What is the deal with AirBnb rentals and short term rentals?
First off I’d like to thank everyone for leaving their reviews on itunes results in this show being one of the top investment podcasts in all of iTunes. If you have any constructive feedback or questions please send them in and not write them in a less than 5 star review.
We received a less than stellar review about my lack of understanding of RESP. Admittedly, I don’t understand the nuances of RESP’s nor do I care to but don’t listen to me, my investments for my kids education plan returned only a couple hundred thousand in less than five years.
Personally, I’m a problem solver and the problem for a dad with young kids is affording their education is going to be expensive. A Globe and Mail article forecasted my kids’ education costsing $70,000 each for a four year undergraduate degree for tuition alone.
I have two kids so I need to make an extra 70k times two as I have two kids so how do I solve this problem of affording university?
In hindsight, investing in real estate has worked out quite well based on the results of equity gains in the hundreds of thousands while my kids are only five and three years old.
In asking Certified Financial Planner, Masters of Business Administration holder, investor of 10 properties and upcoming guest of this show Kathleen Van Den Berg, she informs me the nuances of RESP’s maximum grants per lifetime are $7,200 each kid. Again I don’t understand the nuances, I have shiny thing syndrome bad enough but my problem is saving $70,000 big, not $7,200 in grants.
I’m not saying don’t invest in RESP’s, I think for some they make a lot of sense but personally for my kids, I need a lot more savings and flexibility as more and more, I see tremendous quality of education for Sales, Marketing and Business to be better outside of traditional brick and mortar universities. Back we can talk about that another time.
While we are talking about my kids’ houses, one of them we have changed strategy from student rental to college kids to a short term rental and what a coincidence I had an in depth learning session, I mean interview of a full time AirBNB operator Bryan Kirow of Northern Host Kirow Management Inc with over 400 overnight stays in his units and counting.
As you can tell from the interview, he’s quite bright, upon graduating university he worked for the Canada Revenue Agency (CRA) for our American friends listening, that’s the equivalent to the IRS in the USA. Bryan worked there till life had him move out of town and he decided to make a full time gig of operating short term rentals remotely as some properties are over 300km’s apart, and he’s acquiring more properties. Currently he owns four properties with seven units but his portfolio is doubling in size in just a few months.
His investments have worked out quite well as he’s often doubling or tripling the rental income of a long-term strategy, and at the same time avoiding many of the tenant issues from long-term tenancy. Bryan even shares the little known renovation to try and double his already tripled annual rents on his property in a vacation town. Doubled his tripled rents. I know that sounds weird but when you listen it will make more sense.
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