Investing in Short Term Rentals with David Pere

February 4, 2022 melissa Real Estate Comments Off on Investing in Short Term Rentals with David Pere

Investing in Short Term Rentals with David Pere

Investing in short-term rentals is an underutilized but excellent income opportunity even for inexperienced real estate investors. However, there are a few things you should be aware of before diving into this niche. The founder of the Military Millionaire Community, David Pere, has firsthand experience with short-term rentals and has some fantastic tips and tricks to share, particularly when it comes to dynamic pricing.

The following points are taken from the 21st episode of the Real Estate JAM, where David Pere narrates his journey to becoming a real estate investor while serving as an active-duty Marine and the challenges and lessons he’s learning along the way. If you want the full experience, tune in to the full episode on YouTube, Spotify, or Apple Podcasts.


 

Short-term Rentals

Short-term rentals have evolved significantly since the introduction of platforms and online marketplaces such as Airbnb, Booking.com, and VRBO. Many people are considering converting their homes into vacation and staycation places as a means to diversify their portfolios and generate cash flow, particularly now that reaching their target customers is easier than ever.

For some, like David Pere, short-term rentals are a great option in areas where long-term rentals can be a pain due to unfavorable tenant laws. It’s also a great way to save money when your assets can pay for your living expenses! Are you convinced now?

But, before you dive into the world of short-term rentals, here are a few pointers to keep in mind:

  1. Assess the area and the market – Due diligence is important when buying any property. For short-term rentals, in particular, take the time to assess if there is a market for short-term rentals in the area. A strong short-term rental market is usually in close proximity to vacation spots, hospitals, schools and universities, and sports and recreational facilities.
  2. Know the local laws and regulations – Local laws have a direct impact on the real estate market. It is critical that you first examine the rules and regulations governing short-term rentals in the area, as these can make or break your business’s success.
  3. Don’t skimp on marketing and advertising – Don’t just rely on your vacation rental’s outstanding location or how nicely you’ve furnished it. You’ll have to hunt for clients more frequently than in long-term rentals, so complacency should not be in your vocabulary. Effective marketing and advertising strategies can help you gain a competitive advantage, especially in a highly competitive market.
  4. Invest in tools and platforms – Without question, technology has improved many areas of our lives. The rise of short-term rentals has benefited greatly from technological advancements, particularly in the online space. So, whether you’re a techie or not, you should learn about and invest in tools and platforms that can help your business thrive.

 

David shared how he was able to earn more money after discovering a platform that allowed him to apply dynamic pricing to his short-term rentals.

“I have seen an immediate 10 to 20% increase in what I get. A prime example of this is I already had Thanksgiving booked at $55 a night for a family of four, and Beyond Pricing was saying that I should have been renting my place for like $120 bucks a night over that weekend. And so I’m looking at it, and I’m like, ‘Huh, I missed out on literally half of what I could have been renting over this week-long period'”. – David Pere

 

Final Thoughts

There are various ways to invest in real estate. Don’t be scared to try different strategies if one doesn’t seem to be working for you right now. When long-term leases were not an option, David was willing to learn about and test short-term rentals. Who knows, your next risk could be your best chance at becoming a millionaire.

 

Want to learn more about David Pere’s tips and tricks? You can listen to the full episode on YouTube, Spotify, or Apple Podcasts.

 

Outline of the Episode:

  • [02:37] How reading the book “Rich Dad, Poor Dad” motivated David to buy his first house.
  • [05:42] Breaking through analysis paralysis to getting things done.
  • [07:43] The start of the “Military to Millionaire” journey and its growing community.
  • [11:46] Talking about the hard spots in real estate investing.
  • [15:06] The challenge in finding good contractors. Are they from another planet?
  • [16:54] Getting your assets to pay for your living expenses through short term rentals.
  • [19:50] Trying to strike a balance between putting on the throttle and pulling back to analyze.
  • [22:31] What is dynamic pricing, and how can it benefit your rental business?
  • [28:25] How to find time for real estate investing when you’re on active duty?
  • [32:08] Time blocking and batching – you should give it a try!

 

Resources Mentioned in the Episode:

 

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