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BiggerPockets Real Estate Podcast

948: 10 Rentals in 5 Years by Buying in Overlooked Short-Term Rental Markets w/Jarrod Tucker and Yiwei Cheng

BiggerPockets Real Estate Podcast

BiggerPockets

Education, Investing, Business

4.8 • 16.6K Ratings

🗓️ 6 May 2024

⏱️ 43 minutes

🧾️ Download transcript

Summary

When you think about short-term rental and Airbnb markets, what comes to mind? Joshua Tree, the Smoky Mountains, maybe Destin? We all know about the famous short-term rental markets, but what about the not-so-famous ones? You know, the unsexy markets where you book an Airbnb for a conference or when you’re going to see extended family? That’s right; we’re talking about everyday American markets like Cincinnati, Ohio. But surprisingly, these markets make some of the best investments for short-term rental investors like Jarrod Tucker and Yiwei Cheng. Jarrod and Yiwei moved to Cincinnati for work shortly after catching the real estate investing bug. They knew they wanted to invest in real estate, but long-term rentals only came with measly cash flow that would never support their passive income goals. So, what’s the next best option? Short-term rentals! Unfortunately, Cincinnati isn’t known as a popular vacation getaway, but it didn’t have to be to support Jarrod and Yiwei’s cash flow dreams! Now, five years after the start of their investing journey, they have ten rentals of their own and manage a couple dozen more for other investors. The question is, how do you make money with short-term rentals in an unsexy market? Jarrod and Yiwei walk through their tips for finding the right properties, keeping occupancy rates high, buying real estate when your DTI (debt-to-income) gets maxed out, and why you MUST separate yourself from the basic short-term rentals to reach your financial goals. In This Episode We Cover The three types of short-term rental guests who consistently come to markets like Cincinnati  How to set your Airbnb apart if you’re in a saturated short-term rental market  Tips for higher occupancy and what you MUST have to get more bookings  Scaling your real estate portfolio when you have high DTI (debt-to-income) Using partnerships to buy even more properties when you’re low on cash Why you DON’T need to invest in high-priced, popular vacation destinations  And So Much More! (00:00) Intro (01:36) The Accidental Airbnb Host (08:07) Short-Term Rentals in…Cincinnati? (13:37) Are Short-Term Rentals Saturated? (19:46) Tips for Higher Occupancy (22:31) Scaling with High DTI (Debt-to-Income) (32:24) Advice for New Investors Check out more resources from this show on BiggerPockets.com and  https://www.biggerpockets.com/blog/real-estate-948 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Henry, if you were to put together a list of some great short-term rental markets, what markets would you put on that list?

0:07.0

Well, the Instagram gurus would tell me that you have to have a property in the Smoky Mountains, Joshua Tree, California, or some

0:17.2

beach town somewhere.

0:19.1

But I know there's tons of other really cool fancy places that I'm leaving off that list.

0:23.4

But what about not fancy places like, I don't know, Cincinnati, Ohio?

0:29.1

I would say that that's probably number 472 on my list of short-term rental markets.

0:35.8

Well today I think you'll actually learn something new and how some unsexy markets do make

0:41.2

for great short-term rental opportunities.

0:44.0

Welcome to the BiggerPockets real estate podcast everyone.

0:47.0

I'm your host Dave Meyer joined today by Henry Washington.

0:51.0

And today we're talking with Ewe Cheng and Jared Tucker. They are an investor couple living in, you guessed it, Cincinnati, Ohio. And they are doing highly profitable deals today in the short-term rental space.

1:04.0

And when Henry and I talked to Ewey and Jared, you're going to hear about why investors who like the

1:09.7

short-term rental model shouldn't overlook Midwestern cities that might not be as

1:15.1

sexy as some of the places Henry mentioned earlier because they have a great

1:20.6

approach they basically work to understand what amendingies their guests want,

1:25.6

they listen to feedback, they look at data, and they are able to use that to still make

1:31.5

profitable deals in today's market. Now let's jump in.

1:35.8

Eway and Jared, welcome to the BiggerPockets podcast. Thanks so much for being here.

1:40.8

Yeah, I am so excited to be here. Yeah, thanks guys. We appreciate the

1:45.2

opportunity so super excited. Well I'm feeling a little bit left out because you guys

1:51.7

met Henry already at a conference just this past week

1:55.1

randomly and I was not there so I'm still catching up. You should have been there. I

...

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