Most people don’t know that they can take out an Airbnb loan to purchase a vacation rental property. I’m so glad I did because it’s been a lucrative investment.
Did you know that a rental property in the Hamptons of New York can go for $10,000 to $30,000 a week. Yes, you read that correctly. During the summer months, NYC dwellers want to run away to the beach area of the Hamptons for some R&R and you can catch in on it like I did.
My friend told me about this, and when he told me how much money he was making, I couldn’t ignore it. He bought a small home in the Hamptons for $700,000 and has rented it out to vacationers ever since. He makes between $100,000 and $200,000 a year on it.
When I heard about it, I was skeptical but I figured I might as well try it since he was so successful. I was able to get an Airbnb loan for $600,000. After browsing the available homes at that price in the Hamptons, I realized that I wanted to invest in something a bit nicer so I put in $200,000 of my own money.
This price gave me a small bungalow in walking distance to the beach. I looked over records and did some asking around, and comparable rentals were bringing in about $20,000 a week, so I thought it was worth it.
After closing on the home, I immediately started to promote it. Almost instantly, I had it booked. People continued to call to book time at the rental throughout the summer into the fall. When things started to slow down, I wasn’t sure this was the right investment. That was until the spring hit, and I started getting more weeks booked, and the money was just pouring in again.
It took about a year and a half to pay off the Airbnb loan and my cash investment. After that, it was all profit. Amazing!
I chose the Hamptons because that’s where my friend did it. There are many other places where you can make smaller investments and still turn a decent profit, such as Florida, Georgia, South Carolina, and North Carolina.
If you’re sick of looking at meager returns on your investments, consider Airbnb loans. It’s the best way to get into rental properties without having the cash to do it.
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis Dahlberg Broker/RI/CEO
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.