Hey there, awesome friends! Ever wished for the freedom to chase your dreams and live life on your terms? Have you thought about taking the plunge into financial independence through passive income, specifically by venturing into the world of real estate and Airbnb?
Well, my journey has led me to triumph with two prosperous Airbnb properties, and just recently, I snagged my third! A little over two months ago, on February 22nd, I signed the offer letter for this exciting investment. With the experience still fresh in my mind, I’m stoked to launch my podcast and share the ins and outs of achieving passive income with Airbnb.
Join me, Revy Wild, in this dynamic series as I bring you along for the ride, with each episode highlighting a day of significant progress. In today’s kickoff episode, I’ll take you through the thrilling discovery of my third condo and unveil the four key factors I look for when hunting for that perfect investment property.
Let’s embark on this empowering adventure together and unlock the boundless potential that awaits us!
It was a bustling Friday, and work kept piling up, but I couldn’t help but feel excited for the skiing trip planned for the next day. Then, a message from my Hanai mom popped up on my phone. I instinctively knew it would be about a new condo on the market before even reading it. It might seem strange that we don’t communicate much outside of business, but it’s not due to a lack of affection. We trust each other implicitly and understand that our busy lives often take precedence. When we do reunite, we cherish the quality time we spend together. In this season, she knew I was on the hunt for condos in Hawaii, as I was financially ready to invest in another property.
This brings me to the first point I consider in an investment: areas that will appreciate in value or at least maintain it. To minimize risk, I currently invest only in places I’m confident will hold their value, like Hawaii, where building restrictions and limited short-term rental options create a growing demand and diminishing supply, along with the ever increasing tourists.
Two weeks ago, she had called me about another property, but it turned out to be a dud. The complex management revealed structural problems, a sign of poor management that might recur even if fixed. Although slightly disappointed, I wasn’t discouraged. After all, I have already done two, so acquiring my third condo no longer felt daunting.
As expected, her message contained another promising condo. I clicked the Zillow link and saw that it was a studio – perfect for attracting bookings from couples seeking a romantic Hawaiian getaway. I glanced at the price and thought it was a steal. To ensure it was a good investment, I compared the studio’s Airbnb nightly rates in the area, aiming for a return on investment (ROI) of at least 10%. My investments typically yield even more, but finding such opportunities in Japan has been challenging. For those seeking similar investment properties, websites like AirDNA can help calculate your ROI.
Point 3: Assess the renovation costs in terms of time and money. When examining a potential condo, I scrutinize the aspects that might require substantial investment: ceiling, floor, countertops, and cabinets. These aren’t deal breakers, but they’re essential for many people and could affect my budget and timeline. Ideally, I aim to find condos that are undervalued due to outdated decor but have a solid structure, which allows for a quicker and more cost-effective transformation.
I noticed the condo had tile flooring and, thankfully, no popcorn ceiling. Nobody likes popcorn ceilings, period. As for the square tile flooring, while I prefer long tiles or even vinyl for style, it’s much easier to work with than carpet and more durable, resulting in lower maintenance costs. The granite countertops and decent-looking cabinets were a bonus. I’d need a local person to confirm their condition and check for water intrusion, the number one issue to watch for inside a unit. Indicators include discoloration on walls, ceilings, and floors around sinks and baths. It’s crucial to see the property in person to confirm these details because photos can be deceptive.
Point 4: Be swift and make a competitive offer! I asked my Hanai mom to visit the property, but waiting three days seemed too risky. Great deals can disappear in just 24 hours. So, I contacted my realtor in Hawaii at 10:30 pm, feeling slightly guilty but also excited. We discussed our strategy: since I was paying in cash, which is less risky than a mortgage, we didn’t need to offer an extra $10k to entice the seller. Instead, we waived the termite inspection, knowing that vacation rentals are less likely to have termite issues due to guest feedback. My realtor was thrilled with our approach and prepared the offer letter that very night.
Investors who excel in this field recognize a good investment and act quickly. This is why many people miss out on great condos – they either don’t know what makes a good investment or hesitate due to the high stakes, losing valuable opportunities. Some may end up with a less-than-ideal property, lose confidence, and become disillusioned with real estate. But fear not! That’s why you’re here – to learn how to be a savvy investor, not just another sheep in the market. Remember, real estate has rules to protect buyers, especially for home purchases.
It’s exhilarating to make an offer! The first time I did it, I rushed and felt somewhat confused. But now, on my third time and with confidence in this system, I’m filled with excitement. Playing with big toys is thrilling and satisfying! Securing this next condo means mastering my investment strategy even more, giving me greater confidence, the means to support my mom, and the resources to empower those I love. I’m deeply grateful for the gifts God has given me and strive to be a good steward of them by relentlessly pursuing my life’s goals, by embracing the excitement and move forward with determination!
In a mere 10 minutes, everything clicked into place. Energized, I tackled the rest of my day: wrapping up work and guiding friends around the Google Japan office. By 6 pm, I was back home, reviewing and signing the offer letter from my realtor. I caught up with my roommates, discussing our thrilling ski trip planned for tomorrow. Connecting with those around me is vital, as I want them to know that they’re important to me, even when my schedule is packed.
I shared a bit about my condo-buying journey with my roommates. Although they were excited for me, they didn’t fully grasp the situation, so we shifted the conversation back to our ski trip. Amidst the 60% excitement I felt for the trip and the condo, I also felt 30% accomplished and 10% lonely, as there weren’t many people around to share my joy. Yet, I embraced this feeling, recognizing that it’s natural for humans to yearn for something more. In my view, experiencing both joyful and painful emotions is not a negative thing; it’s a part of life that makes it rich and beautifully complex.
Keep in mind the four points: 1) find a valuable area, 2) choose a unit with an ROI over 10%, 3) evaluate time and monetary costs, and 4) act fast. That’s a wrap for today! Now, it’s time to unwind with my housemates, get some rest, and prepare for a day of skiing tomorrow, all while eagerly awaiting the offer letter.
I hope you could feel the excitement I experienced while pursuing my dream condo! How did it resonate with you? Have you considered or purchased property before? What was your experience like? Or have you ever felt lonely, unable to share your enthusiasm for something you’re passionate about? Please share your thoughts in the YouTube comments or leave a review on the podcast! I hope this has been enlightening.
P.S. If you’d like me to elaborate on the loneliness aspect, it’s important to remember that even in our most joyous moments, we can still experience a sense of longing for deeper connections. It’s in these times that we learn to appreciate the beauty of human emotions and realize that sharing our triumphs and challenges with others adds meaning to our lives.
Good night, and thank you for sharing your time and attention with me! I’ll be back soon to connect with you all again. Next time, we’ll dive into the essential details to watch for in your offer letter. Until then, take care and keep striving forward!
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