Transcript for:
Analyzing Airbnb Investment Strategies

presentation too so and we're live okay so today we're going to be talking about the fundamentals of analyzing an Airbnb what it takes to get into the Airbnb game costs expenses the different analytics platforms out there and um how to use them how to use them to your advantage this could obviously take many many hours to do this uh we're going to do it in one that's how much time I've got you for right John yep that's it that want D Duty and then you're out of here you're like I'm done you're not paying me enough for this I gotta gotta go take care of my daughter so got you get one hour rock and roll I love it okay cool well thanks for everybody who's joining us um today I really wanted just to kind of teach the first aspect of getting into your first Airbnb I personally think this is the most difficult part to get in Airbnb is finding a pencil that works understanding how to even analyze a deal and what numbers to consider What expenses oper ational expenses variable expenses fixed expenses all that good stuff so today we're going to try to boil this down as simply as possible before we hop into kind of my process um I did want to just give like a quick plug for anyone that's interested in in kind of getting into their first Airbnb and actually learning how to comp and how to analyze deals with exact Precision I would very much encourage you to consider joining comping Camp which is my camp that it's a four-week boot camp that will teach you all of the fundamentals that you need need to know to land your first property in 2025 it's a four-week boot camp happening in December if you want to learn more about that you can click the link in the description down below I'm pretty sure we have one of those on live and I'm sure I will plug that a few times uh during today's call but before we hop into it uh John can you introduce yourself who are you what do you do what are you good at what's your superpower and then we'll get into rocking some uh some knowledge bombs here sounds good uh I am John bian I go by the Airbnb data online self-proclaimed um I absolutely love airb data I am obsessed with it I have been for quite a while now um I'm self-taught I I taught myself how to analyze Airbnb data I figured out a process that I thought worked really well and um then I just had to put it to the test and actually prove it and so over the last three years I've helped identify I think we're at like5 properties right now uh every single last property that we have identified that is up live in running is cash flow positive so we have a 100% success rate with the process that I developed to analyze Airbnb data to make sure that we're only buying the best possible properties out there and setting them up in the best possible way to drive the most amount of Revenue out of them um I'm the founder of Str search which is a Airbnb data consulting firm I've given out six free Airbnb data courses so everything I'll talk about right now I've broken down in a step-by-step guide that is 100% free um and I help guide people into good properties so so this is what I do for a living yeah cool well I'm a big fan of John I'm a big fan of you mostly because uh you are like me in that you are a big Giver of free information and I think that's your your proposition is lead with value it's mine too and if people ever want to kind of move up uh join the community do anything like that you're always welcome to but I think our best education will always be free starting with today's education so let's hop into kind of my um what I consider sort of my I'm not even gonna say proprietary because it's nothing groundbreaking here but what I call the three C's um what I like about the three C's and I'm pretty sure everyone should be able to see this is it's just a really nice uh way to kind of remember the steps so I think of of sort of analyzing airbnbs as like first step is comping comping is going and analyzing how much an Airbnb is going to make relative to the other listings in the area how would you describe comping and sort of like your process for the way you do things there are other homes airbnbs that are out there that are similar to the property that you're considering to purchase and you want to understand those properties better than anything else because that's your competition and you're in business and when you're in business you understand your competition like the back of your hand so you analyze all those properties and you compare them that's what comping is comparing so that's my quick little breakdown love it cool so so that's kind of like first step is you want to go and figure out how much an Airbnb is going to make and that's the first C in my equation here the second C is calculate and this is where you actually go in and start calculating based on your comps how much money you're going to make or lose so this is where we start kind of factoring in all of the different costs and variables that will make your Airbnb profitable or not profitable um and I kind of have like a a few things that we can kind of walk through here because there's really two sets of costs when it comes to running an Airbnb the first set is fixed costs okay your fixed costs are the costs that aren't going to change at all right so you have your principal interest uh taxes and insurance you have your homeowners association maybe you have a solar loan um and for the most part that's not really going to change you do have insurance that might change year-over-year but every month you can kind of in this particular scenario you can count on your fixed cost being about 2400 bucks um give or take and then we jump into operational costs and these are all of the different uh costs oh getting a phone call sorry about that unprofessional uh these are all the different costs that are going to fluctuate based on Airbnb usage so you're going to be paying all of your cleaning fees all of your utilities you might have miscellaneous maintenance fees um and those are all the costs that are going to fluctuate depending on how many people are in and out of your Airbnb uh am I missing any kind of like obvious operational costs on this John um not that I know of but I don't believe your screen is showing so I have you pulled up on YouTube right now um and it's just you and I boom you're right oh my gosh so dumb okay cool you're good so I'll go back here so fixed cost principal interest uh taxes Insurance HOA solar these are costs that are going to stay the same operational costs cleaning utilities miscellaneous I know John you're really good at finding properties that have insane backyards and all these amenities I'd imagine there are sometimes going to be operational costs with kind of some of the types of properties you've put together right yeah there I mean you you're just going to put a larger um Reserve in there for things breaking or having to repair things just because you have more things right if you only had a living room bedroom kitchen bathroom um then there's less things to break in comparison to you have a backyard filled with amenities so you just need to have more reserves off to the side yeah and I like to kind of talk about operational cost because operational costs fluctuate quite a bit with a short-term rental after a year you can kind of average it out but um when it comes to like running a long-term rental you're not going to have that much fluctuation you're going to have your mortgage and kind of the maintenance that you budget for and so just to keep your lights on on a long-term rental it might cost you I think in this example $2,000 a month is the rent that you're going to get you know uh as a long-term rental the amount of money that you're going to spend maintaining it and keeping it operational could be 10,000 could be $20,000 more and so it's important to kind of understand operational costs because I often see people that will analyze an Airbnb and say oh well as a long-term rental John it's going to make $224,000 a year but as a short-term rental according to airdna it's going to make $48,000 a year that's twice as much money I'm going to make so much more money but when you start factoring in things like $1,000 a month in cleaning fees in your utilities that you're paying for and some of kind of the heavier wear and tear that comes with an Airbnb it might actually work out to where you make the same amount of money as a long-term rental and so operational costs are kind of something you want to dial in very early on otherwise you might find yourself managing an Airbnb for like 500 bucks a month which I've been in that situation several times in my career and it's not nothing but I would rather like have a long-term rental that makes 200 bucks than manage an Airbnb uh fulltime that makes like 500 bucks a month you know so it's it's I mean running an Airbnb fulltime is not an easy thing to do and so you want to make sure that you're being compensated for it right and if it makes if you're making very minimal money it makes more sense to make it a long-term rental because it's a lot easier to manage and run for sure so that's kind of like operational cost in a nutshell then we're going to get into some good stuff here I actually just listed a lot lot of the operational costs that I see in my business so maintenance capex that's always going to pretty much be the same whether it's um a long-term rental or short-term rental although you might argue that maintenance might be a little higher for an Airbnb because you're going to be replacing Furniture more often and stuff um supplies refunds and guest gifts if you want to do like a gift basket you know that might cost you 20 bucks ahead or a stay if you have a refund if you're a hot tub breaks and you have to refund someone like I did last week 100 bucks that's a cost right um utilities Landscaping snow internet hot tub pool maintenance all of that stuff adds up and I I wasn't as um conservative back in the day when I got into this and certainly not when I started youtubing about it I was just looking at like literally how much profit I made every single month and I was like I'm good to go and then like years later when my AC broke I was like oh my God this is like s Grand I wish I had it so now my stance is I I don't really spend too much of my money um and then the last one I'm just going to say really fast and then we'll jump into kind of your expertise here John is corroborate um this is really hard to do if you're not really connected in the hosting Community um the host Camp Community you can always go there host camp.com it is free there's a forum on there you can ask questions but collaborating simply means can you talk to someone that's in that market that has anecdotal experience that can kind of give you some of those nuances with that area and can check your comps right um John you're really good at dialing this in without having to corroborate but you are an advanced guy um it is nice whenever if you're looking at the Smokey Mountains for example it would be nice to talk to someone in the Smoky Mountains to say hey is there anything that I'm not looking out for because I don't know this market and uh selfishly the host Camp Community is you know 3,000 people so I'm able to ask pretty much about any Market but it is nice uh and I am curious do you ever lean on corroboration on your end whenever you're analyzing or are you like straight in the data no uh so what I I call this talking to a local right um find somebody who lives there who operates there who understands this and just try to understand the things that they know almost every single time that I study a market I will first look at the data and learn everything that I possibly can about it and then I'll call somebody up and and uh sort of triple check it or ask for their insights um one of my favorite examples of this was in Branson Missouri the person that we spoke with paid her like I don't know 100 bucks 200 bucks for the hour and she gave this Insight where she's like if you're going to get a really big home you want to make sure you have a wheelchair ramp because three to four generations of families always get together in this area and uh the elderly are in the wheelchair very often so if you can get a wheelchair ramp you're actually going to have a huge Edge over everybody else and she had been operating there for like 5 to 10 years she owned a property management company and she was willing to give away all the secrets if we paid her um a couple hundred bucks for the hour which I was very open to doing right and you're never gonna see that in the data so I always recommend it's it's on my checklist go through the data make sure to talk to a local um if you're going to talk to a realtor make sure there are shortterm rental realtor make sure you can trust them I prefer to talk to a property manager who does short-term rentals the area uh I find that you get better information and they're the ones who are actually dealing with the hosting inside uh day in and day out I love it so talk to a local we call it we call that TT um just kidding uh but it's a great acronym though uh it's not as catchy as the 3c's okay layoff um I like it though corroborate and truly this is for me the benefit um of host Camp is getting that Insight right you know you if you can tap into a local community if you can go to like Facebook groups is a really great way to do this go look at like Smokey Mountain Airbnb hosts there are tons of uh local groups out there that have you know thousands of people in there that you can join and ask questions Facebook groups is a really really great way to do this um how do you find a local do you have any tips for that no Facebook groups is is pretty well exactly what you want to do there's almost always going to be a Facebook group for every single little area and people trying to help each other and I would just say go straight to the Facebook group don't over complicate it rock and roll Okay cool so let's jump into it um let's talk about how you actually analyze a deal um I can tell you how not to analyze a deal I know you're in agreement here um using the rentalizer uh which I actually don't even know if the rentalizer uh even it's not called that anymore right now it's just called else uh I don't even know what it's called I think it's just kind of like a hidden feature in air DNA now I think now it's just like search for address and it'll kind of spit out a projection um but let's take a step back how do you analyze a deal because obviously I've seen some I've seen some YouTube literature out there I I know you've seen it too of of people that use Airbnb calendars to analyze properties I don't really know how that's done I'm more of a data platform guy um I'm a big fan of air DNA what do you use how do you use it how does it come into play with sort of like how you run this process so just a state right off the bat very loaded question there's a lot of steps to it love it we'll we'll get into it as we go right um but let's start off with where we get the data from and the data I get it directly from Air DNA now I know a lot of people are skeptical of air DNA data and for the right reasons you should be skeptical of air DNA data you should not trust it wholly uh but I'm living proof that aird DNA data works right so anyone who tells you that you should not be using air DNA data or that air DNA data is wrong or that the whole site is crap they just don't truly know how to harness the data that's in there they don't know what to look for and more importantly what to avoid okay so airdna data is good um you just have to know what to look for and I just going to State one more time that I've helped identify 195 is properties at this point every single last one of them is cash flow positive and my accuracy of predicting how well those properties are going to do Falls within a 25% to about 40% conservativeness so in other words if I thought the property was going to make $100,000 it actually end up making 125 to 140,000 that's a huge range but I'm a very conservative guy so I'd rather be on the very conservative end and then hope to be able to do better than that so I'll say let's like worst case scenario will end up here and then we always try to do better anyways I'm living proof that air DNA does in fact work and we'll get into the details of it but that's how much did they pay you to say that zero I've been an affiliate with them for so long I don't think I've had a single person use my link um yeah but uh no I've tried the other ones I've tried them I've tried every single last one I've even you know thought about how to build one of my own and uh getting the data and sourcing it properly is extraordinarily difficult um and there's a lot of errors that happen but if you know what the they're doing right and what they're doing wrong you can figure it out and I'm going to teach you guys all that today nice I love it well yeah let's talk about a couple of the platforms so there's airdna um by the way if you use promo code raw built I'll show you how to get your affiliate link out there John uh if you use ra you'll get some percentage of I think you get 10 or 15 perc and if you're a host camper you get 25% if you are a host camper reach out I'll get you that promo code but um use raw built but there's air DNA there's price Labs there's Mash visor there's all the rooms there's data rabu and I think those are kind of like the bigger ones um I would say the two that I hear the most at the top Air DNA and price Labs those kind of seem to be the main two um we'll be covering both of those in comping Camp if you're new to this if you're just joining you can sign up for comping Camp down below enrollment ends today uh but you haven't really used price Labs or you don't really like it that much huh uh price Labs is the only other one that I would use if I uh if I had to so um price so the the the problem here is that I don't know price Labs well enough to know what to avoid and what to look for you know what I mean so that's the only other one that I trust they don't use the cleaning fees so they don't record the cleaning fees which I think makes it kind of confusing whereas airdna does record the cleaning Fe in their revenue so there's two different maths that you have to do when you're doing got it yeah I see so yeah that does kind of change thing but I think it's a truer number because for a long time it was a little confusing on if air DNA included the cleaning fees or not now I think we have the definitive answer yeah for sure but I think four years ago everyone was like asking the question and was like yes no um but yeah okay so you're comfortable with air DNA that's the devil you know yep let's put that way it's a good way to put it yep yeah and that is s kind of what I what I find with air DNA is that a lot of people complain about it mostly because it's the biggest one right um yeah yeah but I think it's usually user error or not understanding kind of the the premise of how it works and how it puts together the data correct yeah but there is a way it's it's a little confusing but there is a way so I've got a little cheat sheet here that you you taught me um this is kind of a lot of your formula I'm sure I'm missing a couple things here but maybe kind of talk a little bit about how the data well what the data is like where do you know where they get it and then good data bad data all that stuff yeah so the very first thing that you need to do when you're going into airdna is understand that not all of the data that you're looking at is going to be 100% accurate and the objective here is is to remove as much of the data that is not real okay now the question that came to my mind always was how does how is some data real and how is some data not real and to understand that you need to understand the what's happening behind the scenes now this might be Overkill but I I learn this way so I always like to share and teach people this way the way that air DNA works behind the scenes is that they have an algorithm that is going into the calendar of every single Airbnb every single day and they are recording that airbnb's calendar okay and so let's hypothetically say we have a calendar that's 100% available today and every single day is $100 it's going to record that then the next day the algorithm is going to come back and it's going to take a look at that calendar and it's going to see that one of those days is blocked off and it's going to assume that that was a booking and it's going to assume that it was a booking for $100 and it's going to record that that Airbnb just made $100 and then it's going to repeat that process every single day for as long as that listing exists right that's what's happening behind the scenes now now that you understand that you have to understand that what we are looking for in the data are fulltime hosts okay you need somebody who is treating their Airbnb like a full-time business and not just a I'm renting this out when I'm gone on vacation type scenario and so the reason we need that is because that's when the data is the most accurate if the person is a part-time host the air DNA algorithm has a really tough time of telling that they're a part-time host and so the host will go in there and actually block off the calendar themselves because they're living in the home and the airdna algorithm thinks that that's a booking and it records it as revenue and all of a sudden this property is showing that it made you know $200,000 throughout the year when in reality it didn't right it it made a fraction of that and so what we are trying to do here is we're trying to find the people who are full-time hosts and so one of the best ways to do that is to is to look at what is called the days available Rob if you could share that screen I know it's a small image there but there's something that they call days available and days available is how long air DNA has been tracking that Airbnb so sometimes they'll say 365 and what that means is that airdna has been tracking that listing for an entire year and the revenue year number you're seeing there is how much that property would have made over the entire year now some listings have only been tracked for 30 days let's say okay and so it's only been tracked for 30 days well that's not useful for us because we need to know how much made over a full year because we have annual expenses and there's also a lot of different seasonalities within the Airbnb business and so you need to know how much you would make over the high season low season the mid-season right and so the first thing that you have there is 250 plus days available or days tracked um on airdna it's referred to as days available I've been talking with Jamie to try and get that changed but uh 250 plus is really what you want to look for because one a when a property has been tracked for over 250 days there's only about three months that are missing there and the annual revenue number that they are showing is the most accurate anything less than that I have a really tough time of actually believing it okay as to be real data so that's the first thing can I can I jump in there I want to kind of clarify a few things and really what we're talking about when we're saying like the algorithm here is extrapolation which is basically taking a smaller set of data and using that ratio to kind of reach like a a larger data point I'll contextualize this right now so like looking at the days available it this has been available for 365 days so that means that this property right here has grossed 60 $7,000 in the last 365 days um I'll show you a different example uh this is 318 days and in the last 318 days the revenue has been $59,400 now what we're saying here is that if we were to extrapolate this 318 days available to 365 days so another 40 40 days or so somewhere in there then the total revenue for this property would be 65,00 bucks which is the revenue potential and so ultimately what John is kind of getting at here is that if you take a property that has uh 50 days um of data available and you try to extrapolate that to 365 days all you're really doing is extra extrapolating like one particular season of that property's year and that's kind of where the data just starts to get super super finicky um does that all make sense it does um if Jamie Lane never watched this he would be a little upset with me if I didn't say some stuff so clarify yeah yeah I love it yeah so there's uh there's a little bit more to it where you know let's say the property was tracked for 50 days right and the revenue potential number that you're seeing there is air DNA's guess at what the property will make over the full year and they're doing their best to estimate what it will do throughout the full year including seasonality right so they're trying to do that now I personally have just always felt like it wasn't accurate and I would feel better if I didn't use th those numbers that was my personal preference on that and I I still feel that way and I feel that it's it's safer to not use those pieces of data now another thing which is going to be I'm gonna conf I'm gonna make this a little confusing but I just want to put it out there because it is it is something that people are going to see um there are some properties that are when they're in their first year the revenue potential number which is supposed to be the full year is not actually extrapolated to the full year it is only extrapolated to the number of days that it's actually been available for so far so as an example see the one that says the third card there that says 212 days yeah if that was its first year the bottom left says 48,000 um the revenue potential would also save 48,000 and they would be the exact same meaning that they in a property's first year they sto extrapolating it over the full year I'm making this too confusing no I like it I think uh all right all we need to know here okay to bring this back if the property has says days available over 250 it's a good indicator that the revenue potential number is most likely accurate and therefore only use that data okay yeah Yeah Yeah so basically cuz I'm saying there if it was 50 days available they would extrapolate that to 365 which gets wonky the air DNA or the like what Jamie Lane would say is hey we actually already take that into account um but I think what you're saying is when it's over 250 days of track data that data point just gets more solid and solid which is why I like you know like this this one right here that's um 365 days we uh we can't see your mouse so you have to let us know oh oh got it okay thank you where it says Chic Villa yeah yeah yeah so you see how it's been tracked for 365 days does this make this a more bulletproof data point than if it was tracked for 250 days yes and no um there's there's a part of me that wants to say yes because they have traed for the full year but once you get to 250 they're only missing about three months and they're taking into account the seasonality and so it is most likely accurate um in every single piece of data if it's tracked for 365 you still have to triple check it oh yeah yeah that's the other the other bullet points here I'm saying if the sniff test on these bullet points here are good I mean are you are you giving the same weight to 250 day track property than a 365 day I am I actually do so 250 days of tra or 365 days of tra I'm I'm giving it the same weight almost oh wow okay interesting okay very rarely will I not very cool okay well that that changes things a lot because I when I see something that has 365 days I'm like and it has like 111 reviews and it's like you know boom boom boom I'm like it's just becomes a much more beautiful comp to me because I know that that day that that is available but why don't you run us through kind of the other sniff tests for determining if yeah a comp is actually a real good comp yeah so um this next one here here is the 20 reviews the we what we're doing here is we're trying to find full-time hosts once again right and if you're a full-time host you're renting it out every single month and so then therefore you should get a review every single month it's very straightforward information here and so the first thing is that I won't look at a property that has less than 20 reviews and the reason being is because you almost always get 20 reviews over a full year it's just almost always happens if you're a full-time host so therefore anyone less 20 reviews I just don't really care about the data now with that being said just because that you know the top left piece of data there has uh uh 111 reviews does not mean that it is 100% true what you still need to do is open up that Airbnb listing go to the reviews and check to see a review every single month for the past 12 months ideally one to three every single month for the past 12 months if it's if there's you know say there's slow season is January and there's no review in January that's fine it's slow season right maybe they just didn't get anybody in or they only had one person and didn't give a review that's fine um but what you don't want to see is August being the peak season and there being no reviews in August that scares me right but essentially if you just keep it to the sense that you want one to three reviews every single month for the past three months or sorry 12 months then you know that you were looking at a full-time host and that's exactly what you want to see yeah a couple caveats there every single listing tells a different story to me and so I agree with everything you just said I feel like the more nuanced you get into this the more kind of things you can pick up because some of the things that you'll notice sometimes is what I like to see is like do the reviews match the seasonality and so I guess what I mean by this is like if I know that I'm analyzing a Beach town I know for a fact that a Beach property in June is going to have lots of guests right like they're usually fully packed and so I like to see that you know let's say a beach toown specifically June July August has multiple reviews whereas if let's say October doesn't have a review in the review population I also understand that you know they're probably not getting booked in the slow season um and so I think that there's kind of some Nuance there on top of the fact that you can also recognize where sometimes you might find three to four reviews per month for a whole year but maybe one month out of that year there's one review or maybe no reviews and occasionally you might have to consider the fact that there's like a midterm rental that happened over the course of that month and so you just want to make sure that by and large what you're saying is one to four reviews a month that that's pretty consistent and if you ever see one month where maybe there is no review it could be something like a midterm rental maybe they shut it down for a renovation and it's just there's no way to really know that so I am curious if you ever factor in kind of some of those nuances with the review population on a comp for sure slow season less reviews that's okay you just don't want less reviews during peak season that's my opinion on that you also don't want like three months of no reviews even if it is slow season that's scary as well um with that being said could I actually share my screen because there is can there's a new way that I've recently learned to be able to vet through this um I'm not gonna have a good example but I'm going to just pull up whatever I can find um let me see here so this idea that we're going through is what if there are no reviews for like a two or three month period I know we're getting into the nuances of this but I think it's very helpful because I used to ignore data that didn't have three months of reviews okay uh like but what I realized was that you can actually look at how much revenue was made month by month now on airdna and if let's say there's three months where there's no Revenue if there's no if or sorry three months where there's no reviews if there's next to no Revenue during that time period that's actually a really good thing because now it's erdna is telling you they made no money during this time period right and you go well that makes sense they got no reviews during this time period and then all of a sudden you can start to trust the data a little bit more hm okay so this is a new feature or this is just a new way that you're kind of interpreting the data um I don't know when they did this but I learned it recently from Jamie oh actually hold on you're not uh let me add your thing now okay cool okay okay yeah now we're on okay cool um let me grab the beach front let's go here so as an example this is a market where there's a lot of seasonality Panama City Beach and so a lot of these listings will actually shut off during the peak season um what I'm doing right now is I'm just going to get rid of the bad data so I'm only looking at 275 days or more and I'm going to get rid of the reviews so 20 reviews or more um and I'm going to grab a random listing me try and find one here and anyways does it really actually doesn't matter which one I grab all that matters is what we want what you want to do here is let's say that you were open up this Airbnb link and you would see that there's reviews missing during the winter okay let's say that were to happen you could then go over to here once you've clicked into it and go to where it says revenue and you can see here there's a lot less money made during the slow season whereas there's a lot more money made during the peak season that is exactly what you want to see when you're looking into a property because this right here seeing this along with a revieww every single month for the past 12 months is going to give me far more confidence in this number right here in comparison to not seeing that nice does that make sense it does yeah do you know oh we're in the Inception uh what is the oh no Interstellar that's what it is the interstellar yeah y uh most of what I think one of the things I want to clarify most of the analytics in kind of the comping we do within air DNA by the way this is not an airdna sponsorship uh but you can use Rob if you want to uh but you do this all with Pro right the pro level membership so I do have the most advanced one just because I use it every single day same right yeah and the problem is I don't know what's on there and what's not on there I don't know which features are involved and which ones are not what I tell people though is I have bought a subscription of the cheapest one the most affordable air DNA version you can get 90% of the stuff done with the their most affordable option you don't need the pro version to do this kind of stuff maybe there's going to be some features that are not going to be available to you but I'm telling you like with that cheapest version you can get almost all of it done yeah I think it doesn't have certain things like amenity filters and and and stuff like that but the to do the sniff test that we're talking about with like track data how many reviews they have uh is it an up-to-date review population one thing that I don't think you covered maybe you did just want to make sure um did you talk about it being hosted on Airbnb versus verbo so um I used to I know why you have that on there because I used to say to not use VRBO only data um so at one point do you have an example here no we don't but in those eight eight uh properties that are that are there in the top left corner of each card is the site that it's listed on so in the very first card you can see the Airbnb logo and the vbo logo means it's on both of those sites whereas the top right card um only is only on Airbnb it only has the Airbnb logo now there was a time frame where I would not use vbo data when it was just on vbo and it was because um the data was split so the the I'm trying to make this not complicated but the top left card sometime like that one has the Airbnb link and the vbo link there together correct there was a point in time and thistime still happens within airdna where it doesn't realize that it's the same listing between Airbnb and vbo and so you get two cards of the same property but uh one is listed on Airbnb and one is listed only on vbo right and there was a there was a time where the vbo link always showed a significantly higher Revenue number in comparison to the airb and B1 and it was it was so consistent it was always up and so I was like I'm not going to use that data and so I always told people only use it if it's on Airbnb however uh that has actually changed so now if you actually see them split they're almost always the exact same so I think there was something going on with the VRBO tracking but it's now been improved and so now I will use it as long as it still passes the very last test which we haven't got to yet but yeah cool you got tell me things yeah sorry when you have a groundbreaking moment you have to tell me so I can let the world know yeah well I had a twoh hour long conversation with Jamie Lane it's on my YouTube channel you can just watch it one day Lee marum already gez Jamie Lane now build this we gotta you know we gotta give him Credit Credit yeah Jame is great um him uh and then by the way we need we'll have a a proper you know podcast for the raw built Channel I'm just kind of trying this live thing because uh yeah I want to do more live content and I kind of feel like people seem to gravitate towards analysis and and obviously I'm launching comping Camp so this is all uh relatively uh relatively relevant so if you're interested in joining comping Camp that's my four- week boot camp in December and enrollment Ends Tonight Cyber Monday at midnight Pacific Standard time we're going to teach you pretty much the ins and outs of how to analyze a property how to underwrite it how to look at comps how to determine if a property is going to be profitable because I personally think that's the thing that holds most people back from ever getting into the game is like oh what if I buy a wrong property so I kind of created comping Camp to kind of just take that fear head on and help someone just kind of understand the the basics John you'll be uh part of comping Camp I'm excited to have you in there um if you want to sign up for that click the link down below and with that let's let's get into sort of your final rule here so the last rule that I have and and I know you won't have an example of this but that's totally fine is uh once you've weeded out all of this data that we would consider to be bad or useless right and and now you're only looking at the properties that you'd believe to be real data with a a review every single month and you know over 250 days available um the last thing that I have noticed here is that it has to make logical sense why one property is making more than the other and so what I want you to do is go from each property one by one as you're going through okay and if one of them doesn't add up then it's likely not real data so what I mean by that is let's say you have one property that's makeing 100,000 and it's a beautiful property really well photographed uh it's got a pool in the backyard a pickleball CT in the backyard it's a beautiful property it's making 100,000 then you get to the next property and that property has bad photos no pool no pickall Court no design but it says it's making 100,000 and it's passed all of the other tests right it has a ROV every single month that piece of data is most likely inaccurate all right because the next piece of data you'll get to will probably be a good listing and so you have a good listing a bad listing and then a good listing in this bad one there's something wrong I still haven't figured out exactly what's going on but every once in a while the story doesn't make sense because if a listing makes more money it's almost it's always a better listing there's something about it that makes it better that's why it makes more money right people are paying more for it and so there's always a logical reason behind it and so that is the last sniff test which you just have to trust your gut on that and be like I don't want to trust this data doesn't the story doesn't add up and you got to remove that piece of data because that's a piece of data that's probably going to get you in the most trouble so you're saying basically like this this right here makes 113k and if let's say I'm trying to find like a like this house right here maybe was right here and it was making 111k yeah uh clearly a crappier listing we should probably say hold on that doesn't make sense it shouldn't be making close to the same because the photos are bad it doesn't have a pool it doesn't have a pickle ball court something feels weird about this correct 100% that is the issue okay because the the problem here is that people will attach themselves to that listing and say oh we could beat this one and ignore the other two on either end that they clearly can't beat got it I see yeah okay so you're saying there's a four let's say there's four data points four houses three of them two of them are amazing making 100K two of them are terrible making 100K or one of them is terrible making 100K someone might think oh I can Crush that guy and I'll be as good as the other ones but maybe just that alone that mentality might get you into some hot water if you're kind of like looking at bad data basically exactly you're trying to make the data work for you rather than that letting the data just be the data man and that's what we do man when you're when you're new at this like all you want is for that data point to really be true because if it is then that means that your property is also going to crush it I mean I'm actually looking at two of my properties are on here I typed in the zip code so that one is my property that one is my property as well there Arbitrage units that are 3,300 bucks a month I don't think we're going to do 105k if we were I'm pretty sure but here's the interesting thing in kind of my knowledge about this so I'm kind of curious how how this plays into some of your philosophy or theories but like we have four listings we have two Arbitrage units and we have four listings for them total and so this is two of the listings but then the other two are duplicates for long-term stays specifically and so sometimes the long-term stay one is booked and then we block off this one over here the the duplicate and then sometimes the short-term rental one is booked so we block off the long-term rental stay so I'm just curious if like that's four listings for two properties so just that whole flip-flop effect has to affect the comps in some capacity right so let's go back to the algorithm right because this is the easiest way to understand it the algorithm is going in there and trying to see if you're getting it booked or not right if you have it set up for a long-term rental and it gets booked for the entire month that's always going to be lower than what you probably could have get what you probably could have made on a nightly basis by renting it out you know for two days at a time but what just happened was you just blocked off your entire calendar that was for for um renting it out on a nightly basis instead of a monthly basis and now the algorithm thinks that you just made a really big booking for that month and Records it as Revenue even though it's a lower number because he rented it out for the month that's why your number showing 105 and you're saying we're probably not going to make that amount it's because the algorithm can't tell that you got it booked out on your other listing and it thinks that it's a booking right so that's kind of the that's kind of my unofficial rule that I haven't I haven't gotten approved from you so I don't talk about it that much publicly but I feel like I do see sort of these like combo listings sometimes on air DNA and I just kind of like I kind of take those out for this exact reason I in I uh I made a video about good versus bad data like two years ago and that is uh one of the core pieces of it that's one of the like nuanced pieces actually not the core pieces it's one of the nuanced scenarios that people need to look out for yeah because if someone's uh coping out my Arbitrage units based on these numbers they're they're gonna have a they're gonna have a tough tough reality check although with that said we're not I don't think we're that close I I think this one probably does like 60 or 70k uh I mean maybe it does 84 honestly I should check I should know my business more Jonathan you got a lot of properties uh yeah yeah well this is a this is a it's a little different one yeah it's a different there's a reason I don't know the numbers but it's fine got okay keep going just a little bit to where you found that other bad comp like the bad property sorry yeah um okay right there so see the one on the left and the one on the right those are identical homes and one's only on Airbnb and one's on vbo so that's a that's what I was talking about earlier where it gets split sometimes and uh usually or back in the day the vbo used to be like way higher than the Airbnb number but as you can see there there's still actually a big gap there um so I probably would ignore that data altogether but um that's what I was referring to earlier yeah I see that yeah that's interesting I I think that's a big enough Gap to but the interesting thing is that the revenue is the same yeah it's over a different amount of times though 325 and 258 so let me ask you this you may know the answer to this you may not but sometimes it says that it's the days available is 366 days it's just a glitch I think and I've never asked about that one I think it's just a glitch okay I actually got some response about that from someone that knows air DNA pretty well and they said if you filter It Out by 365 days on the performance I think it takes away all of the 366 oh yeah you mentioned that data points yeah um something something to be aware of probably two two Nuance for today's conversation but we're getting pretty nuanced one quickly turned into how to use airdna yeah but I mean that's that's the whole thing if you know how to use airdna then we we can get there I I uh I can go longer than an hour by the way we can we can push a little longer okay I got the approval um well um perfect okay so why don't we kind of jump into we've talked about sort of the mechanics and and weeding out good bad D bad data for anyone that's kind of joining right now I see the number fluctuate quite a bit basically we are looking at the top performing properties right now in in Houston and in a particular zip code you're going to see all these comps here and the whole process that we're uh trying to kind of teach you right now is how to understand which one of these kind of properties which one of these comps as you will uh or if you will are actual comps that you can use to analyze a property meaning if you want to buy a property in 77008 which is where this is all located you want to understand how how much is a four-bedroom property in 77008 going to make and so you have to understand which of these properties in this entire lineup are actual good pieces of data that you can use to make informed decisions um and so we've just gone through the whole process of like how you can kind of pick through this and say good data bad data good data bad data and kind of get to your your comp set which is basically you know your top set of comps that will that you can kind of go Toe to Toe with apples to apples with to determine how much a property will make uh any any kind of ornamentation on there that you'd like to add John no that's perfect that's a nice little uh recap of everything we've gone through I know we got a lot more to go through so we do all right so what's next like let's say we start kind of picking our com set and by the way I think airdna actually has in they have a beta that I have access to I'm sure you do too where you can start creating your comp set and saving all of these in a in your own dashboard have you gotten access to that or no I've said too much forget I thought maybe that was more public than not just kidding it doesn't exist um okay so what's next like let's say we use the criteria that we just talked about review population track data what are we doing now to kind of start determine determining like how much is our property gonna make we're we're kind of now in the throws of analysis yeah so this this what you actually want to do here and and maybe you've already done this step but I'm just going to repeat it I always repeat it is I'm actually going to go to the property that I want to analyze and I'm going to try and memorize every single last thing about that property now I look at a ridiculous amount of properties on a daily basis um and so maybe you you know as the person who's watching this and and trying to do the analyzation yourself you've already studied the property inside and out but that is truly the next step like you have to understand uh how big of a backyard do I have how flat is that backyard uh how big is the dining area can I fit you know a six table six people at that table or can I get a 12-seater table um you know how luxurious is the kitchen or how luxurious should I make it how big is the uh living room that I'm looking at can I fit a pool table and a in a full-size coach down there or can I just get a couple of small games in there and that's about it right um You you know do you have a good view and if you do have a good view how good is the view you need to understand the property that you're looking at like the back like as best as you possibly can right pick any property and we'll just you know go through it you know the first thing you're looking at here is the lot size um 8,500 square feet that's that's somewhat helpful to be easier to actually look at the backyard uh you have two bathrooms to your four beds uh just over 2,000 square feet um those are the sort of core things you want to look at right away then you click into the photos I can say really fast that the lot size you know this is kind of where we get into the corroboration side of it uh which is talking to a local in the heights this is my neighborhood all the lots are 6,500 square feet or less so 8500 is actually considerably larger than the average lot in this neighborhood so that's actually good to know because now you know this is a maybe not so close to other neighbors type of thing but sorry carry on yeah no no no that's local knowledge so helpful um yeah in this point you would just click into the photo and scroll through the photos and again try to figure like that first photo is not really going to show you the backyard well enough but you just keep going and take a look at the that's a huge dining table room dining living dining room um a good siiz kitchen it's got some more seating around the island it's also a bit more newer more luxurious like you can add things to it uh big old Pantry that you got there the living room is going to be large enough to get like a good siiz couch in there it kind of pushes right into the kitchen which is fine um so far all I've seen is one living room so there's only one living room here so I don't have an additional living room to put a game room in there the bathrooms are going to be really nice and the bedrooms are good but I'm not going to pay too much attention I can see the backyard is it's got obviously has the pool it's got a little bit of space on the right and the left side and kind of behind it but not a ton looks like there's a covered patio space there for me to get some additional seating and sit in the shade I think no not even so now we get it from this angle you can see where that chair is there there's no real shading spot so i' have to either put in a Pera or add an umbrella um which you know there's a good amount of concrete space there for me to be able to do that for somebody if I wanted to and so I'm trying to think like what do I do what can I do in all these additional spaces here and is that enough room to is that enough room the the thing is is at this point we don't know if that matters or not all we're doing is just memorizing the property as you're going through it I even think the the um plants that are kind of right on the pool there if you go up just a little bit on the left hand side of the pool are actually going to give it a little bit more character Oasis Vibes yeah right Oasis Vib people love that stuff and so that that's a nice little feature to have you also have a ton of room for sunbathing chairs there because the way that the concrete kind of steps out right around the pool it's like perfect we have space for that right um those things I'm looking at you even have a nice path to a hot tub that's already there you know that's just going to tell me I can save some money on either adding in the path or the the concrete PAAD that's underneath that hot tub um you know things like that so anyways you get the idea there's a tiny house very small house um yeah there you go like that's the idea right is just try to pick it all apart again we don't know if it's good or bad this backyard might be perfect might be larger than everyone based off what you're saying it is a larger y lot um or it might be way too small to do anything to actually compete in that the percentage that we need to compete in do that make sense yeah it does yeah so we're basically locking in kind of what are the notable features of this property this four bedroom two bath so that when we start looking at four bedrooms in air DNA which is kind of The Next Step here is to kind of start narrowing it down we can start putting together a list of Apples to Apples comparison correct now with that being said um I just did seven days of two-hour live analysis uh leading up to Thanksgiving and I tried to analyze as many properties as I possibly could during that time period And I actually found I realized a little hack while I was doing this to speed up the comping significantly and so I I just learned this last week so okay um I'm here first yeah I'm gonna need to share my screen and uh show it'll walk you through this process and it it really is like a I don't know how I haven't done this forever ago but oh hey really fast let me say thank you to LP Berserker G gave us 10 bucks wow look at that made money on a live stream yeah yeah I'll venmo you half we'll split a burrito yeah we don't have venmo so I'm gonna need you to wire that five bucks you don't have MMO in Canada for real no we do not yeah oh man different Bing system crazy thank You LP he wants to know about 77650 yeah if we have time here at the end we can pop it open and give some anecdotes here but go ahead and share your screen can you see it right now let me pull it up here there you go all right so what you do is you take your you go to your underwriting sheet before you ever go to air TNA okay because I promise you this will save you a ton of time so let that property was $799,000 that we were just looking at let's say that we're putting 20% down just to keep things easy um we got a 3% closing rate okay and we have a 7.5% interest rate and it's a 30-year mortgage that we're getting all very very very standard stuff okay now let's say as well that we got to put $75,000 into that property between design amenities $75,000 is going in there ignore all the tax stuff okay so what we have is a total out of pocket of 235 that we got to put towards that property the first thing here is can you afford that right if you can't find a cheaper property but uh let's say you can then you'd move to the next stage and the next stage is the uh the revenue and the operating expenses are the two things we're going to look at here now what you could do is go to the operating expenses and you were going through this R before we even got started and add in what all the operating expenses would be okay let's do this extremely quickly so let's say your internet's going to be 100 your water is going to be 50 uh your electricity is going to be 200 your natural grass is going to be 100 Pest Control is 100 you got a pool in the backyard so we're going to count that at 150 you do have some front lawn so since you're not a local you're going to have to do that we're going to put another $100 in there for you know software usage um to clean that property every single turn is going to cost you 200 bucks let's say you're you have seven turns um then your your supplies such as your soap shampoos things like that are going to cost you another 100 bucks a month you're going to manage the property yourself so we can leave it there your property taxes you could then go to the Zillow link and scroll down and you'll be able to get your property taxes I'm just going to put it in here as let's say it would be 2500 divid by 12 um let's say you've got you know $150 in Insurance your your Capital expenditures so like the repairs that you might have to do such as your roof we're going to put a reserve off to the side of 250 I think there was a $3 HOA on a monthly basis there so we'll add that in times that by 12 and uh you have no PMI because you put 20% down and so then Therefore your total operating expenses is going to work out to that amount right and this here not complicated at all you are just talking to some locals what the utilities are you're you're calling up some cleaning companies to figure out what they price you're adding it all up and now you're at 3700 okay so we're going to take this number of 3700 and we're going to place it over here in your oper operating expenses and now we're looking at 3,700 okay so that make sense Rob yeah I think so okay the the last part that I want to do here is you can see this line that says free cash flow right and then you also have cash on cash is the other one right below this one so a lot of people getting into the Airbnb space are doing it because they want cash flow and so if that's what you care about more than anything then it would make sense to figure out how much cash flow the property needs to make for you to even consider reviewing it oh yeah yeah yeah uhuh yeah so let's say this property made $125,000 in this case and if you were to self-manage it the property would make $41,000 a year most people are going to be pretty happy with that right but some people may not be or sorry what you want to do is you actually want to figure out where this breaks so where you are like I will not move forward with this property if it makes that amount of money and so let's say it's $100,000 because at $100,000 you'll make about $16,000 for the year just over $1,000 a month and let's say you're like I'm okay with this but nothing lower right this will speed up your process significantly because now all you need to do is hop over to airdna and look at the properties that are four bedrooms in the market that you were just talking about Rob and see uh what the properties that are making $100,000 look like and if your property is worse than those properties then you'll make less than $100,000 if it's better and you have things that they don't have then you'll make more than $100,000 and all of a sudden you now only have to look in the range of the properties making $100,000 which I'm going to stop sharing I'm to let you do that on your end no I like that um that's that I call that the back of the napkin scenario and basically I don't usually do it in the spreadsheet just because it you know it takes more too too much time but it's the same concept where I'll say like okay well let's just math out like the basics right $2500 mortgage plus uh $1,000 in cleaning fees every month plus $500 for utilities plus $1,000 miscellaneous that's probably capex and maintenance okay $5,000 a month times 12 so $60,000 a year is just what it's going to cost me to keep my basically my my lights on right and then you can from there sort of reverse engineer same exact thing that you're talking about if it's a half a million doll house and I've got to put down a 20% down payment which most people do then that's $100,000 down plus $50,000 for Furnishings I'm in $150,000 total and if I want to make a 20% return then my property has to make $330,000 in profit so then I would take that that $30,000 profit number I know I'm going fast here add it to 90 add it to the $60,000 number and I tell myself this property roughly has to make $90,000 just for me to squeak out a good profit or a good return I'll then go into airdna and if all the properties are making 50,000 all the top performing ones then I don't even bother kind of running this analysis even further yeah yep we're saying the same yep you're saying the exact same thing F figure out what it needs to make and then go look at the homes that are making that amount instead of looking at all of the properties just to realize the property is only going to make $50,000 like you just said you wasted all this time when you could have just you know is it gonna make 90 990,000 no okay let's move on yeah because you can discount or you can basically save so much time like if you know like I could tell you in this neighborhood and that's why my neighborhood in particular uh in Houston like I'm never worried that someone's going to steal my my location or you know like you know copy me because I know it's really cost prohibitive to get in this neighborhood the only reason that I have airbnbs here is because I got one seller finance for 3% interest 10% down that one's actually killing it next month and then another one is a house that I bought three years ago that I live in and I just happened to get in at a really good time so kind of knowing the heights for example I could tell you that a six bedroom is it a six bed yeah six bed three bath with a pool is gonna be well over a million bucks shreen just you know yeah there you go I can I can just tell you very quickly like looking at all these right that a a property like this in this neighborhood is gonna oftentimes be 800 to 1.2 million and in Texas dude the property taxes are so bad I just know that oh yeah I probably shouldn't be like I probably won't be profitable in this neighborhood so I think that's kind of what you're saying right like look at the quality of the house go to Zillow and start seeing how much it actually costs yeah that's exactly what I'm saying right so you're a um you're hyper focused in on this ZIP code probably because you know the market a lot better than I do I I typically would open it up a little bit more um but essentially what we're trying to see here you can see there's uh the first three properties are doing about 100,000 if not more out of 350 listings which is what it says right at the top there um therefore don't buy a property in that area if you need to make $100,000 because the chances of making $100,000 is g to be really low okay that's a good way to look at it yeah like the and I know that you you don't have the filters on either so you could add the filters and it' lower that number by quite a bit but yeah if we're trying to go Apples to Apples I'll just pull up my listing um four bedroom three bath you know like we we can and this is really we we should have probably covered like like filtering this down a little bit but in this neighborhood there's really not that many four-bedroom three baths I suppose well you should the other go to the click that again and go to performance at the top right the uh performance metrics and then scroll down to the reviews and days available so remove anything that's less than 271 they don't have an option for 250 and then uh oh okay so I I I just do this with the man with you know manually pulling it out but I think that's fair as well and then you get rid of those ones click apply and there are zero in your markets that are four-bedroom three bath now I would strongly recommend not do just four bedroom three baths I would leave all the baths as is um because it I haven't seen a huge difference with baths and then I would also look at three bedrooms to five bedrooms because sometimes there's killer three bedrooms and sometimes there's bad five bedrooms and you could beat those ones and it gives you more data but yeah I'm with you I I do typically I will open it up that way it depends on how desperate I am for the comps right like if I want if there's like 100 comps and I want to narrow it down I am trying to get to that 43 but then if we get down to there's not that many comp then yes I will then start to kind of lower it because I know if a killer 3bedroom is crushing it then a four-bedroom has a chance to kind of top that as well yeah exactly I I would also take a look at the fives though as at the same time just to ensure that there weren't any like fives that were just Out Of Reach completely um six seven eights those are going to be in like a different category but yeah you can see the four see there's only fours and threes so no five bedrooms that's actually a good thing to see uh because if there were five bedrooms you're you're competing against that but for some reason there's not which is kind of cool there's this one but I mean this could be bad data you know we'd have to look at it for sure yeah um yeah it's interesting this property's been in Airbnb down the road for me for for a long time and it I I don't know why it doesn't make more money it's a pretty good property um I making making more than this one but it's hard to say so good good question I know it's a little off topic but you're asking you know why doesn't it make more money and uh I thought about this a lot and I think it has to do with the market itself there it's just one of these markets where people are not willing to pay an arm and a leg to be there right if you were to take like the uh the a beachfront property or something along those lines people are dying to get there and they're willing to pay way more to stay there whereas in Houston maybe that's not the case and so there's a an an amount that people are willing to throw at an Airbnb in Houston um in comparison to other places so there's destination places yeah does that make sense it does it does yeah so only time will tell uh the property that I just launched down the road it was my house so I'm I'm if I break even on it I'm happy like you know um I didn't buy that with the intention of ever Aran being it interestingly interestingly though I have another property one minute from that that's a lot smaller and it's making the same amount of money uh is a $400,000 property versus a $1.2 million property next month are making the same amount so I'm trying to close that Gap and figure out what it is and I think at this point it's a pricing strategy game but that's a whole another video for a whole another talk about that one yeah camera um cute baby by the way is it yours yes that's my that's my baby I didn't just find it on the street okay cool so so uh any other kind of points that we want to talk through kind of understanding the analysis you I think we can kind of talk about the idea is to kind of find that data set find the competitors and then we are sort of placing oursel within that Spectrum with yeah I call it a range right like you fall where do you fall you're never gonna say like I'm gonna make $100,000 it's like no you'll probably make somewhere between 80 and 120 you know I mean you're going to fall within that range and if you uh underwrite the property that way it's a lot safer um but there is one last I would I think it's the last thing that is uh important to make sure that people keep in mind is that you your property can only go so far right so if you pull up the property that we're looking at right um that one on Zill which one this one the one uh yeah that one okay yeah so here's the thing right if we if we take a look at this property it has limitations the the backyard is only so big right um the interior only had one living room uh it's only a four-bedroom two bath there's only 2,000 square feet it's not a luxury home by any means right but it is a nice home now what I've seen people do is compare themselves to homes where the bones of the home like the frame of the home and the size of the backyard is bigger and better like they they they'll look at somebody on Airbnb who's making $150,000 a year and that person has a massive yard and they've added a lot of amenities to that yard and then they'll go out and or sorry then they're comping a home that has barely any yard whatsoever and they're thinking to themselves like I can make the same amount as them if I design as well not realizing that they don't have any room in their backyard to add all those amenities and then therefore they can't beat that property because they have less value does that make sense it is yeah yeah so you want to study the the the bones of the properties what I call it right the stuff that is unchangeable and and then make sure that you're comparing your properties to properties that are more comparable and I strongly recommend to leave your motions out of it right that's one thing that I find everyone does where they just it's again it's like stretching the data to to make it work for you you'll look at a property that is clearly better than yours and there's nothing you could do about it and just be like oh maybe if we do everything right we can get that and it's like you just can't you just can't I agree yeah I mean this property has good bones it has a good backyard um there's a lot there's a lot to this property but I am curious like apples to apples do you feel like at this point I kind of I know you can't say definitively because we have to dive into the data but this is a pretty nice house in terms of like it's not old it's updated so kind of at this point you know can a will a nicer remodeled house kind of move the needle or is it typically kind of does it come down more to amenities in experience and design because I am kind of curious like how much nicer does this place really need to be to make more money because I think a lot of people get in this like oh I need to renovate my Airbnb for me I kind of feel like this is like pretty good I don't think you would really ever want to invest more money into the Finish outs of this property but I'm curious if you have a point of view there I would I would say it's perfectly fine as is yeah for this home specifically I would say the flooring you know it's not brand new but it's wood it's fine the kitchen's great bathrooms are great bedrooms are great like I wouldn't touch a single thing in this home now mind you we're looking at photos if you get a little closer have an inspector go through it's a whole other story but no this property is is great uh put like if you if you're short on cash this is you know outside of the comping advice but in my opinion if you're short on cash put it into amenities uh put the least amount into the bedrooms the most amount into the yard and uh then the next most amount into like living room dining room and that's pretty well it yeah that makes sense yeah for sure yeah so I feel like we didn't get into an individual property and go back and forth but one of the main things that we did was we helped people understand and the main tool you got to use Erna how to use it what to look for what to avoid um and then from there how to know what your Revenue expectation should be and then what the bones of the property are and then go and find the matching properties on airdna and if you can find the matching properties that's where you start to get more confidence sounds like to me we need a part two a part two to this um yeah um okay yeah um I guess so you said it's a range um and kind of the general idea is we're now sorting all of our different properties kind of in one Spectrum here and or I guess range or we're sorting all the different properties we're finding kind of where we land within those properties and then sort of the the nitty-gritty of it is now kind of listing out all of the different amenities understanding kind of like uh what your property is going to offer in comparison to some of the other top performers and that to me is you get a lot more into the science and delicacy of like where you're actually what you're actually gonna like uh gross from that point um any words of wisdom there I know that's that's probably its own two-hour conversation but yes it is I was gonna say if we did want to do a part two we could do a part two on all that the uh the one thing I want to say though on this I I probably should pull up an example how how are we on time actually is a better question for you how about uh I mean we we're about an hour 15 in so I'd be down to go for like another 15 minutes you think we could cover some goodness there they just left for a walk so I just missed the uh family walk but so which gives me more time so I've got probably a good like 15 half an hour whatever you think is good I keep going let's do it let's let's Crush another 15 minutes um I'll use this time to plug comping Camp which is my four-week boot camp intensive happening starting tomorrow uh enrollment ends tonight at midnight we will teach you how to analyze properties how to evaluate properties kind of how to understand the framework that we're talking about today so you can go out and start making offers on your first Airbnb in 2025 and a bonus that I didn't mention earlier I don't know why I forgot this you actually get a month uh membership to host camp.com which kind of gets you access to my whole Community got a big coaching call hundreds of students in there uh 12 plus courses that I used to sell individually for more than what the what comping Camp is so it's actually a very very good deal if you want to learn more about that click the link in the description down below uh enrollment genuinely Ends Tonight so this isn't like a marketing like it ends it actually does so please please come on in um okay so with that let's jump into kind of like the next piece of this and then we'll round it out give people maybe some actionable steps to do here until we schedule our part two okay so from here right we've done a lot we know how to use the rdna we understand the property and we know how much it needs to make and now at this point what you would do is start comparing it to the other properties which in itself can be extremely confusing actually it's it's very confusing yeah um what I but I have I feel like I've developed a process to build confidence in in what you're doing and then you work your way up from there okay so what I'll explain it and then I'm going to try and show it and what I mean by that is your property will have a lot of benefits that other properties won't have so if we just stick with that same example of the property with a pool so it's a four-bedroom with a pool right in a good location that property if you were to compare it directly to another Airbnb that did not have a pool but it was still a 4bedroom 2 bath I can pretty well guarantee you that you're going to do better than the home without a pool okay because pools just always drive Revenue like that so then therefore let's say this home here is making $60,000 a year and it has no pool you know at a minimum this property with a pool will make at least $60,000 this is what I refer to as a base right you're you're looking at a property and you're like I know for a fact that I could beat this home with this home over here and so now you know okay well I'll make 60,000 the question then becomes will it make 65,000 will it make 70 will make 75,000 and you can just work your way up through these base comps in other words comps that you will beat uh one by one until you get to the point where you it starts to get a little confusing if you'll beat them or not and that's usually where you'll end up does that make sense it does so you're basically trying to find the minimum that you could possibly make on your property and now the work from there is how much more are we going to make Than That Base comp and then we're trying to also find did you already talk about about top comp I haven't I actually I purposely left it out okay okay forget everything I said that that word doesn't exist yeah that does not exist um give me a market any Market pick a market any market for all to what do you got uh let's see what's a good Market what's the here um how about Austin I mean Austin's like you know sure let's F give me another Market a simpler Market a simpler Market something that doesn't have like a hundred things normally I would take it on but for the amount of time we have it's oh oh I see okay market so okay how about uh White Fish Montana all right let's go there um I'm GNA present my screen and we'll figure it out together so what I'm going to do here is I'm going to try and find a property for sale in White Fish Montana right um it's one word white fish thank you there it is all right um so we're all up here is that because of the lake I know nothing about white me either so should be fun um let's pick randomly you decide which home you want on the right hand side here um let's see we going for affordable how about we go to that uh that that second go to the very top that green one that was like 735k yeah that one all right perfect so um that's a property let's do I'm just going to change this to 735 and everything else will stay the same let's just assume so this property needs to make $100,000 on a minimum and we'll keep everything here the same because it's you know maybe it's not drastically different just for the the sake of what we're doing right so we know we're looking at three-bedroom two bath 2,800 square feet um open it up we can see it's got a garage here on the left hand side uh little pathway so it's not connected um they have one living room and then one dining room and decent kitchen bedrooms are decent size bathrooms are decent we have a second living room which appears to be the basement uh it's a really good size so you got all this space back here and all that space over there so very large uh you know big couch over here you can fit a pool table and a couch we got a backyard um there's already a jungle gym there and this is the yard space so a lot of space right here they've kind of tucked this one on the corner to probably the same amount of space on the other side over here as you can see just you know good concrete pad there already in and a decent amount of space nothing huge nothing crazy one car garage uh and that's about it so that's the home these make 100,000 so then what we're going to do is go to White Fish over here and where is the White Fish Montana it's first one all right and then I'm going to do is go to my uh settings here I'll go to Performance just to go over this again I've already removed the days available we only have 271 and above and review count I already have 20 reviews or more okay and then if I go to listings I can look at entire places only I can look at only the houses and then I want to see only the three bedrooms to the four bedrooms because this is the three-bedroom that we're looking at right oops that was bathrooms uh let me change that back and go over here to bedrooms and actually I'm going to include the two bedrooms just in case and we'll go two bedrooms to four bedrooms right cool cool so um yeah looks like we have the white fish area now we go over here to the comps we have 73 comps and this property in the underwriting that we did here if it makes $100,000 it'll walk away with $113,000 in free cash flow so about a ,000 a month which is going to be our worst case scenario okay so then we're going to scroll down here to the properties that are making 100,000 we can see we have uh kind of a hard drop off here oh maybe not okay so 121 112 106 wow we're kind of right in this range right here right very nice properties very nice properties yeah so we can look at this one first which is a four bedroom we can already tell um this is hosted by a management company I'm not a huge fan of using management companies um the data here we can see three weeks ago September you got to go through this every single time let's you say I probably should check that it's good data every time if I'm doing this do you agree yeah I always I always forget too whenever I'm like look blah blah blah I'm like we'll just assume it's good data but yeah yeah it'll screw up the whole thing so this is actually not good data so as you can see there uh from what we could see it went uh May to January to September of 2023 you don't want to see that so we'll we'll skip over that piece of data um we'll go to this one I'm going to skip over this one too it's only on vbo I know we said we could use those but uh for the sake of this I'm just going to skip over it then we have this one here which is a three-bedroom two and a half bath and we got two weeks three weeks October this appears to be good data there's tons and tons of reviews every single month which is the best thing that you want to be able to see and so as we keep going keep going that looks like good data so uh as we can see very quickly not only the home is great but it also has a huge plot of land that it's on and the Airbnb listing is not terrible is it great not NE necessarily the photos can be improved but for yeah but it's a good it's it's got a view it's beautiful it's cool yeah and that home's making 105 right the bones of this property specifically this right here is a brand new build with a ton of land th those are those are the things I'm referring to when I say the bones whereas this property is a small older property that is very clearly not the same I think everyone sees that you can also see that the yard space is a lot bigger right so we don't really need to go any further you can't beat this property but we never use one piece of data right so what we got to do is find another listing that is uh also good data and be able to see if we can rely on that data so this one here you never use one piece of data because you don't know if it's right or wrong it's usually the three to five pieces of data that help you know for a fact if it's accurate or not um this one doesn't have a ton of reviews like June to April is also missing um November and October yeah but it also has like a decent amount it kind of goes back and forth in this scenario i' actually click onto the listing and take a look we can see we have a 0% occupancy in May which is super helpful 0% in October also helpful so it makes sense and 0% in well that was November of 2023 but um it would make sense that they would have no reviews during those months that they had no reviews so then therefore I can trust the data right um even though there were no reviews so if I click into it can most likely trust the data this seems like a ski in ski out type property yeah you can see it's right on the hill right there so this is going to have views of the Hill it's actually on the mountain to be able to go screeing it's probably a condo from what we're seeing it is a really nice well put together listing it has the condo amenities yeah as you can see shalet number five it's it's right there so again that's going to be a better property and then if we go one more property here you can already tell if this is good data um then therefore this is not going to be a great comp and we have three pieces of data this has a ton of reviews we have three pieces of data that are all what we would consider to be good useful data and the homes themselves are clearly not comparable now this is only a two-bedroom but we have the massive yard we have the views and we have a new build so in this scenario we would know that this home that is going for 735 would not make $100,000 and right we wanted to make $100,000 uh it's not going to no matter what we want it to do yeah it almost feels like you can't really make um broad assumptions but it's like based on how nice those properties are uh I don't want to overgeneralize but it's like based on how nice the properties we just looked at are it seems like you'd have to spend considerably more than 735k to get similar properties and then on top of that they're considerably nicer in only doing 100k so you could spin your wheels on this Market but it feels like finding a property that's going to line up in this market might be kind of hard exactly that was and that was a total of maybe five minutes maybe we only looked at one property so I'm not writing off white fish sure but you could repeat that process over and over and over again until you figure it out right yeah I I think one of the interesting things that I find um which gets into the kind of grander theory of comping and understanding this is that someone often like students will come to me and be like oh nothing's comping out we'll go we'll run the numbers we'll do the exact exercise you find but I actually think that running comps consistently and getting your reps in is a bit of a blessing in disguise because not only are you finding what doesn't work you're finding exactly what does work and so if you were to go to that same coment that you just looked at on air DNA we could scroll to the top and say oh look the ones that make 200k every year have this they're this they look like log cabins they have a sauna and now you actually have a pretty clear understanding oh okay now I just need to look for properties here you go to Zillow and if you find out that it's way too expensive you move on but like running comps like this gives you a very good understanding of the winners in every market and now you just have to go to Zillow and look for similar winners and see if that will pencil out if that makes sense that is uh that's actually the number one advice I always give is that the the the comping skill that we're going through right now is a skill that will save a ton of people from buying a bad property right guaranteed like it is the number one skill you can have to avoid buying a bad property however the best way to find a great property is to build a buy box in the market that you're looking into so another words you find a market and you analyze it so thoroughly that you know it works and doesn't work and then you make that property work you find a property that works within that market yeah yeah yeah cool I like it so that that's that's interesting that one um I feel like I got there it's cool that we have similar that we we've reached that because there was one particular moment it was with one of my star students and his name is Ian and we were like analyzing a property in Berkeley Springs and it was like a seller finance two-bedroom house and it just wasn't going to make money he was like dang it the seller finance house isn't going to work out I'm like no but you know what we discovered and he was like what I was like four bedroom log cabins in Berkeley Springs make so much money go look for only four bedroom log cabins because if you can find one at a decent price you'll cash flow heavily and so it's like that was kind of that moment where I'm like oh yeah just like f copy the comps right like find the winners and then go to Zillow and see can you does that price point make sense with the you know what the top comps are making very simple it's not rocket science but it is kind of a cool thing to kind of figure out in the market that you want to buy in yeah that is uh that's exactly it and that that would that really should be our part two if we did a part two because I could go on for a very long time about building out to buy box and understanding it without you there you don't want to over complicated but if you want to get into the nuances you definitely can because the next step to that is like you said the cabins are producing a ridiculous amount of money right what if you went and realize that the cabins are actually way too expensive or extremely limited well what's the second best thing and how much revenue are they generating and are those homes cheaper and then therefore would that second phase of profitable homes or sorry homes uh work out that Mak sense it does yeah okay we'll make that to part two so that will be part two with John bian John if people want to find you on YouTube where do they go you can just look up my name you can type in Airbnb data you're going to see ridiculous amount of videos about me or uh at the Airbnb data guy on YouTube or Instagram cool uh you can also find John in comping Camp which uh is taking place during the month of December and uh we're going to teach this we're going to teach you the analytics and everything you need to know on underwriting analyzing build buy box building and all that good stuff um I think it's a very accessible price point it's four weeks you get a month membership to the host Camp Community which is super great John's a part of that as well uh if you want to learn about that you can go click the link down below I believe that link is host camp.com black- Friday I'm pretty sure that's the thing let let me make sure really fast yeah host camp.com black- Friday um Thomas said what was the airdna promo code Thomas you've been hanging with us since the beginning you can just type in raw built raw built will get you a pretty juicy uh a juicy juice juicy is Juicy is promo and then if you're a host camper reach out um I've got a 25% special deal I don't know if I'm supposed to say that send me a DM if you're a host camper um all right John thank you so much I'm sorry I made you uh miss your your father time um but you were my father for the last hour and a half and I appreciate that course and everyone's father you're you're everyone's D Dada daddy if you will that's what blue calls me H awesome bro okay everybody thank you guys and uh see everyone in in comp camp or raw built next Monday see you guys bye okay end stream I haven't ended a stream before this is awkward this is like when you say bye at the grocery store to someone you run into and then you run into them in the next aisle and you're like oh yeah sorry I guess we are still going to be walking around here for the next five minutes okay bye everybody