$50K/Year Cash Flow from ONE Rental by Beating the Market to This Strategy
Real Estate Rookie
Deep Dive
Why did Garrett Brown transition from flipping houses to short-term rentals?
Garrett found flipping houses to be less aligned with his hospitality background and customer service focus. He saw an opportunity in short-term rentals, which allowed him to leverage his skills in guest experience and create unique stays.
What challenges did Garrett face when transitioning to short-term rentals in Houston?
Houston's Airbnb market became oversaturated in 2021, leading to a race to the bottom on pricing. This made it difficult to maintain profitability with traditional short-term rentals.
How did Garrett differentiate his short-term rentals in a saturated market?
Garrett focused on creating unique stays that offered an experience guests couldn't find elsewhere, such as geodesic domes and glamping sites, blending luxury with outdoor adventure.
What is Garrett's 60-30-10 rule for selecting a location for unique stays?
The rule states that the property should be within 60 minutes of a major city with over 500,000 people, 30 minutes from a state, national, or regional attraction, and 10 minutes from basic amenities like a gas station or Dollar General.
How did Garrett fund the initial build-out of his unique stays?
Garrett funded the initial build-out with cash he saved up, along with a business partner (his mother). The total investment for the first geodesic dome was around $100,000.
What was the return on investment for Garrett's first geodesic dome?
The geodesic dome generated $96,000 in its first year, with a 50% cash-on-cash return, making it a highly profitable investment.
Why did Garrett decide to document his investing journey on social media?
Garrett wanted to share his journey in real-time, including his mistakes and successes, to inspire others and build a community. This also helped him attract direct bookings and potential partners.
What percentage of Garrett's bookings come from direct sources versus platforms like Airbnb?
Garrett's properties receive about 65% of their bookings directly through social media and his website, with the remaining coming from platforms like Airbnb and Booking.com.
What advice does Garrett have for rookie investors looking to transition from traditional rentals to unique stays?
Garrett advises rookies to focus on creating unique experiences that stand out in their market. He also emphasizes the importance of market research, staying close to major cities, and leveraging social media to build a brand and attract direct bookings.
- Transitioned from restaurant management to real estate.
- Initially worked as a real estate agent.
- First successful house flip jumpstarted his investing career.
- Emphasized learning from mistakes and incremental gains in investing.
Shownotes Transcript