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Afford Anything | Make Smart Money Choices

Ask Paula - Should I Be an Out-of-State Airbnb Host?

Afford Anything | Make Smart Money Choices

Paula Pant | Cumulus Podcast Network

Entrepreneurship, Investing, Business

4.73.6K Ratings

🗓️ 25 September 2017

⏱️ 42 minutes

🧾️ Download transcript

Summary

#96: Today I tackle 4 real estate questions that come from the listeners. Chris, age 25, says: Over the next 30 years, I'd like to acquire 15 rental properties. Then, at age 55, my wife and I can retire and travel. To begin, I'd like to buy a duplex, live in one unit and rent the other on Airbnb. Once I gain some equity and save enough for another downpayment, I'd like to purchase another duplex, move in, and repeat this process. However, I'm reluctant to get started for one reason. There's a decent chance that I'll need to move out-of-state within about a year or two. I don't want to be an out-of-town Airbnb host. Should I follow this plan, even though there's a good chance I might move away soon? __ The next caller, who remains anonymous, says: I love your rental property income reports; they give me a great understanding of your numbers. But you have economies of scale on your side. Your payments to your accountant, attorney, bookkeeping software, etc., are spread out across 7 rental units. When I start investing, I'll only have one unit. How well would your worst-performing property fare if it was your *only* property, and you had no other economies of scale? __ The third caller, "Anonymous from Orlando," says: I own my house free-and-clear, and I'd like to buy another one. Should I take out a conventional mortgage on my second home? Should I cash-out refinance the equity in my first home? Or should I open a HELOC? __ Finally, our last caller asks: I'm interested in rental property investing, but I don't want to deal with any hassles. Should I use a turnkey company? Tune in to find out the answers! - Paula Find resources to things mentioned in this episode at http://affordanything.com/episode96 Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcript

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0:00.0

You can afford anything but not everything. Every decision that you make is a trade-off

0:12.1

against something else. Saying yes to one thing implicitly means you're saying no to

0:16.1

another. And so the question is, what do you value most and how do you align your actions

0:22.2

to reflect those values? Answering these two questions is a lifetime practice and that

0:26.9

is what this podcast is here to explore. My name is Paul Hantt, host of the Affordable

0:31.0

Foundation podcast. Every other week I answer questions that you, the community, the listeners

0:36.1

have sent in. In some of these episodes I answered general questions about any money or

0:42.3

work or productivity related topic. And in other episodes, because I tend to get a lot

0:47.2

of real estate questions, I will occasionally dedicate a full episode to specifically real

0:52.9

estate related questions that you all have sent in. That way if you're interested in

0:56.6

the topic of real estate, you can tune in. And if not, then that's cool. You don't

1:01.2

listen every episode. So today is a day in which I'm answering specifically questions that

1:06.4

you've sent in about real estate. And our first one comes from Chris.

1:09.2

Hey, Paula. My name is Chris. My wife and I moved to Orlando in the beginning of the year.

1:15.7

My wife works as a manager for a YMCA after school program and I'm a flight instructor building

1:22.0

my time to become an airline pilot. Our dream is to build passive income through rental

1:27.1

properties over about the next 30 years. And so that by the time we're about 55, we want to be

1:32.8

financially independent, have about 15 or so, buy and hold type investment properties,

1:40.0

for me to retire from the airlines at that point with flight benefits. And from there out,

1:45.2

be able to travel and see the world without any job obligations outside of those

1:51.6

rental properties. The thought or the plan of how to do that has always been to purchase a duplex,

1:59.5

live in half of it, run out the other half, pay it down enough to be able to buy another one and

...

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