you that the results were not as good as Airbnb. At the end of the day, the profit margins were just too low. You can read more here.
How to Make a 6 Figure Salary from Airbnb
In order for this Airbnb hosting business model to work, you’ll need to understand a few things:
- Market research: how to find a profitable area
- Negotiation: how to find landlords that are willing to let you Airbnb their properties
- Optimization: how to optimize front house and back house so you can remove yourself 90% of the time from running the business
The Fastest Way to Do Market Research
Go here for a quick estimate. This new tool came out at the beginning of 2017. You can literally get a rough estimate in 2 clicks. Pretty efficient, right?
While this tool is great for a high-level research, it doesn’t tell us how much we can charge per night, how much our neighbors are charging, and more importantly, how many listings/competitors are in your area?
You can check out my other blog posts here where it will teach you a more robust way to do market research.
How to Negotiate with Landlords
For most of us, finding a permissible unit to host on Airbnb will be the hardest hurdle as it requires a ton of time and careful vetting.
Recently, one of my readers emailed me to tell me that his unit got shut down only after 2 months in business.
Because he didn’t tell his landlord and they found out.
From that email exchange, I knew that my next post will be about my past experiences negotiating with landlords. My goal is to help you avoid getting shut down and win over your landlord’s approval. I have read a few blog posts on how to best negotiate with landlords, most posts only talk about the financial tactics.
In this post, I will cover the conventional tactics as well as the unconventional tactics.
How to Automate your Airbnb
Well, we can talk about this once you get your first Airbnb up and running!
If I haven’t lost you yet, then you should definitely go check out the blog section. You will have lots of free information on how to start.
If you’re interested to join my waitlist for my premium e-course, then you can sign up below!
Bonus: check out my 121+ most profitable ideas that you can start from home.