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
Before and After Bathroom
Before and After Studio
Before and After Living Room
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
Email [email protected]
Resources
Tim’s Before & After Photos
Nav Athwal on Apartment Building Investing
Rich Dad Poor Dad: What the Rich Teach Their Kids About Money—That the Poor and Middle Class Do Not! by Robert T. Kiyosaki
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
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Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
