One avenue within the real estate investment world that has gained significant traction in recent years are short-term rentals or STR’s.
You may have even booked an Airbnb yourself, or used Vrbo, another vacation rental booking app.
But is investing in short-term rentals smart in 2023?
What about 2024? What are the potential regulations that will be created? Is the amount of competition going to keep you from making as much money as you could make elsewhere?
Just because a market appears to be booming, doesn’t always mean you should dump dollars into it. Always do due diligence, research and educate yourself before investing your money.
We are going to look at the future of STR’s and whether or not the market is viable in 2023, as well as in the future.
While a new and booming business can be exciting for the economy and for the travel industry, it also draws more eyes from the government. Particularly the local government.
With new regulations emerging, Short Term Rental companies have since been required to modify their rules to accommodate the new laws, and the list of new laws grows every year.
As of December 2021 in Washington DC , a law was implemented that requires short-term rental hosts to obtain permits and limit the amount of time they rent properties every year, among other rules.
A more significant law has been put into place in Maui, where they have banned new construction of all transient accommodations, including short-term rental properties, timeshares, and hotels, for up to two years amid concerns about overtourism.
If you’ve decided to go into the STR industry, you must be willing to stay up to date with local policy and be ready to work with local governments.
In 2022, Airbnb held a $10 million give away for the weirdest or most unique listing.
One of which includes a potato…yes a potato.
There is something about staying in a one-of-a-kind place for the weekend, and this just so happens to be a shared interest among many travelers wanting new, unexpected experiences when staying in STR’s.
Going into this industry full-force may require you to think outside the box as more authentic & eccentric listings take over.
Let’s put it into perspective. There are currently over 4+ million Airbnb hosts worldwide and 6+ million active listings on the platform as of July 2023. And that’s just Airbnb! We aren’t accounting for the other platforms used for booking STR’s.
Existing STR renters & newcomers will need to differentiate themselves with unique, compelling rental experiences. This may involve offering special amenities (like the Potato above), on-site gyms or access to rental vehicles. Always showcase local attractions and activities in your posting, and do not skimp on providing quality customer service.
As the industry continues to grow, it will be important for property owners and managers to keep up with new policies and laws, and to adapt to changing market conditions.
If you choose to get into the potentially lucrative Short Term Rental market, you may want to consider unconventional housing as it attracts more renters, especially with competition growing substantially every year.
Consistent double-digit demand growth over the last six months and strong pacing through the 2023 summer travel season give us reason to feel optimistic about STR’s in 2024.
Even if the future for Short Term Rentals looks promising, following industry reports from providers like AirDNA is a great way to keep a watch on the market.
The economy is in an unpredictable, unstable period, and staying up to date on the real estate market in general is going to help prepare you financially, and facilitate smart investment decisions in the future.
Dan: Welcome to the real estate investing podcast, where we help you unlock your potential freedom through land investing, real estate investing, and entrepreneurship. Hey everyone, welcome back to the real estate investing podcast. Today’s topic, we’re discussing land flipping with a full time job. I’m your host, Daniel Apke, joined again by my brother and business partner, Ron Apke.
Ron, we both started land flipping with other jobs. I was an outside salesman. You were a basketball coach. And the good thing about this business is it doesn’t really take full time work to make a full time income.
Ron: Yeah, that’s the thing with, uh, land flipping, you can replace your W 2 income. I mean, no matter what you are, really, unless you’re making a million dollars a year in your W 2, like, pretty easily you can replace your income.
And that’s what we’re seeing people put 10 hours a week into land flipping and replacing their income within six months, their 40, 50 hour a week income.
Dan: Exactly. And, you know, I wanted to first go over what to expect when starting this when you have a full time job, because a lot of people get overwhelmed.
They ask how much work it’s not going to be 40 hours of work. So I just wanted to go into what to expect while starting a business in general, because it’s more than time. Like it depends, obviously, if you have a family and your situation and how, you know, locked up your time is. But a lot of this is mental energy that you’re going to be attributing.
If you want this to work, you’re going to be taking a lot of your daily mental energy and putting it to your entrepreneurship and putting it to your side house and putting it to land flipping. And that’s where a lot of the battle is, but we can talk about what to expect. You know, someone comes in, Ron, they have zero experience.
They have zero entrepreneurship experience. They have a nine to five. And they come in, what, what should someone expect? I mean, I don’t want to over overly complicated for someone because at the end of the day, it’s really not too complicated.
Ron: Yeah. I mean, it’s the thing about it, guys, if you guys are looking to get, whether you’re looking to supplement some income or you’re looking to get out of your nine to five, like you need to look for the best opportunity.
We, Daniel and I believe land is one of the best vehicles when you are working nine to five, because of the efficiency of your time. Like you can. Do a lot with five, 10 hours a week, but first getting in like. That first 30, 60 days, like engulfing yourself in the education is what I think is key and taking some action along the way, like not just doing education, your first 30 days, adding some action in with that.
And it’s a consistency, Dan. Like, that’s what we see with successful members who are doing this alongside a job. It is about consistency.
Dan: Exactly. And you know, being confused at first, it’s just like starting a new board game for the first time or a new anything like being confused is normal. Being overwhelmed at first is normal.
You’re going to hear Ron and I talk, you know, use these terms you’ve never heard of talk about things you’ve never seen. That’s very normal. Give it, you got to give it education and you got to give it a few months. Like after I’d say after doing it. Consistently for two, three months, you’re going to know a good amount about land flipping the business model, how it works.
Yeah. You might not know how to really buy and sell land perfectly yet, but you know how the business model works and how it operates in general, and then things get more and more comfortable after that. And then after you buy and flip a few properties, like, Oh, it’s the same process every time, always harder.
The first time deals might fall out more of the first time, whatever the situation is, you’ll get better at negotiating. You’ll get better at using title. You’ll get better at putting your properties for sale and managing leads. So over time it gets much, much easier. So keep that in mind when you guys are first starting out, it’s always the hardest by far the first time.
And then it just gets easier and easier and easier. And then after 10, 20 properties, It’s like clockwork to you.
Ron: Yeah, it really, I think those first, if you can get through those first two mailers, whether you get a deal or not, a lot of people are getting deals, their first mailer, second mailer, but if you don’t get a deal, like if you can get through and get to that third mailer, a lot of your learning curve, very far from all of your learning curve, but a lot of your learning curve is.
I would, I don’t want to say gone, but you have passed, uh, you’ve learned so much from experience from sending three, 5, 000 mailers, whatever the situation is, and you can grow so much from there. That’s what we, we see the people fall off when they have sent one mailer. They don’t have the success they wanted.
They fall off. They send their second mailer, maybe not the success. Maybe they’re being inefficient in time and they don’t have time and they quit and then they come back. Those are the people that don’t make it in this business because they don’t get to that third mailer really consistently.
Dan: The people get to the third mailer from what I’ve seen succeed almost every single time.
And that’s what it’s about. That’s what is the next topic. Next topic I wanted to discuss is life. Life gets busy. Things come up. Maybe you’re getting married in a month. That happened. Uh, Jenna, one of our members, she just got married. Maybe you’re getting married in a minute. Maybe you’re having kids.
Maybe a life circumstance comes up. Maybe you lose your job. Maybe you change your job. Things change. But the key of this business and the key of entrepreneurship as a whole. It’s just moving forward steadily. It doesn’t need to be a sprint through for two straight years or six straight months. Does not need to be.
We’re talking an hour a day, putting an hour a day towards this business, and you’ll see tremendous results. That’s seven hours a week for 52 week if you average about an hour a day. That’s what I always tell people. Average about an hour a day. Think about it, Ron. If you do an hour a day at anything, every single day, you’re going to get very good at that special, that specialization, whatever it is, if you’re shooting basketball for an hour, every single day, if you’re lifting weights or working out for an hour a day, if you’re doing jujitsu for an hour a day, do anything for an hour a day, think of how that compounds over time and you’ll see tremendous results.
So that’s what I wanted to really rip across here. Ron is. Going slow and steady is better than sprinting and then stopping, even if you can do 10 hours one day. Yes, you can do that. Absolutely. I’m not saying don’t do that, but make sure the next day you’re still getting your hour and an hour and staying consistent the whole time.
Consistency is key.
Ron: Yeah, for sure. And like, I don’t know, there’s, there’s always a reason why not. Like, there’s always a reason why you can’t get that hour in a day. But there’s just, everyone has an hour a day who’s watching this, who’s listening to this, and it’s trying to get out of their job like that hour a day, what that can do for you five years down the line.
If you really hate your job to find that damn hour, like there’s no excuse for why you can’t find an hour a day. Everyone has it, um, whether it’s no TV, whatever the situation is, there is something in your day where you can cut out an hour and invest your time into something like this to grow and to really help your future.
Because. That’s what we’re talking about with opportunity, Dan, and land right now, like the opportunity of what you can do with learning about this little niche is amazing. That’s why we’re trying to help so many people with this. You can be making half a million dollars in 2024, no problem. Like it is a very realistic goal.
If you’re listening to us for the first time, if this is the first time you’ve ever heard us talk, you could realistically make 500 grand from this business model in 2024. It’s just about consistency. Like Dan keeps saying with anything, like there’s always an excuse why not to do, but the upside of this is just amazing.
Dan: Yeah. And I came from e commerce, dropshipping, blogging sites, Amazon, FBA, rental properties. You know, I came from 12 different businesses and I got to land flipping and this was the last business we really created was land flipping. I haven’t moved on to anything else since then because I saw the level of 10 opportunity.
It was like landing on the moon. It was like I was running, you know, when I was, I just had a successful e commerce store, but a successful e commerce store will profit, you know, a really good one, 15 to 20 grand a month. And that’s what I was doing. But successful e commerce in general profit three to 5, 000 a month.
That’s like really being a successful drop shipping store in general. And, you know, you get the land and that’s one fifth of our average profit per deal. So you just need to think, how can I get one deal a month? It’ll make me 25 grand. You can easily get one deal a month. Like that is not a hard task when you break it down and understand the numbers, it’s really not that hard of a task.
And that’s why when I got the land, I loved it cause it was so cashflow heavy and I was sick of dealing with. You know, all the competition that came along with the e commerce space that I was in and everything else. And yeah, it was fun. I did well and all that good stuff. I sold the business, but in general, it’s fighting an uphill battle in a lot of these business models and people are chasing the wrong cream.
Ron: for sure. And that’s what there’s just, I see stuff on Twitter all the time where it’s like. Course, whatever you want to like people who are teaching something and like they’re talking about like their top thing Like I saw a face like faceless youtube ad and the guys like my top channel is making ten thousand dollars a month Which is great, but it’s like if that’s the high end of someone who’s teaching that business Like it’s just not the opportunity level like you want your high end To be half a million dollars a month, a million dollars a month.
And that’s the reality in this business. Like there are people doing that and they’re doing two, 300, 000 deals every time. But, um, I don’t know. It’s just, it’s, it’s about when the people listening, Dan are trying to get out of their job. Like it’s about finding the right opportunity. And like, like, like we’ve said time and time again, in this episode, like land, the opportunity within land is just incredible.
Dan: It is. And, and let’s talk about keys to balance for those who are committed. They’re like, all right, let’s go. I’m starting out. I just started within the last few months, maybe six months. That’s in a, in most of them, almost all of them will have jobs still. Let’s talk about keys to balance your entrepreneurship life in nine to five.
Like, how can we get that one hour a day? How can we get that consistency? What kind of education do I need? Where do I need to be showing up?
Ron: Yeah. Um, yeah, it’s, if you want to invest in education, great. If not, It’s going to take a little more time and you’re going to have to really put a lot of time into listening to podcasts, listen to YouTube, watching YouTube and trying to piece things together a little bit.
Um, but it’s about learning like this is a new niche, even if you’re coming from rental properties. Even if you’re coming from house flipping, this is a new niche. Maybe you can bring over some of the marketing skills to get deals, but the niche behind it, the niche of land investing is completely different.
So it is about engulfing yourself really into education. Learning from everyone I think is really important and then taking action.
Dan: Exactly. And the community is really big for starting any business. I think if you have the right people around you, you’re not going to be fighting by yourself. You have supporters, you have people to network with, you have people to talk to.
So get in a community either way. Ron and I have a free discord that everyone’s welcome in. Then there’s a paid one too, obviously. But even if I tell people from other communities or people who are on consultations and not ready to join us to just get the most of our out of our free community, because the fact is there’s 2500 investors in there on and and taking advantage of that and hopping in our calls.
We do free calls all the time. So I’m not trying to sell anything that we’re doing here. I’m just trying to tell you to immerse yourself In a community, get mentors like all that stuff matters. When I first started in e commerce, I was in a community. I bought four courses. I was in a community. I bought a Google ads course about an e commerce course.
I bought a couple of dropshipping courses. I took them all and I executed off all of them. That’s the most important part. I didn’t buy them without executing. I executed off every single one. Then I got in a community and I paid for mentorship. That was really expensive to me at the time. And that stuff helped me level up and we still pay for mentorship to this day.
And I’m still investing in communities to this day. And it’s a nonstopping educational curve, Ron, because the company is only going to grow when you grow. So you got to immerse yourself in the communities and educate yourself. And it just comes back to that consistency, putting an hour in every single day in the community, being on the calls, all that stuff really will pay dividends at the end.
And then you’ll get that financial freedom you’re looking for, but it doesn’t come easy and it doesn’t come without consistency.
Ron: Yeah, and I like, I tell people, we have people all the time, like this is their second, third course they’ve joined and it’s not really for the course, not as much for the education as for the community, like coming into a group, a lot of people sell courses and it’s just the product, like it’s a product thing, I think 75 percent of our value.
Yes, our course, our education is very valuable, but I think the biggest value is the community, the deal funding, the bigger deal possibilities within, um, I don’t know. I, I think that’s 75 percent of the value is being around people who are doing this and kicking ass and land flipping, I think is a huge value.
Like if you surround yourself with the right people, people who are doing big deals, people who are making big money in this business, naturally, you will make big money in this business.
Dan: And think about if you weren’t in a community, like, and things are hard and you want to quit. And you’re like, am I doing this right?
Like, I think I’m doing something really wrong. And you’re like, am I doing things right? And you’re checking and Everything seems, you know, you think you’re doing it right, but you don’t really know, but you’re in a community now and you’re running it past people. And you see this guy’s making, you know, 50 grand a month and has been for a while.
And that’s where you want to be. So he’s kind of your mentor and you’re working and talking to him. And you’re like, Hey, I’ve got a deal in three months or two months. What’s going on? Can you help me talk through my processes? And then he tells you, he’s like, listen, it seems like you’re doing everything right.
Keep moving forward. You’re going to get that deal soon. You just gotta, you can’t pull back at this time because these times happen. And he gives you his experience a little bit with how that, how those pauses in business can happen at times. And then you keep moving forward instead of quitting and having no one to resort to.
It’s kind of you feed off the community and you learn from them and it gives you, it gives you the ability to see the future even in hard times, I think. But I want to touch on why having a job can take you to the next level or can help take you to the next level because there’s a lot of people who will quit too early or, you know, you also see the reverse effect around people quit too late and then it takes from them.
But there’s a time people can quit too early and having a job. Can help get you to that next level because now you don’t need to pay yourself out of the business You don’t need to get yourself insurance. It’s the basic stuff But I wanted to say that before we end this episode It’s because a lot of people will pick is they’ll start giving themselves ten thousand dollars a month That’s ten thousand dollars.
You could have paid for your own deals. You could have put you know Sent out twenty thousand more mailers You can do all these different things and fuel the fire fuel the business. You want to throw all your income That you’re making from land flipping back into it until you really, really get things rolling.
And that’s why having a job, I think can help get you to that next level even quicker than if you don’t have one.
Ron: Yeah. It can give you that security as well, where like, you feel like you can go on and like, okay, if this fails, like for whatever reason. Uh, like I, I’m okay. Like I have this security, um, not saying that’s always a good thing is having something to lean on.
I’m kind of the opposite where I want to be able to go all in. I want to be forced to succeed. But that being said, like, like Daniel saying, like having the necessities, being able to put your income back into the business and not have to pay rent with your land income. You can pay rent. You can pay your mortgage with your W two income.
You have health insurance coming from there. All this other income that’s coming in. Throw into deals now, instead of that 50, 000 deal that you needed to get deal funding from, and you only, and you sold it for a hundred and you only made 30 or whatever it is. Now you can buy that next one with that, uh, profit because you have a W2 income and you can put that money and make that 50, 000 opposed to making 30 or 25, whatever it is with the deal funder.
So the ability to scale quicker when you have that, I don’t like calling it security then, but when you have that W2 job with it. Uh, just, I, I, I see a lot of people, like you said, who might quit too early and go all into this too early. And then they’re a little more passive or they’re not as aggressive in this business.
Dan: Yeah. Because you look at that 10, 000 as that’s going to get me through the next five months instead of looking at it, like that’s my mail money and going to get me five more deals. And that’s, that’s where it’s, it’s just a philosophy. It’s a psychological change. I think from when you quit, like Ron said, for the whole security, having back, you know, having all your bills paid for through your income, it just helps take you to that next level.
Now once you start making good, good money, and there’s a lot of people in the community quitting their jobs at this point, then you, you know, When you have, when 10, 000 isn’t much to the business anymore and you can pay yourself that salary, which will happen, then, then you’re talking a little different game there.
But at first, you really, really want to fuel the fire and fuel what’s working as always. Thank you for joining. Please do us a huge favor and like and subscribe our YouTube channel and share this with a friend. It really means the world to Ron and I, but more importantly, it could help change the life of someone else.
Thanks for joining and we’ll see you next episode.