Joe and Katie transformed an underused eight-unit building into a super profitable Airbnb that makes $140,000 per year.

But it didn't all start very smoothly.

And we were waiting on AC part that basically took all summer for us to get.

For the whole summer, we were down three units.

In this episode, you'll learn how they found, financed, and managed the property on the way to $140,000 per year of cash flow.

People didn't realize that we were this new property just right here in downtown Calisville.

So we're receiving a lot more repeat business.

We're also popular for Glacier National Park.

How they leverage technology to automate their customer service.

As soon as they book, they get their code.

We use smart locks. So they don't even have to talk to anybody, which most people love. But also how they over deliver with a human touch. So we leave for every single guest a handwritten note card with their name. Oh, you're here for your son's soccer tournament. I hope he crushes it. We put it right there, right when they walk in with the welcome light. And that's the first thing they see when they walk in.

And now we're going to dig into all of that and more.

All right, Joe, I want to talk all about this building that we partnered on.

We bought about a year and a half ago, is that right? Back in March of 2003, I want to spend a lot of time talking about the amazing job that you and Katie have done, just like the design of it, the customer service, the experience of staying there. I've stayed there myself. My mom stayed there. Our family stayed there. It's really, really amazing. I want to talk about the numbers first. And I think the numbers are always interesting for

investors who are thinking about this. So I'd like to just dig into kind of how it all started with the numbers, maybe start with maybe what the price was listed for whenever we started looking at it. And then ultimately, what do we buy it for and what do we spend kind of remodeling it, getting it ready to rent out.

Originally, it was listed for $2.5 million.

We were able to negotiate that down to $1.75. And the remodel costs were $200 and just a little over $230,000. I think it was $23,000. Got it. We also had some holding costs and some reserve funds. I just in my mind, I was thinking, when I went back and looked our books, I think it was like over $2 million, like $2,000, something like that, that sound about right for the total cost we had in the property? Yeah, slightly over. I think we use commercial financing, so they required us to keep a reserve account just for their safety, just right around 2 million. I use 2 million for easy math.

Yeah. I do too. I think about that. All right, two million round numbers, which is a big number, right? Especially when we, you know, boy been buying 200,000 dollar properties or 500,000 our properties. But what I thought was cool about this. And I know we had another episode we did on sort of the more of the negotiation of this property. So I'll put a link to that prior episode we talked about back last year right when we bought the property but what i thought you did a

really good job of was you got to know the owner. The owner is what who built this property. He done a good job, you know, using as a short-term rental, mid-term rental. But tell me a little bit about the opportunity you saw. And we're going to get into like the operations of the property. But, you know, we bought it for 1.75 million. He was asking 2.5. But when we bought it, you know, the income on the property wasn't that impressive. Like we got an appraisal on the property for right at 2 million bucks. We didn't get like this massive discount on the surface of the property. But tell me a little bit about why you were optimistic about spending two million bucks to buy this property,

kind of what you saw for it. Like as you said, the owner, he built it in 2006. He built it for

himself. And after getting to know the owner a little bit, I realized he was a very meticulous guy,

which is amazing. He lived on site, actually. When he owned the property, there was actually

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