From Dunkin’ Donuts to $1.5M Airbnb Empire
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welcome to the great state, real state show. We talk about the good news and bad news, the real state hosted by yours truly, jan sister. Hey, you haven't already go go onto the show notes and grab our free e book how to buy your first investment property.

It'll help you get started in the real state investing world today. I got a special guess, Michael, find a good friend of mine and a real same investor entrepreneur, r published author in a short term rino influence. Or he and his wife jail became financially free at eight twenty seven, just one year after making their first investment real state.

And today they personally on eight short terminals that produce over one point five million, holy moly, uh, per year and growth from the linking Michael the founder, B N B investor academy, where they helped coach. I think the up done over three thousand students who helped a cofounder of home team vacation rentals in summer and designs. Michael, welcome to the show.

What's up there? Good, good wear. man. Be sure to have me on.

Yes, you are. You are the the goat, the king, in my mind, of all things, short term rental. So when you agreed to be on, I was super, but so you supposed to be on earlier, but you ditched me for the yankee's world serious game. I don't know how that happened, but i'll forgive you how I guess this one time.

Well, turns out there is the most boring game out of all the world series game, so I probably .

shouldn't have. But now, see, that's what you get for. Ditch me.

So we gotta start. I thought L B N B was dead. That's what everybody has been saying on the L B N B days.

Yeah I think, uh, I think the L B N B days where any property cash los really well are over, you know, it's just more competitive, more people enter the space, more people talk about IT online and you can still make a ton of money, but you just have to ensure that you're being different and you know how to set up and managed properties effectively.

Do you think I got to a point there for many, just as a cabyle, I do not think at all the airbase did I was that I own B, N, B myself. I think it's a fantastic investment strategy.

Do you think? Therefore, a while I was, like you mentioned, pretty much anybody could get to the game, maybe mid twenty, fourteen, fifteen, maybe all we up to and do pretty decent because they warn there wasn't as much competition cover hits and then I kind of flips the industry on its head words, I oh shoot. I can get to stand out and be a good Operator now yeah.

yeah for sure I think mid like yeah like you said, twenty tens around twenty fifteen up till like twenty eighteen. I mean, there wasn't that many crazy design properties in urban markets where there was more new to have a vacation running because most of the vacation runs existed in the gallon burgs of the world, the national park.

Things like our people are used to taking their family renting a home, but when people had an alternative option to hotels in those urban markets for bigger groups, even small groups, I think um the supply which is so little compared to the the demand and like the new demand for for a bb itself um but I mean the bigger markets to airbnb and verbal is really just like democratized, you know shorter mental hosting um for any everyday investor because you don't have to create a direct booking site initially. It's it's recommended long term, but initially and it's like all the marketing kind of done for you, as long as you have the property set up well and have good photos. So it's amazing. It's an amazing platform to connect travellers with individual s.

They do a fantastic job. I think B, N, B came out maybe two thousand and nine, two thousand and eight, two thousand and nine. I could be wrong, but think that's pretty well on bran chest. I mean, mean, they do a heck a job. Verbs do a heck of a job.

Do you think it's imperative to move all for those platforms over time the longer year in the game, I was the upside in the downside to be in a verbal airbnb compared to I have my bookings coming in off of a separate site. So i'm not at their disposal to sly both you and I. We do a lot of social media, whether be youtube, instagram, tiktok, but we were at the mercy of the owners of those platforms that they don't want to push our container, they want to shadow ban as they can happen immediately. Is that something focus, worry about the short term space? And if so, how do you how do you mitigate that risk?

One hundred percent? And I honestly IT doesn't feel like it's ever gonna a problem until that happens to you. Just like social media, like I had my cousin who's got a quarter million followers on tiktok, and he does SAT tire comedy, just like funny skits that he puts together.

You know, he makes one of everyone from all different, all the different, you know, sides of political spectrum, whatever is non political. And he just really like a band. You know, it's, you really have to be careful putting all your eggs into one basket that you don't control your destiny.

IT could be really great until the one day they pull the rock from the um airbnb and verbal, you have to be on this platform. It's like kind of like a google that's where people go to search for rental properties now like where to stay. So IT is imperative to be on there to be successful early on.

But long term, it's also really important to diversify. B O T A is the online travel agency is in which you market on and also build a direct booking uh site. Um direct booking is not in immediate strategy that you're going to be successful with.

Ideally long term. If you scale multiple properties or have really unique properties, you can start collecting e mail a build your on email marketing less from every personal at days in your properties over time. In that way you can start to expand out. Um but the risk with R B N B and i'll give you an example because it's just happened to me, we had a property IT was our third ever property. It's almost been online for but five, four years now, four, five, four years.

And we have over like two hundred reviews or near two hundred reviews just on airbnb, not including burbo, and over one hundred five star reviews in our average reviewing like four point three, which is super host status according to that, which is less than twenty percent of and we had one bad what I wanted to Better views in july. And then fast forward to september, when the hurry holie hit, we had our our water was unavailable to this property in gatt laurs. So we had to cancellation a group of gas, and that triggered an algorithm thing in R B N B to say our listing was pending removal.

And I appealed that submitting the documentation of the herky pb a ob and then fast forward a week, and IT says realistic is going to be permanently removed in november tenth or whatever. And I was like, what in the world? I I thankfully fought IT.

And I got some connections, like leading into a rapid airbnb with our home team vacation ely's management company. And I was like, you guys need to look into this. And at first the response was, note the appeal.

He marty looked at IT like there's nothing we can do. And I kind of thought of a little bit on that. Thankfully, they reinstated the listing, but they are like, this is the last time we're telling you, I like this is ridiculous.

You know there's a lot of people who are like like sub for averaging and they're like awful host. The properties are in disrepair. So long story short, like IT can happen anyone and know that can happen to me who's like i've helped there being b on board like thousands of listings, IT can happen to anyone out there. So if you got to be really careful in terms of like where you're putting all your eggs right in terms of the marketing basket.

that's scary, especially when you get a natural disaster coming to. So come on, we supposed to do here. We had had to fight that a couple towns hours and like you say, a lot times as algorithm things and then when a human looks into its like, okay, that makes sense, but is still is very scary because if they knocked you out and you have that had time to build and outside the platform, which takes tons of time for the record, but you you have to be on A B, B.

You have to be on verbal at the beginning and you should stay on there because like Michael said, that's where people like the google of short terminals. But you put yourself in a in a predicament when they decide they want to kick you off at at the same thing happened on instagram, I was walking out to a soft, ball filled microbicide play. College baseball, not far from from where we live.

We don't live too far from each other. And, uh, you'll get a kick out this. I'll walk into the sop pal field.

I pulled out my phone on my you know account and just show the soap film that i'm bout to drop some bombs tonight, turn by hit home, oh my, is a grand story. And they ban me like they shadow and me so they wouldn't push my content to anybody who went my followers. For six months, IT was in safe.

So finally I went on linked in, I went on instagram, I went on facebook and I find found the profiles of people who work add instagram. And I just started messaging people. And I kids, you not.

Two days after I did, I message fifty people, I got on shadow banks. So I don't know which one fixed IT, but is crazy. I can actually you have a so how in the world did you get into the airbnb space? I seeing pictures.

I I know your story and I know what you can. I have you the trajectory you took to get where you're today, but I ve also seen the pictures. You work in a dunk and donate.

I believe that IT was. And here you are you eight short term rental that bring in, you know almost two million dollars year. How we get there.

Yeah I think you I would both agree that first you need to really focus on your own income because that is the thing you have the greatest control over in order to accelerate your investing journey aside from finding other people's money and all that good stuff right um but long story short, I just I played college baseball, is hoping to play professionally.

Didn't work out and when that happened I had to go find a job so I was working at duncan donuts and I was working a sales gig and the sales gig whose commissioner nails preseli this awful product. I wasn't on the market, and I was like, I got to make money somehow. I just want to dance in the mornings.

I did that after never made a single commission that summer. So I had an option for a fifth year, went back to play baseball in more year than after that. Um I got an entry level sales job, basically setting appointments for a technology reseller.

You have software, uh, hardware like a stuff date, a center equipment. And that was my I literally walk in and it's like, kind of like a scene from the office. Like this is really what it's like.

It's what you picture. As a kid, I was like, excited, like great cubs. I got my phone like a laptop. And there are like, go pound the phone. I'm like, yeah, thirty five K A year and I got fifty bucks every appointment I said so i'm calling like directors of technology CIA just getting like hung up on all day was a miserable I literally hated IT first million yeah, i've i'll terrible you to driving home and I was like, man, like first time I in my life I felt like, kind of them like this is what going through the motions feels like wasn't really depression.

I was like, but this if this could turn into something really bad, if I don't like, do something so like if if I make more money will be happier, right? So I work really hard, got a promotion, made a little bit more money, bought a nice truck that was probably stupid um side on the weekend. And then I was like, A K, I make more money, i'll be happier.

So i've got a job I like interviewed network. My bottle got a job at google, and Austin, texas started make a little more money than like a month later, the same one feeling sudden. Then I start to learn about real estate by reading books, really watching youtube, listening to podcast like this, for example, and learning about a bunch of different strategies.

And the one that made sense to me was just like rental properties, right? I was like, okay, but one of two hundred boxes door for me would take me a long time. With the income making so fast for a year, I got one more job outside sales, started in good income and started saving up enough money to eventually put a dow payment on the property.

And and then I learned about short term rentals. And I was like, okay, if I could, cash flow wanted to or four, five thousand a month property, this feels way more tangible to me. So for me, I was just like the fastest way if I execute really well.

Um and as some of that was probably dumb luck when I first started to and we just went all in on our first property and within three months, the cash 7 grand profit ow our third months on A B N B alone。 And this is a property national 2 and this is twenty。 So what happened in march of twenty twenty cove IT hit and we had forty thousand dollars of future bookings cancelled like that.

And at that point in time we um liquidated our retirement accounts for one K I R X. My wife, I were all, by the way, I sold that nice try to furnace the first property, didn't rese how much I cost furnish'd. So sold, sold out of our retirement accounts, bit the penalties would ever got the second property, and we closed on that, admits all the covered mass.

And like, this is a national national. So like the city is kind of shut down. So that told me the how we ve got into IT, obviously, like we ve got through covet and we took our rests.

And I really started to pan out for me to answer your question. I was just like, man, I attend. Your goal of financial freedom became tangible within one to two years once I got that first property and saw how to Operate, how to do. And i've just really never looked back since.

So at first property was in nash will, he said around twenty, twenty, twenty, twenty.

Yes, yeah. We closed on IT at the end of twenty eighteen and then launched a mid december twenty nineteen.

It's twenty twenty four at only four years, and we're going through really one of the most mutual times in recent history, just from a you know world and national standpoint. And Michael and his wife both have been able to leave the rat race and living a financially independent life in four years. And now I think that happens sooner than twenty twenty four.

We're just in year four, and now pretty sure happened one or two years in off of owning real esta. Lot of our listeners, you know, get to started with the book richa porter, my lum, sure you ve read IT. I read at a tony times growing up, and there's a lot of different lessons you can take from that book.

But the main one is buy assets, reduce liabilities, have your assets, pay for your liabilities and to see what you've done. And in such a short amount of time, I mean, set out with a ten years goal. You been a ten years and i'll be whatever, twenty, thirty six years old, that'll be pretty good.

But you went in, you put in the work. And the next thing you know, you have income from assets now paying for reliability. We used to have to go to work every day that cubical film.

Think about what you could be doing. You went, took that income ball assets. And now IT is paying for your entire life, plus all the fun things you get to do.

We are just tell you're just at the world series. World series tickets aren't cheap. Plane tickets aren't cheap. Buying airbnb s in new york city during the world series aren't cheap.

You're able to do that all the assets because you were discipline, got focus on a certain asset class, learned everything about IT, became the best at IT, increase your income, decrease your expenses and you took action. And IT is a powerful teston to what people can accomplish. I'll just put their mind will will be right back with my bill .

of .

the welcome back to the rich set real stage show. We talk about the good news and bad is real stay. I'm here with Michael ichael story's awesome.

You increase your income, learn how to handle your money, and then you took that money. You win boat assets and now your assets pay for your life. It's literally the textbook playbook.

I want to die in the little bit of the nuts and bolts of actual airbnb space and kind of pull some stuff out of your brain strategy. So when you get started um and even today, how did you go about finding airbnb? S what do you look for? What's your buyo? X are you worried .

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Yeah, for sure. I think the amazing thing was short terminals is that the data is available on R D, N A. Some other sights online everyday is the primary when I use where I can literally go and filled or based on a revenue performance, and then look at maybe two or just four betting properties, whatever IT is.

And I can know the exact location that the top performers, and I can know, do they all have a big backyard? Do they have a hot tub? Like what amenity do they have? So I formulate a byo x based on current performance in most markets, have enough data to make a by box out of um and then I look for key things so for me it's like the monopoly board, right? This will be a few thing thing about get an L B N B.

This is the only thing you should pretend to do on this whole whole podcast to be on us to the monopoly board, right? If you have enough money to buy, board, walk or parks place, right, and then ultimately put houses in a hotel on IT, that's usually the two cards at the winner owns, right? Because if somebody lands are you and you're forking up thousands of dollars or whatever IT is to to rent, right? So you have to think about the monopoly board is a market and the the cards earlier on, just past go think of those is like studios, one bedrooms and you get around, you got part place and board worker like five, six, seven of term homes that are just fiction rental.

I would rather buy a smaller ticket starting off and be able to put a hotel on IT sooner versus buying board walk, but not having any money left to put a single house on IT and bigger the houses and the hotel as amended or professional design staging things like that because I want to be the cream of crop and whatever subset of the market I Operate in. So that's how I formulated by boxes. What did the top performers have? Those are my non negotiable als.

If not, most of the top performers have a hot tub and a pull table and, you know, a big backyard. I'm not even looking at properties or sharing with my real char. I don't even want to see properties that or within that criteria.

okay. Then the key in the secret sauces, what what are one to three things that I can add to the property? I get that very few or maybe nobody else has that's more of the visionary of like if you build IT, they will come mindset, shout, I feel the dreams.

But if you build IT, right, they will come. And that's how you can start to charge and compete on value and charge a lot of money. I never want to compete on Price in any industry Operating because that's always to be a raced the bottom in an industry where so many people are entering, just like airbnb.

So that's how formulate the byo x now terms of purchase Price. Um I buy pretty much everything on market and I just work with the local real term um that I know I speak with and I make sure they understand the bigger thing for me as they understand the local regulations. And if there's a permit process, what is that I look like there is zing is you know you can only have a sure to on these zones.

I need them to know because I don't care to go to all that research um based on revenue from my competitors, I kind of work backwards. So if properties uh that i'm targeting are doing about one hundred thousand a year, I want to get typically a twenty percent gross rental income to purchase Price ratio. So after done hundred k, my target purchase Price to be around five hundred k if that makes sense, so that those are the the criteria that I would give to the real time and they could start feeding the properties that have those characteristics in the home, the square footage of the lot size, the views, whatever IT is um that that are within that Price range.

So that's a format, the boy box. If you guys do that alone, you know you didn't have be crazy investment and business analyzer and do all these crazy spread cheat. If you do that alone, probably outperforming do really well. Yeah.

I think a lot of people get tied up on the numbers. You know what? I look for that I look just for cash for just for just for this.

I think it's a big picture thing. I love how you broke IT down. You're looking for a property um you know it's a hundred k income.

You wanted to be five hundred thousand and puri said twenty percent number so then you can just go throw that broad net out and have those properties come in. Then we can start digging. Once you find those that are closed, then we start dig in and say, OK, what is the cash flow?

Best case eno make cases. A worst cases was the re best words mid and then you could start really digging. I think a lot of people get held up on trying to run particulars numbers on every, every single property. I think that holds them back.

He doesn't give them enough views that they give the volume they need to find deals because you and I know a lot of times, but not all the time, not just like all the time, finding good deals is a volume game. You've gotta have leads coming in and so set that front. And criteria like you do with that twenty percent rule have those leads flotillas.

And we can start figure out, okay, how much we've got to put in to this. Was the furnishing going to cause I love your mindset. You said that we don't compete on Price. We're onna compete on value. So you go in every market, you go in every property you buy, you try to find the best from here you correctly, and then you want to take IT a level above that one.

Yeah, that's right. So for example, if if I I have properties in ash from north CarOlina, you know obviously the hurricanes pretty detrimental that recently, however, those properties performed really well, and we're trying to add things that are really hard for other new properties at as well.

So what's hard for any existing property to add? Well, maybe a golf simulator because the ceiling height has to be a certain height and most homes do not have the depth with, and ceiling height that you can actually put a git golf stimulate inside the house. So if I can find a property that has those, you know, attributes, and I could threw on a golf sam, I eliminate most of my competition.

One because most people going to be won to spend the money on a golf to nobody else has IT. So there's no data showing that it's going to rent Better. That's kind of be in the vision area like there's probably going to be people out there that are like, I don't have a golf simulator.

I've never even played on one. If I went this place with my family, I get to use IT, right? So you kind of have that like while factor. The other thing is going to be like external space. So let's say, like, you know, outdoor games or hot tub pull, whatever IT is outside our critical amenity.

If I can have a greater exterior space, I can spend more money to turn this into something that, just like wise users in photo, stops them in their scroll online and gets him to click and want to learn more about IT. So it's like every single amendment or piece of the design or aspect to the house that can create a memory for somebody. That's what I love about short manuals as you can influence the cash flow in a way that you cannot with long terminals or really any other type of investment. Um because people are willing to spend money on the ones of your family vacation, are willing to spend money on the anniversary with their wife or husband, right? They they want to create the memory, create the experience for themselves, always willing to spend that much more in rent, because that usually someone, the biggest liability is mortal rent.

And people are going to stop going vacation. They are not going to stop spending money on anniversary. That's always going to be there in a fear cream of the crop, which microprobe ties are.

I got to give a shout. I took our team to state your ash will place. And man, what a great design we will see.

Maybe we can put a link in the show notes so everybody can check IT out. IT was unbelievable. Me outside, we had a pick ball core with that was also a combat with a basketball core.

Then we also had a hot day outside. Then we also had a pudding Green that was outside. And you walk inside, you get this, a macular downstairs poker table.

You walk to an ark room, and then on the back side, ark room is a legit theatre with movie theatre. Shades is dark and cold. I slept there. Every I sleep in a bed that turned on the movie.

And the idea is, so hopefully they they were to to to give that senator ze, after I left my my sweet bought here, but he was, he was just a fantastic place. And so I can attest you what you preach IT. And when you're scrolling A B, A B and when our team was looking for places to go IT, call our I I am you.

You can't help but notice all of the things that come with appropriate because people are looking for an experience, and that's what you're offer when people are going to say and be the majority people. Now you do have those people who travel, who are looking for those bottom to your places. And what microsys is do not competing there. If somebody else wants to offer those low and trash places, that's fine, but they're not going to make as much money as me. They are going to deal with worse tenets.

And their listings are going to take more hits because I will get great reviews to where you are probably generally dealing with a Better client tale because you're paying high in your views are gonna Better and and obviously, the property that you buy are onna appreciate in value over time, which adds more equity to your performer, which in turn makes you more money when you go to sell or when you go to refer. If you pull a he luck out on that property from a management standpoint, what are some lessons you have learn what's what's the hard santo, for me, management was tough. I tried to manage my own when I first started years ago, and I think a lot of people do that when they first start.

And I get way Better as I went along with that. But there were some headaches that went till I just remember, you know, keeping up with the cleaning team. We had a guy show up at eleven o clock night walks in the house.

The house wasn't clean. He calls me saying a lot of not nice where drive, just little things like that. So what are some things that you really take him to account when IT comes to running a good Operation? Because you mentioned IT early today, you got to stick out with actual property and then you've got .

to be a top Operator. Yes, for sure. And it's actually one of the biggest mistakes I made early on. Again, you kind of without a mentor, whether is paid free, whatever, which I had recommend to anybody and regards what you're trying to get into, you could smash that.

You know, learning a curve down into a few months that took someone else years, you know, for the first almost entire year, I did not use software to help run the business, which was really idiotic. I just didn't even even bother to look into IT as like I have bnb message, my gas on my phone and our community with my cleaners. Well, what happens when you scaled to two, four, ten properties is you have to automate stuff or also you are going to be working a full time job.

IT can definitely become that. So the biggest thing to any new host is you have to leverage software to automate as much as possible. So property manager software, number one, you entry level product like hospitable or gusty light, for example, a bit at all sinker calendars across platform medal message or gas for ty percent of the automated messages, IT will even want to review your guess.

So does a ton of things for you. The second thing would be Price labs, where IT helps automate uh, pricing adjustments based on demand. And any day of the year.

So you say all all your customizations of them within certain boundaries, Price suttle ahead, these are really high demand is are gona rage your Price or these are low demand days were gna lower IT. So that helps you get more bookings and and generate more revenue. And then the last thing, image and cleaners.

This is a tool that I really wish I use more. And and it's got a lot Better sense to over the past several years as turn l. There's other ones like resort cleaning and some other ones like breeze way.

I think that does IT as well. But turn out the one main one that we use that's turnover management. So it'll give cleaners access to our calendars regardless where we get back direct booking, verbo booking outcome airbnb and they get notified of the booking or of a cancellation.

You can also do checks and mainland stuff through through a lot of these platforms. So that's really handy in terms of like I really, really have to communicate with cleaners other than they let me know if there is like damage or something to the property that know might need to take care of. But otherwise it's just software, software, software that can help alleviate ninety percent of the ground work that used to be necessary to Operate a short terminal.

I can test that one hundred percent because we did same thing as we started scaling. We said the only way to do this sufficiently is the gsm. And those software are awesome.

I mean, they are not perfect, but man or man, I mean, just Price of itself. When I first started, when I would manually do pricing, Michael, I would forget that a big event was coming. So like might have been in roston and so they may have uh the P G A chair ship coming uh to Q A and my my R B M B right by QAQ.

Well, I wasn't thinking a year in advance, but people who were come into the event war. And so I would have people book my place for that event, for example, for fifteen hundred box a week, or whatever IT was when the going rate was like thirty five hundred and four thousand years a week. So I would miss two to three thousand dollars because I didn't have annamite pricing center place.

And then you implement a toll like Price labs and they remove that IT knows what's going on. A dynamically sets the pricing based on events that are coming up based on if don't have a guest and the dates arriving, you know, the dates open like it's is very, very cool. And y've made IT very easy to technology.

And in the short term, spaceman may be the best technology in all of real state. I mean, when you look at long term mental, when you look at commercial, the stories that cool technology, but the the the technical comes with short terminals is amazing. You put the notes, you know some of your biggest mistakes.

Um we're quickly doing cash out refinances and impatiently investing in the two properties during the peak of the real state market. Break those down for us. Yeah.

Fisher, I don't think the cash out refuse were necessarily a mistake because I had so much equity. Some properties that hab on two of them, one of them was more expensive. B, so for context, we bought these three specific properties.

One was the second one we ever bought in mid twenty twenty, and the other one was end of twenty twenty eight. And the third one was begin a 22。 Now obviously, the little state market went up.

You know, the federal government started printing and printing and printing more money, which is great. We hold assets. And then one of them, we did a big rehab on.

So that once, specifically the last one I mentioned in twenty twenty one, we bought for four ninety nine IT a praised before rehab for five seventy five, and then IT a praised a year later after rehab. We added some score footage and the bunch of nice things, whatever, for one point two million. So I mean, you're talk to in seven hundred thousand dollars worth of new city.

Let me stop right there because people are gonna like, must be nice that you got in the right time. Listen, you can't get lucky if you don't play the game. And IT wasn't luck.

But I not say Michael got lucky, but people want to call IT luck. You not, you don't get luckless here in the games. So I just had to stop right there and said that because people talk about, well, you bought at the right time will so do the guy in nineteen, nine and eighty.

So the guy, one thousand and eighty, two thousand, two thousand and one, two thousand, all of us who are buying right now in twenty twenty four and twenty thirty four, you know, they're going to say, well, you got him back in the twenty that is the name of the game because if you look at a graph, real stay just if you now watching on youtube, i'm showing a grap that goes up IT goes up in value over time. And Michael hill on the head, the government has been printing money and they're not going to a stop. So what's going to happen to the value of the dollars going to continue declining? What's going to happen to value? But as I going to continue .

going up so you need don't sorry yeah now you're good I couldn't agree more um and I notes hilarious about like just for shadow wing or hindi everyone to look at that is I thought we were overpaying for all these properties then and I now I wish I ve bought a hundred of them.

I wish I raise money about a hundred because I would be stupid rich, right? And it's just hilarious, you know, looking back on and you'll never meet a realising stor that says they wish as they started later, tell you that right now um so anyways, we did a couple of cash A T revise. We will pull out several mean several hundred thousand dollars through those three properties and they still cash flow after pulling that money out, which is great even though they were substantially cash line.

Service was so low before now. But what I wish we had done since wasn't attend thirty one. We didn't have a time when we had to go buy new properties.

But I was just like, we are living in a campo band. We had no expenses. I was gung on a south florida market.

I was like this, diversify the seasonality of our current rental because they were slowest during the winter. Southward is busy during the winter. So we went and bought two properties.

And Frankly, I did not do what I just told your users to do a while back, right? I looked at a portion of the byo x that I didn't do the extra things to stand out even more so. We had OK designed.

We had a poor, he did poor, nice backyard. But we didn't have things that nobody else had. We kind of had the same thing as everyone.

And what happened was we did decent, but then, uh, property taxes went through the roof and insurance went through the roof. To give you an example, our most expensive property we bought for one point five million didn't do enough to stand out. Our debt services like eighty four hundred a month.

Tax assessment came non homes. That properties. I also did not know this when I bought knock'd move ten percent will increase in broward county for the ten percent for non constant.

So that's where they get the short terminal vesture there they let to do IT, but y'll get you insurance when up. So our mortgage went from like eight thousand to over eleven thousand. That's like a near fifty percent increase right on the month death service.

So like even if we cash flowed three thousand dollars a month, the more we would still be making the same profit. So we ended up that once losing money at this point. So look going to sell at verses we could reinvest into. And I think I would probably perform well enough to keep, but I just i'd rather invest that chunk of money into a property that I knows going to a print money for us, like our other ones do.

So again, you're going to have, uh, mistakes, and you gonna learn regardless, you know, when you get started or how experience you think you are until you have a couple bumps and bruises along the way, you probably haven't been doing a long enough, you know. So I i'd like to think, like our man, i'm so perfect. I head all these amazing properties. But like, you know, those were, I consider those mistakes, but i'm kind of glad I made them because now it's revamp how I think um in terms of like my investment theses and investment strategy and our latest couple properties are bar on our best performers. So if I didn't do that, maybe I wouldn't be where I am now with those those properties that are are bringing in stupid money.

You have to have those punches in the jaw. You have to because they just like you said, that really likes you thinking in a ground you makes you get back to the basics is like when you go to a slump in baseball and you can hit ball, you go back to the basics and doing you do diligence, taking time. You were just on a you on a run.

And you money was burning a hole in your park you like, well let's go get in south florida in which sounds d like a fantastic idea who wouldn't want to buy in A B B in south florida and you miss little bit to do dilly gent like the taxes. And then obviously insurance and play in general just been crazy and you get pot. But like you said, the property you ball sense in your best performing ones.

And I think that's a testable to say, hey, you don't give up when times get hard, you learn from and you get even Better. Michael, where can people find if they're interested in in doing area and piano? You guys offer service to wear your essentially find arb es for people with the White glove service. You'll have a design firm. You'll manage people's runs, how folks get to hold .

of you yeah onesta social media is great um instagram which is at M L elephant six M E L E F A N T E six and yeah would love you here for me. I love chatting with people, new season investors, whatever IT is that I mean, the real stakes space is super friendly and and it's a big but small industry kind of at the same time as where does that sound. So you're think about getting started, a highly encourage IT, whatever you're get going on to get into whatever strategy guys just go for IT. I promise it'll be worth IT change.

You like Michael, things should be on the day. Man will talk soon.

Sound good. thanks.

Thank you for tuning into this weeks episode the rich day real stay show. We talked about the good news and bad news of L B, M, B S. With Michael elephant. I'm your host, Jerry. So star, i'll see next week this podcast is a presentation of rich dad media network.