Are Airbnbs finished in 2023?

Transcript of video:

So I got done talking with an agent in Denver, Colorado. And uh, also they do deals in Salida and Salida unfortunately doesn’t have, you’re not allowed to have short-term rentals there anymore. And it’s a bummer because I was thinking about buying short-term rentals in slide for a long. And this is just for the Colorado market.

It’s not including, you know, uh, Indianapolis or other markets I’m interested in buying in and actively doing deals in too. But when I think about that, I go, what’s going on with short-term rentals and what are my thoughts on if this is still a viable strategy? And it is absolutely a viable strategy still.

But the, the thing you have to really consider is you have to look into the regulations. And what a lot of people, this is actually, if I really can put it in one sentence, it’s don’t be a pioneer with short-term rentals. Don’t be a pioneer. You know, if you’re, if you’re in real estate investing, just the best thing to do is really stick with tried and true methods because they’re not really gonna disrupt much.

I mean, everything’s the same, you know? And, and let other people learn from other people’s mistakes first. Let other people, Take the chance and go through the heartache and go through the process of trying to change something. Because with Salida, the thing about that is I go, okay, the people in that town must have fought like hell to make sure that short term rentals weren’t go going to be a thing.

And so if that’s the case, then why, why even go off that? Why even go through that fight? It just doesn’t make any sense. There’s no reason to it. Uh, to do so. In my opinion, I’d rather just look for the markets that other people put the work in at this point, because it’s not like, I’m not doing other kinds of deals.

You know, there’s fix and flips happening, there’s transactions still occurring. So it’s not a desperate move. It’s, there’s no motive to have to make money super fast or anything because. short-term rentals, in my opinion, should be a long-term game and a long-term strategy anyway. They shouldn’t be something, it’s not a fix and flip.

You’re not doing it for like 50 grand your first month. You know you’re doing it for at least a few thousand, you know, to $4,000 your first month, and uh, that’s a fantastic month. You know what? Why you shouldn’t really expect. These YouTube influencer kind of returns like, oh, I made $20,000 this month.

And it’s like, well, yeah, after you’ve Airbnb it for nine months and. The brand got there, the reviews got there and you actually built up a business with they, well, sure, yeah. Now you’re making 20 grand a month off that one Airbnb, and it took a while for you to actually get systems going and a team and everything.

It takes time. And that’s the thing too with short-term rentals and media term rentals now, is people have to be in the mindset of understanding like it, it always takes time. You have to. Have a long-term mindset and not enough people do because they get into real estate investing. For the trendiness of it, the, I just want to tell my friends, I have Airbnb, or I just want to put in my Instagram headline, Airbnb host and the things like that, and if that’s your reason, then.

You know, it’s like what I say with other strategies. Every time there’s impure motives or inestimable actions done in real estate, people get hurt and they end up losing. And even if they happen to make it, they get burnt out because it’s not what they thought it was. They didn’t really understand. It does take work.

It takes time. And with Salida though, it was a big shocker because I haven’t checked out that market in so. I just haven’t, I’ve been paying attention to major cities in other states, and so as I’m moving, uh, west, as I’m moving west from the front range of not just focusing in Fort Collins, Denver, Colorado, Colorado Springs, and I’m just noticing a lot of these markets there, there is a lot of these markets.

There’s opportunity that’s, uh, that’s. That I could have took advantage of and it’s fine, you know, but you adjust and adapt. And short-term rentals are fantastic because Brian Chesky, the CEO and co-founder, one of the original ones, he’s, he’s a fantastic ceo o amazing business entrepreneur, a bit of since 5:00 AM So we’re gonna do this video on one take, but yeah, it’s like five o’clock, right?

And I’m not even tired. It’s probably just because, um, it was just a busy day or something, but . But yeah, I’ve been up since five, so May maybe, I don’t know. I am a workaholic, so for me, I just, I don’t know, you know, maybe I yawn because of recording these videos, , but we’re gonna do this in one take. So Brian Chesky, he is a fantastic entrepreneur.

One of the best. I think he’s the. He, along with the other two co-founders, created the best, um, how do I put it? Not hack, but the best, uh,

real estate deal ever done in terms of it was the best real estate deal ever done, uh, as a disrupting service, sort of like, uh, with what Uber did to taxis. And vehicles really, you know, it’s, it’s an ultimate hack I guess. I guess we can call it a hack and, uh, I think it’s not going, in a way, it’s not going away anytime soon, you know, it’s just make sure you buy right.

Make sure you actually see what the regulations are. You know, in Denver you need a license to do it. And they are not against it. It is just there’s regulations, there’s fees you gotta pay, there’s things you gotta do to make sure you actually treat it like a business and run it properly. And that’s totally fine.

I actually want that. I don’t want to be the pioneer trying to be. The first, you know, the first to invest all this time and money just to get a city to like short term rentals. Like they’re either gonna like it or they’re not. And if you have too many people in a, in a zip code or in a city who are against it, to the point where like Salida.

They want nothing to do with them. Just don’t even, just don’t even worry about it. You know, in my opinion, there’s other things. You can buy a rental property for the long term in Salida. It doesn’t have to be a short term rental. And, but I think the reason why it goes back to, um, one of the, the two emotions that drive real estate, for the most part, it’s greed or fear as far as when things go extreme.

And with it being an extreme seller’s market, there was an extreme g. Being committed, I guess, , uh, the past two, three years. Five, actually since 2015. It was slow, but surely, uh, we’re at the peak of the greed. And we were since last, uh, at least by last June. It’s slowly fading out a little bit. People are starting to realize like, okay, don’t be so greedy because you’re gonna make stupid decisions.

And that’s the problem with short-term rentals. I see the biggest problem is not the strategy. It’s people being too greedy and thinking that you have to force so much income out of one house because they’re not true real estate investors. They’re not thinking about 500 doors, 4,000 doors. They’re not thinking about that at all.

They’re thinking, I have bills to pay, so I’m gonna buy an Airbnb to fund my lifestyle. And they’re thinking too. You know, they’re trying to create 20 grand of income off one deal per month. It’s like, that’s just, I mean, unless you have, it’s possible with some Airbnbs for sure, there’s people making much more than that, but they’re in really good locations that are really good in demand, that they bought in good timing or just waited it out.

They’re million dollar properties. You know, it’s not, if we’re talking, you’re gonna be making 50, a hundred grand in cash off one Airbnb. And, but these YouTubers, these stupid YouTubers, you know, they, they make, they flaw and make. The real estate market, not what it is, and, but if you are, are of the mindset of thinking, Hey, this Airbnb can cover two of my bills, it can cover my car bill, and it can cover all my utilities with my house.

It may not cover your mortgage or your rent, but you’re kind of like, if it could just cover half of my monthly income or my monthly. then. Yeah. You know, it’s like then cool, go ahead and go after it. That that makes sense. Like that’s a healthy mindset going in. But if you’re coming into real estate thinking, I need to become rich overnight off One Air, one Airbnb, then it’s not the right strategy for you.

Cordially,
Adam Macias
303-997-2045
https://adambuysdenverco.com/