MB 178: 10X Your Multifamily Income with an Extended-Stay STR Model – With Al Williamson

Real estate investors are cautious when it comes to implementing a short-term rental (STR) strategy because of the regulatory uncertainty in the space and the extra expense of hotel taxes. But what if we could enjoy the benefits of an Airbnb model WITHOUT the uncertainty or the extra expense? Al Williamson leverages an extended-stay strategy targeted at business travelers to 10X his net income on a small multifamily property. Al is a full-time real estate investor and Managing Partner of Easy Corporate Housing, an extended-stay STR housing solution for business travelers in Sacramento, California. He also serves as a speaker, author and mentor for investors through Leading Landlord, a platform designed to help landlords increase their income and equity. Al has developed creative strategies for growing NOI as much as 10X above a conventional landlord operation, and he shares those tactics in his books, Building Wealth with Inner City Rentals and 40 Ways to Increase the Net Income of Your Rental Property. Today, Al joins me to explain how he quit his job as a civil engineer with the cashflow from an 8-unit property in an inner-city neighborhood. He describes how he went about fixing the neighborhood and discusses what inspired him to experiment with a short-term rental strategy. Al also shares how to determine your target market and walks us through the six types of extended stay customers. Listen in for insight around the benefits of offering 30-day stays and learn how to identify an ideal property for the extended-stay STR model!    Key Takeaways How Al quit his job with an 8-unit class D property Reposition inner city neighborhood Leverage pay-day rent schedule Rent bicycles, coordinate internet How Al got started investing in real estate Started with house hack (3-unit building) Maintenance costs eating up cashflow Why Al purchased the 8-unit class D property Value of 3-unit quadrupled, ‘let’s do it again’ Remove blight (gangs, guns and prostitution) How Al went about fixing the neighborhood Exercise leadership + create sense of community Easy as calling in broken streetlights, parties Offer cash for keys as necessary What inspired Al to try a short-term rental strategy Travel for work himself, hated hotels Net income = 8 to 10X traditional model How Al implemented a short-term rental strategy Set aside single unit for business travelers Realized benefits of one-month threshold The best areas for an extended-stay, STR strategy Near Extended Stay America, Residence Inn Use Airbnb as backup plan Al’s advice for determining your target market List on Airbnb and see who comes Build relationships with local businesses The top 6 types of extended-stay customers Vacation travelers Medical Military Student housing Insurance Temporary Why Al only needs a few units to be successful Huge income per unit ($1800/month) Single unit covers cost of mortgage The ideal property for an extended-stay STR Margin far above market rent Furnish according to target guest Connect with Al