If you've been thinking about investing in Airbnb… but honestly you feel a little scared you might lose money — you're not alone.
What if I told you they couple who's story we're sharing didn't plan to start an Airbnb until their accountant told them to? And within months, they launced a property that made over $73,000… and is now booked out at over 90% occupancy.
Read on to learn exactly how they went from hesitant investors to running a profitable Airbnb that's already covering their mortgage — and how you can shortcut that same path without the overwhelm.
We're breaking down the exact steps they took — from choosing the right market, to analyzing the numbers, to setting up a property that guests can't stop booking — so you can confidently take your first (or next) step toward financial freedom!
Topics discussed in this episode:
- Why short term rentals beat out long term rentals on tax benefits
- The real fears that stop investors and how to push through
- How to choose the right Airbnb market, property, and layout for maximum bookings
- What it actually takes to set up a high-performing Airbnb in 60 days
- The biggest keys to success most new Airbnb investors overlook
Host Coach Airbnb Podcast Episode 128 Show Notes:
If you've been thinking about investing in Airbnb, but honestly you feel a little scared you might lose money, you're not alone. What if I told you the couple in this episode didn't plan to start an Airbnb until their accountant told them to, and within months they built a property that made over $73,000 in just six months and is now booked out at over 90% occupancy.
The Airbnb Investing Journey That Started Looking for Tax Depreciation
How did you guys get started in Airbnb investing? At the urging of our accountant. We needed some tax write offs and our long-term rentals... we don't have a good depreciation schedule there. And our accountant told us that really the only big depreciation left was short term rentals or Airbnbs.
What do you think your year one revenue's gonna look like? From the third week of June last year to the end of the year, we did $73,001. Okay, so that's basically half a year. That's amazing. Is your accountant happy? Yes. This year, right now, on the books we've either received it or it's booked $84,046. That's amazing! That's what everybody wants to hear. Yes. It's a little scary.
You do have to do your due diligence. If you can educate yourself, whether you read an Airbnb investing book, listen to a podcast, get an Airbnb coach. You need to know what you're doing. There's just so much opportunity and enjoyment in the investment. I'm passionate about it, but so many people ask me, "why do you do this?" I'm like, "it's the most amount of money we've ever made for the least amount of work. It's just a good thing."
We're going to have to start looking at number two. We're sitting here at March 31st and our mortgage is more than covered for the year. Oh, that's amazing. Everybody wants to hear your mortgage is already covered a couple months in, on a brand new place in Gatlinburg, so, good for you guys.
What were your goals with this Airbnb? Did you set out wanting something tiny? Did you want something big? Did you want something you could use too?
Yes. And yes. The goals were obviously gain a tax advantage and have it pay for itself. I know that was kind of a big ask, and we looked in several different areas and ended up settling on Gatlinburg because of a year-round market. We actually made an offer on a smaller house, but we couldn't get together on numbers. And then, our real estate agent took us to the current house and said, let me show you what, just a little bit more money will buy you as far as view is concerned. I was hooked at that point. Tammy was nervous. And I was skeptical. It was a new build, so it was a brand new construction. We went above the budget, but I think it's paying off.
I deal with numbers every day, as long as the numbers worked, I was comfortable with it. So we regrouped, worked the numbers and ended up making an offer. That's a great point. You know, it doesn't matter if it's $200,000, $400,000, $800,000, the return is what we're looking for, right? Yeah. And I've seen pictures of your Airbnb. It is absolutely beautiful and your views are breathtaking. Decor - Tammy gets all the credit for. Kudos to Tammy!
Airbnb Investing Fears
What fears did you have as you began, your Airbnb investing journey? So I am not a risk taker. I'm comfortable, everything is good. This one, on the other hand, polar opposite of me, he's a risk taker, business owner, not afraid to step out of there kind of guy. It made sense, but I'm just a more conservative type, you know, just go along happily and don't put myself out there in risky situations. But I have to say, he did due diligence for sure. Figured the numbers, looked at different cost of homes. Determinted what that margin looked like if we stayed booked for this period of time or this percentage of time for the year. So, I had to believe in the numbers and they're working, so that's good.
So what I'm hearing is your big fear was losing all the money that you're putting into this investment. Yes, It was a big investment. And we're not in our twenties or thirties anymore. So that was really my fear. And trying to find something that pays its way.
What, out of all of the things that you did to create this stunning Airbnb, what was the hardest part of your process? For Tammy, it was probably pulling away for the last time before it went on the market.
I feel you, Tammy. It's hard. I just made this perfect, unbelievable space and now I have to share it with strangers. When we were looking at properties that were furnished, there wasn't that tie there. But it was a new building, so we picked the final paint color. Everything down from purchasing silverware to the bedspreads and comforters and pillows and just everything. You have this vision and you want to make it comfortable and you want to make it interesting and include plenty of activities. And so you try to think of every little thing. And then once you've got it perfect, it's ready to go on the market. And like he said, we pulled away that afternoon like. This is it.
We spent the last three to four months, because we both work full time. Gatlinburg is almost four hours from where we live. We would leave in the evening, we'd spend the night halfway, we'd go, we'd spend the whole weekend working and just pulling away from that, it was really tough because, even though you're excited, you're also thinking, I'm just letting whoever come to this home and stay after all this time and energy we've put towards it. So. We pulled away, she cried, but I was ready. I was ready to see money flow the other direction. Right. The quicker you can get outta there, the quicker the money can come in. That sounds like Culin.
FInding the Perfect Airbnb Market
Billy, what was the hardest part of your process? I don't know that something that sticks out as, as hard. It was an enjoyable process. Probably the number crunching if I had to pick. We looked in at the Gulf area, but when I told the banker where I wanted to invest, he was like, "if you're going to the Gulf, I'm out. If you're going to Gatlinburg, I'm in."
How long did it end up taking you from finding the property to getting it listed live? We closed in April and went live the third week of June. Wow. That's a, that's a us-style kind of of turnaround. How many bedrooms is that place? It's a big place. Three bedrooms, three full baths, two half baths, sleeps 12 including the pullouts. So that's not a, little one bedroom thousand square foot kind of place that you just turned around. That's amazing.
The one thing that the process a lot easier is I research everything and I happened to run across your book, Host Coach. So I ordered it and I read it all the way through. We actually downloaded the book, and then Tammy listened to it as we were driving back and forth and we were highlighting - we need to remember this, we need to remember that. So yeah, we had the audo book. I was like, oh, stop, pause, pause that. And we'd highlight the book, you know, make a star by important points. So that helped immensely.
Something to do during that windshield time, making me blush. But also the whole reason we wrote it was to help other people figure out the fastest way to find financial freedom.
The Financial Reward of Airbnb Investing
You said you were crunching numbers. Your accountant wanted you to do a short term rental. Would you say that your investment has been a financial success? Absolutely. We're extremely fortunate. We're looking at our calendar, like, when can we go down there to restock and keep a thumb on on everything. I truly feel that by handling the rental ourselves, it lends personable touch to it. So we try to make sure we go down once every six weeks. I think that helps in the Airbnb, especially when you're communicating with your guests.
Oh, I can't agree more. And that's what makes Airbnbs different from a hotel. If you wanted a sterile environment where you, talk to a front desk clerk that doesn't know you or really care that much about the property, unless it's a super nice place. You go to a hotel, if you want real people who've made somewhere beautiful, that can tell you every game in the place and where to go to have fun and to keep your trash in because the bears might be out there. That's why you go to the adventure of an Airbnb. You want something different and interesting and connecting. And to Billy's point, it's about owner's eye, right? We try once a quarter, get down there and get those scuffs off the wall and reorganize the plates and cabinets that your housekeeper's not going to have time to do during a same-day turnover clean for you.
The Best Way To Ensure Airbnb Launch Success
We got to the end of the book, we saw that we could book a free Airbnb coaching call with you all, and I thought nothing venture, nothing gained. And, we talked and then first 90 days y'all helped us get it up on Airbnb and all that stuff. And I told her after the first call, I said, I got my money's worth that call. There we go. We're trying to add value.
Having you as coaches during the processes of the Hospitable and the Pricelabs, that has helped immensely. Not only does it help you maximize your profit, it also helps you minimize the amount of time you have to do the rote over and over again. So then you get to focus on the fun part of talking to guests that are proposing or having an anniversary or, going back in and touching up your decor and adding more snacks and stuff like that. The fun stuff!
What surprised you the most about being an investor and managing the Airbnb? That I enjoy it. You were just the numbers guy, right? It's been a good team experience for the both of us. He takes care of the numbers and kind of coordinating different things. People that request, to stay extra, he looks at those days. And I coordinate all the communication. If we have any questions or we miss something, both of us are watching that. And are you gonna respond? You know, depending on where we're at. And I just think it's works well. We enjoy hosting.
Beginner Airbnb Investing Mistakes
Did you make any mistakes as new investors? Not really - A: because of the homework that we did, B the Host Coach book that we had. I'd sold real estate when I got out of college, so I'm familiar with how all that operates. So we had gone to Gatlinburg three or four weekends driving, looking at different areas, looking at styles of houses. We pretty much had it all laid out. Dos don'ts. What we like, what we don't like before we ever got in a truck with a real estate agent.
We have a superb real estate agent. He took us around and told us the good points and the bad points of each area and he was honest. He's from the area, he's lived there all his life, and so that really helped. We do have some friends that own cabins near where ours is, so we're able to bounce questions off them and what their market looked like around, around the Chay Village area where our cabin is.
What I'm hearing is there's no replacement for getting boots on ground. Get out, even if you're not ready to buy this second. Get out. Get super familiar with the area, and find an agent that's super familiar with the area and understands your goals.
Going back to the boots on the ground, we realized how many of the properties when you get on those mountains, don't have good parking. And that was one of the key things we looked for, when we started searching was so many cabins. You could've gotten two vehicles in there at most. And so that was one of the things that I would take away from getting out there and looking at the properties, before you even aligned with a real estate agent. And that's not necessarily going to show up in a listing, right? You've got to see your surroundings.
Learn From Your Airbnb Competition
Tammy did more of this than I did, but she read other people's reviews about what people liked, and it became apparent in Gatlinburg the topography is challenging. I know the house across the street from us, the kitchen is on the third floor, so you have to carry groceries three flights of stairs. where our sits, you're three steps and you're in the main level of the house, and that's big. Other people's reviews helped us kind of narrow down some, some do's and don'ts. Super smart. We always tell people to do that and I think you might be the first people that actually did. Good job!
Even amenities that they mentioned. I'd think, well that's a good idea. We should think about putting that in ours. We did two coffee bars. One's on the kitchen level and we have another master suite upstairs that we added a, small coffee bar up there as well. And I think they've been a big hit. And that was something I kept seeing over and over in our guest reviews: "Oh, we enjoyed the coffee, we enjoyed this." There's, three levels. There's three decks, but the one upstairs is a private deck to the master. And that's perfect. I mean, if you have 12 people staying and you're the people in the master suite, you're most likely footing the bill or at least the majority of the bill. To be able to not have to see anyone make your coffee and go sit on your deck. That's what vacation is all about. That's a great experience.
Advice for New Airbnb Investors
What advice would you give our listeners who are thinking about getting started?
Go above and beyond on the homework and the groundwork. One thing we have found out through this process, the cleaning team is the key to success. They're your eyes and ears on the ground. And they're tough to find, at least in the Gatlinburg area. When you get them, treat them like gold. We try to do something quarterly. We have a young couple that takes care of our home primarily. And so we send them a little card with thank you's and here's date night money. It's really paid off to treat them well. Because the communication's excellent.
Another thing I would say is don't be an absent owner. Just in our experience, I think our day-to-day involvement with the guest, answering immediately back to whatever the requests are, just even compliments that they give us. I think that has really gone a long way. Absolutely, it's a two-way relationship. It shouldn't just be the management company. Everybody knows when it's a management company. If I see the management company name instead of the host name, I am so much less likely to book because I do want the person who cares about the property, cares about me as the guest and will personally answer my one or two questions about the property. So good for you.
We had a guest that was coming through Nashville for a few days they wanted to go to the Grand Ole Opry, and they were four people, and they were older. Well, my brother-in-law's head of security at the Grand Ole Opry, so I was able to get him really good tickets, some backstage experience and things like that. Just a little added value. And those people, just two weeks ago re-booked with us again. And I bet they told every single person who asked about their trip about it!
One thing I would tell people that might watch this. So far, we've had nothing but five star reviews. But there are the people out there that will test your patience. we'll put it nicely. We've had one or two that I feel like they knew they were looking a refund once they got there. They know what they're doing. it happens and it makes us mad. The good thing is they are few and far between. My father-in-law calls them the percent dissatisfied. And apparently no matter what you do, there's always a percent dissatisfied of the population That even if it was like the most perfect thing in the world, they would find something wrong with it. And just knowing that those people exist, I feel a little bit bad for them. I try not to let them ruffle my feathers too much because 99.9% of our guests are amazing.
Are you inspired by Tammy and Billy and want to invest in an Airbnb that covers its mortgage, creates tax benefits and turns a profit, but still afraid of making mistakes and potentially losing money? If expert guidance to make sure you're making the right decision and fast track the success of your Airbnb investment will give you the confidence to take the leap- that's what we do! Head over to HostCoach.co to book a free 30 minute Airbnb coaching call with us. And remember, our joy is in your success!
