HOW MUCH MONEY MY TINY HOUSES MAKE and why Airbnb is the best way to make passive income

hey guys welcome back to another episode of rob build i'm your host rob today we're going to be doing a breakdown of how much the casita konejo has made me on airbnb in the last month but before we do it's 105 degrees outside so we're gonna go inside not here but my house new take new take all right let's do this thing i'm ready baby so we're gonna head inside for the breakdown cool all right you know you didn't see him you didn't seem to like that yeah you said break down twice all right am i in focus all right and we're inside my house and it's only been 15 minutes since i recorded that in my leg i gave myself a cramp and it's only been 15 minutes since i recorded that first intro not 15 days uh no yeah it took me a little bit of time to actually get to this video because i was planning it out for a while but i did wear the same shirt for continuity and i did get the first haircut that i've gotten since the beginning of the pandemic i feel like a new man uh no it is looking fresh though today we're gonna be talking about how much money my tiny houses have made me and if they panned out to be good investments spoiler alert they have really quickly i just wanted to say before i get into this uh my intention for making this video is not to brag about how much money that i've made i really feel like i try to be as transparent as possible on my channel about personal finances and side hustles because a i'm a regular person you know i'm like a regular guy and b i want anyone who wants to get into the airbnb game or the tiny house building game to watch my content i want you guys to feel like you can do it too because i really don't think it's that hard it just takes a little bit of effort and hard work and you know hopefully by watching my channel it inspires you to you know do the same for yourself so with that if you're at all interested in becoming an airbnb host i'm going to leave a link in the description down below when you sign up with that link and you host your first day you'll get a 60 bonus from airbnb and i'll get a little kickback too so if you find this content helpful at all and you want to support me sign up with that link and uh it'll be a win-win for you and for me for you and for me help me fund my chipotle burritos i'll also leave links to both of my tiny house airbnb listings down below for you to peruse and you can check my calendar anytime you want and see how booked i am and manually calculate how much money i'm making if you don't believe me in this video i didn't get it so let me quickly break down how much it costs to build each tiny house the one here in la in my backyard is an accessory dwelling unit that one cost me 72 000 to build and that's because i did a lot of the general contracting project management and a lot of the work myself my tiny house in joshua tree california cost about 165 000 to build start to finish which is about twice as much as my la build because i had to hire a general contractor to complete that entire build since i lived here in l.a i had to buy the land i had to put in a septic the carport the balcony the sprinkler system all stuff that i didn't have to do here in la so there's a reason that it's a lot more expensive and i will tell you what sir do not build tiny houses that are expensive and then put them on youtube because you will get a lot of flack for it i've gotten so many negative comments from people that cannot comprehend why tiny houses cost so much to build mostly because a in their minds tiny houses should cost 33 dollars to build and they've probably never swung a hammer in their life and b they probably live in pipa toomba wisconsin where real estate is very very cheap and so they just scoff at the idea of spending so much on a tiny house i'm just going to read you some of my favorites unnecessarily expensive and unnecessarily small and such a wide open space this would make much more sense in a dense city this looks like a glorified dollhouse dang this is very expensive for tiny home you can get a house in georgia for 180 000 and get five bedroom with a big yard 165 thousand dollars for a tiny house is like making vegetarian meatballs that's a good one 165 000 you lying sob a tiny house like that cost twenty thousand dollars max i wish but it's all good most of you all are very supportive i would say ninety percent of comments are very nice and uh you know very uh encouraging and uh you know when i built these things i knew that i was taking a risk but i also knew it was a calculated risk i knew what i was doing kind of okay i've talked enough so let's get into the numbers but before i do since i am revealing some pretty personal information you wouldn't mind doing me a favor and hitting the like button and the subscribe button down below that's gonna help me out with the youtube algorithm also be sure to click that little bell by the subscribe button so you can be notified of any of my uploads so you can be hooked up with more airbnb tiny house and real estate content from me and of course follow me on instagram at raw built for more of my day-to-day you know tiny house shenanigans in this video i'm going to be breaking down the last two months which were july and august which is really at the height of rona and we're going to start with the la tiny house which is right out here you'll see here in my airbnb portal that i basically had a reservation from june 29th through july 31st now since we are talking about july specifically i went ahead and prorated everything but you'll see that this reservation was 244.39 but once it was all prorated for 30 days in july that gross revenue came out to 2 295. and 51 cents that was how much i made total now we're going to get into the expenses since that is something that people ask me quite a bit about so my cleaning fees were 120 this is something that i don't really use in my calculations and some of my other videos and people are always asking me in the comments why don't you include cleaning fees and there's a really specific reason for that i don't pay cleaning fees [Music] the guests pay the cleaning fee so for me it's not really an expense because it's passed over to the guest the guest pays me the cleaning fee and then i pay my maid that cleaning fee but overall that's not really an expense that is factored into any of my bills or costs but i went ahead and included it here just to be thorough so you'll see gross revenue 2 295 cleaning fee 120 and then for my bills my bills for my la tiny house are pretty low you know i have a mortgage not really a mortgage i have a loan note on it which is a very high interest at seven point five four percent amortized over seven years the loan amount originally was forty five thousand dollars i now owe about twenty seven thousand dollars on that note but monthly that is six hundred and ninety one dollars a month and then my uh electricity and water are bundled together that comes every two months but roughly and this is probably estimating a little high i spend about 50 a month on electricity and water for that tiny house it's probably closer to like 25 or 30 but just for the sake of padding it a bit and then my insurance for this house is not lumped in with the insurance on this house i have to pay its own addendum and rider so that's about 50 a month and then supplies which really comes down to toilet paper shampoo paper towels all that kind of stuff that runs about 25 a month i mean i split that with my own house because we buy all that stuff at costco and then we just take that stuff out of our closet and put it out there but roughly speaking about 25 to pad it a bit so if you go down here i've added it up my total bills for my la tiny house is 816 a month roughly and uh my gross revenue is 2 295 again my cleaning fee 120 816 for my bills and that means that my net profit for my la tiny house in the month of july was 1 359 and 51 cents and in august you'll see that again 100 booked for the most part uh someone here snuck in on me so i have two reservations roughly speaking uh for the month of august i had about forty seven hundred dollars of gross revenue in my tiny house here in l.a so i'll go over to my spreadsheet again i've prorated all that i've already calculated what i've made so in august my gross revenue was two thousand five hundred and eighty three dollars and twenty five cents my cleaning fees were two hundred and forty dollars and then again my bills 691 50 50 25 about the same it doesn't really change all that much this one is pretty dialed in so again my gross revenue 2 583 uh my cleaning fee is 240 my bills expenses no all that kind of stuff 816 and then that means that my net profit for the la tiny house was 1527. 527.25 for july and august on this tiny house i made a profit of 2 86.76 now keep in mind for the most part i am hosting travel nurses back here at a very high discount uh you know if i was doing just regular short-term stays this number would be much much higher now i should go without saying that i'm not a graphic designer or an artiste none of this has been photoshopped to pull one over on you these are all numbers straight up from my actual portal to fake this would cost me a lot of time and a lot of money hey bud i need you to photoshop some stuff for me oh my god oh scared me so bad so those are the numbers from my la tiny house but things definitely get a little bit more interesting as we dive into the numbers for casita conejo so hopping into my airbnb portal here you'll see that i was 100 booked in july the only time that i had an opening was on july 27th that's because i stayed there on july 27th for the first time ever since actually owning it so it was actually nice to go and experience it so had i not booked the 27th for myself guarantee that i would have had a 100 occupancy um so it's all good but i had about 17 reservations here i had a really big reservation coming from richard here from the past month so i already prorated all that so let's go ahead and hop into the spreadsheet here we'll go into july this is my conejo monthly accounting spreadsheet this is nothing fancy of course i actually formatted it a little differently for this video just to make it as clear as possible for y'all but you'll see that my gross revenue for conejo in the month of july was five thousand one hundred and seventy four dollars and eighty three cents gross revenue five thousand one hundred and seventy four dollars eighty three cents i had a total of seventeen cleanings for the month at seventy dollars for cleaning that came out to 1 190 and then my bills were 850 for the mortgage tax and insurance this is another question that i get quite a bit on all my comments like how much were taxes how much were insurance and all that kind of stuff the reason i don't include that into a lot of my calculations is because that's already added into my mortgage so when i say that my mortgage is 850 that means that it includes tax title insurance all that jazz so 850 bucks for that my electric bill was 74.82 cents my pest control my peace control control was a hundred dollars my water bill was 39 48 cents trash 38 internet about 60 i think it's a little less than that but 59 something yeah so when you add all that up my monthly expenses are one thousand one hundred and sixty three dollars and fourteen cents so if you subtract my cleaning fees and my bills and expenses from fifty one eighty one that leaves you with a monthly profit of two thousand eight hundred and twenty one dollars and sixty nine cents and that was in july when i was a little bit more timid with my pricing i wasn't really sure how things were going to pan out with the rona so my prices were a little bit lower but once i was 100 booked i realized i didn't have anything to worry about so i actually jack prices up for august and uh we can hop into that now so let's just go into my august portal just to show you exactly basically uh how book that was so in august i was also 100 booked for the most part with the exception of one day i blocked off the 16th for a different shoot which is actually whenever i shot the intro so i blocked that off for my own personal use i ended up leaving a little bit early around 5 p.m and i opened up the calendar but i forgot that i had a minimum stay on it so it was literally impossible for someone to book it last minute i'm pretty sure that if i didn't have this minimum stay on it it probably would have been booked just based on the fact that i was booked in july 100 and in august 100 so for the most part my bookings they were at a higher price they were a little fatty so let's get into how much i actually made for august now in august i made a gross revenue of and one dollars 5 seventy five cents i had a total of fifteen cleanings at seventy dollars which came out to 1050. my bills were pretty similar to july obviously it fluctuates a little bit with things like electricity but for the most part the same those came out to 1248.90 so whenever you subtract my cleaning fees and all of my monthly expenses from five thousand six hundred and one dollars and seventy five cents you'll see that i had a total profit a net profit after everything three thousand three hundred and two dollars and eighty five cents so again i've got my calculator here so let's go ahead and just add up what we've made here over the past two months in the conejo tiny house that's 2821.69 and then in august 3002. and 85 cents so in july and in august in conejo i made a total profit of six thousand one hundred and twenty four dollars and fifty four cents for two months profit my take home after all bills was sixty one hundred dollars pretty good uh very happy about that like i think september's gonna be even better because i've also raised prices yet again because i'm starting to find out that people love my tiny house and so i've got a premium listing i've got good reviews i've got a highly sought out airbnb you should jack the price up just a little pro tip here if you're booked 100 your prices are too low so the idea is to keep jacking up prices until you're not booked 100 so i'm still kind of playing around with that my average nightly rate was anywhere from 159 to 189 but now my nightly rate is 199 and then on weekends it can be up to 249 dollars a night and i think even as far as october i have weeknights at 2 25 and weekends at 2 49. i always price the months that are further away at a much higher rate because planners people who are planning trips and everything they're typically willing to pay a little bit more to get the place that they want far in advance so i raise prices for that reason typically that's a strategy that works for me so now let's go ahead and add up my la tiny house numbers so that you can see a full picture of how much i made in july and august on just two tiny houses we already have 61 24 plus 13 59 plus the month of august uh that comes out to let's see 15 27. so in july and august on both of my tiny houses i made nine thousand and eleven dollars and thirty cents profit again that's my take home all of my bills and all of my expenses are factored into that roughly nine thousand dollars so if we wanna kind of uh use that number to kind of guide how much i'm going to be making the entire year in profit since that's two months and there's 12 months in a year we just multiply this number by six i can expect to make fifty four thousand and sixty seven dollars and eighty cents on both of my tiny houses for the entire year um that's good that's a lot i'm really happy with that i mean like i said i started with not a lot and i've been able to get this snowball rolling and so now i kind of feel like you know on a snowman i feel like i have the base of my snowman with these two airbnbs and then of course like my glam side and everything like that but it really feels nice to know that like two years of my life i've spent every moment that i had devoted to building these houses and for the rest of my life in theory i will make roughly 54 000 a year until the day that these houses are paid off and then of course i'll make way more than that so now the golden question how many chipotle burritos is that well i'll tell you fifty four thousand sixty seven dollars and eighty cents divided by let's say roughly seven dollars and fifty cents for a chipotle burrito comes out to 7209 chipotle burritos that's how many chipotle burritos i can buy in a year with my tiny house income so i guess you could say things are getting pretty serious i thought you were on a diet that's a lot of chipotle burritos i'm really excited to be making that perpetually for hopefully the rest of my life unless i sell the house of course but to every person out there that thought i was an idiot for spending so much money on a tiny house i just have one thing that i want to say [Laughter] just kidding what do you think about my tiny house investments are they worth it is it something that you'd want to do for yourself let me know in the comments down below i'm kind of curious for me i think it's a home run because it's very rare in real estate where you can turn over this kind of profit this kind of roi i mean in a long-term rental situation you have to consider you're making way less many rentals you could make no money could break even if you make a hundred to three hundred dollars a month in cash flow and a long-term rental sometimes that's a good deal for some people but for me i'm closer to thirteen hundred to three thousand dollars of profit so significantly better than a long-term rental i think the power of airbnb is infinite i have never really paid myself uh for any of this i've always reinvested it into all of my rentals and airbnbs and everything like that but the idea is that if i work hard for the next one to three years doing this then you know i can make a lot more money and i can you know quit my job so can my wife and we won't have to worry about money we can youtube full-time we can run tiny houses we can build cool things and uh that's really my dream i'm chasing my dream i'm living my dream and i really couldn't ask for anything more than i'm getting out of life at this exact moment if you want to get into the airbnb or the tiny house game and you don't know where to start i offer consulting services so i'll leave my email right here feel free to reach out with any questions or if you want to set up a session i would be more than happy to help you and again if you found this video helpful and it nudged you in the direction of becoming an airbnb host be sure to sign up with my link down below for a bonus and again i get a kickback so it's a small way to support my channel and fund my future adventures and my future ventures for what i have planned in 2020 for this channel i'm currently in the process of outlining two different courses one is how to start an airbnb from a to z the other one is how to start an off the grid airbnb experience out in the middle of nowhere basically two different courses i think i'm going to do it but let me know in the comments down below if that's something that interests you the more people that are interested in that type of thing the more likely it's going to happen and if a lot of you are interested then the quicker it's going to happen too so let me know in the comment what you would want to see in a course like that but for now i think we're done i think we're good right ellie maya okay cool i'll catch you on the next episode of rob built

Channel: Robuilt

Views: 553,180

Rating: 4.9015942 out of 5

Keywords: joshua tree tiny house, tiny house in joshua tree, joshua tree tiny home, joshua tree airbnb, robuilt, tiny home in joshua tree, tiny homes on airbnb, how much can you make on airbnb, how much money can a tiny home make, tiny home passive income, tiny house passive income, passive income with airbnb, can you make money on airbnb, how much do airbnb hosts make, how much money can you make on airbnb, average airbnb host income, airbnb host salary, airbnb tiny home, airbnb

Id: 2mVI2p_P-B8

Length: 17min 10sec (1030 seconds)

Published: Tue Sep 08 2020