MB 111: AirBnB for Apartments with Tim Hubbard

Before Tim Hubbard purchased and renovated his small multifamily property in Memphis, Tennessee, the long-term rents ranged from $350/month for the studios to $700/month for the two-bedroom unit. After the renovations, complete with furnishings and Airbnb-ready locks and amenities, Tim began earning revenue of $2,500/month—PER UNIT! How did he do it? What made this particular property perfect for the short-term rental market? Is the Airbnb model right for you? Tim Hubbard began his career in the hospitality industry before making the transition to real estate. He is passionate about travel, and the Airbnb model allows Tim to visit dozens of countries around the world—while providing the opportunity for others to do the same. Tim serves as the Director of Operations for Midtown Stays, a vacation rental company with properties in both Memphis and Sacramento, California. Tim sits down with me to explain how he got involved in the worlds of real estate and Airbnb. He describes his experience purchasing and renovating an 8-unit in Memphis for short-term rental, discussing how much he invested in the property, what it took to make the apartments Airbnb-ready, and how he financed the deal through a local bank. Listen in for Tim’s insight around managing Airbnb properties remotely and learn what factors to consider in choosing vacation rental property! Key Takeaways Tim’s experience with Airbnb User since 2012, began hosting in 2015 Tim’s background in real estate Wanted to pursue travel, started investing in 2010 Tim’s 8-unit property in Memphis Staying in Airbnb on same street Found large colonial in Midtown Vacated entire building to renovate How Tim financed the venture Commercial loan from local bank Tim’s backup plan should new regulations restrict Airbnb Go back to long-term rental The extent of the renovations on Tim’s property Built in 1912, needed top-to-bottom overhaul Updated plumbing/electrical, structural work Seller replaced roof as part of deal How much Tim invested in the property Bought for $270K $200K in renovations, furniture The revenue from rent before and after Long-term rents ranged from $350 to $700/month Airbnb income per unit after was $2,500/month How Tim made the units Airbnb-ready Installed digital locks Provide guest essentials (i.e.: iron, kitchen appliances) How Tim manages the units Software, reservation system in place Housekeeping and maintenance staff Full-time manager local to Memphis How Tim can market the units on multiple sites Use ChannelManager to syndicate Sync calendars to prevent double-bookings What’s next for Tim Explore other markets, purchase more in Memphis Pursue master lease model to scale faster Tim’s insight around considerations for short-term rentals Airbnb guests looking for unique experience Walking distance from local attractions Landlord-friendly, turnkey markets (e.g.: Memphis, Indianapolis) Connect with Tim Midtown Stays Email tim@midtownstays.com Resources Tim’s Before & After Photos Nav Athwal on Apartment Building Investing <a href=...