How to Host Insurance Claims and Make $8,100 Per Month with Midterm Rentals
In this episode with Jesse Vasquez, we dive DEEP into how to host travel nurses, corporate housing, and insurance claims.
Jesse discusses his latest deal where an insurance company paid him $8,100/mo to host a family for 6 months.
Before you ask, YES! It was all paid for by the insurance company.
🧑🏻🏫 We also cover🧑🏻🏫
- Reviewing listings that work!
- What markets are best?
- How to mitigate against ordinances?
- What are the tax implications!
- Direct booking or booking platforms?
What would you say if you can make $8,100 a month for six months, completely guaranteed and paid for by the insurance companies? This is exactly what we're breaking down today. Everything mid term rentals with Jesse Vasquez.
Welcome to the cash flow. Happy Hour podcast. I'm your host, Josh Baldovino.
And on this show, you can join us live as we interview investors and share houses they are increasing their cash flow. So grab a drink, and let's get into it.
And Jesse is a mid term rental, which means hosting to travel nurses and corporate travelers and he is the ninja behind it all over at Airventure hosting co.
Jesse, how're you doing today?
What's up? Dude, the intro made me want to grab a beer like really bad. I wish I had a beer right next to me. No, but I have this usually have this at 430. So I guess right now it's coffee. And what do you have in your glass?
I got a good old fashioned tap water here for everybody. I'm having some. We don't really have good tap water out here. So I'm kidding. It's up Alhambra get delivered.
So real quick, Jesse. For those who don't know who you are. Real quick. Tell us who you are, what the origin story is, and what the heck is mid term rentals?
Yeah, so my name is Jesse Vasquez, real estate investor, entrepreneur, all that stuff that makes me sound way cooler than what I actually really am.
I got into the mid term rental state, I actually worked in healthcare. So for those of you that Josh, maybe you could put a link up to the top to our first video that we had, I really break into what my story is on that. But I'll just leave this as a really lame, broken down version. I just started working in healthcare, saw that there's travel medical professionals coming into the market. And I realized Holy shit, there's an opportunity here to house these professionals, because they were staying at Motel Six, they were staying at places that weren't desirable and not good areas. And I was working on the hospital floor. And they were telling me that. So I finally realized like, there's opportunity here they're paying X amount of money to stay in these properties. And I can house them.
So it all kind of started based off of that. This is like pre COVID tons of medical professionals, even prior to COVID happening, this area in the Central Valley where I'm located in Modesto has always had a nursing shortage. And the shortage is all over the US all over the freaking place. And there's a lot of opportunity for a lot of people to really take advantage of, you know, this shortage in the staff, unfortunately.
So this has been your niche and your focus and how many I guess how many midstream rental units are yet now.
We have, I am co hosting 15 ,We have nine mid term rentals right now.
And then in terms of numbers, like break that down so long term rental could potentially do what in that same unit, just you know, generalized blanket, a short term rental, like your regular vacation rental would do what and then whereas mid term rentals fall in that scope.
So my markets, there's a seasonality to them. So I do what's called the hybrid model, but I'll talk about that here in a little bit. So long term rental is just given average three bedroom, two bath would probably do about, I'm gonna say right, around $2,200 A month, as a long term rental. Which, I mean, if you're watching this in the barrier, you're thinking like That's cheap. But here, the housing rental market has gone up like a lot, incrementally over the last two years since COVID. So 22 to $2,300 a month, as a short term rental, I could probably make about on that same three bedroom two bath during peak season around 6k. And as a mid term rental, I can do about 5,000, 5500 to 6k to so between five and 6k, just depending on what contract I have in place, who's coming, how long they're staying, things like that. So yeah, there's a lot of opportunity, not only in the short term side, but also on the midterm side to x, what you can from almost 3x What you do with the long term, it's,it's crazy.
And without all the headaches of the short term rental per se. So that's, I mean, and that's why our first video kind of just went viral. Because when that was my light bulb moment we were talking, and it's so fun to see all the comments that are now on there of just everyone just crazy.
I think, Josh, when that came out, we're like, we're coming out of COVID this that was like, what, six months ago? So nurses were under the spotlight. They're under the microscope, they're under the what does that call the monocle? You know, under like a microscope, let's just leave it at that .
So nurses were so under the microscope at that time so that people were realizing like holy crap, there's a lot of travel medical professionals, if you realize COVID there was not enough nurses and it was being publicized through the media that there's not enough staff people were quitting people that were working for a long time. There's always been nursing shortages all over the place, like all the time COVID just highlighted all those issues, you know, because of the pandemic.
Those issues are still happening now today. Post pandemic world, we're still running into the same exact situations. And I think that a lot of times, us ,as investors don't realize the opportunity there. There's not enough people in the sector and the people that are in this sector, they realize, like, holy crap, I landed on a goldmine. And I don't either want to tell anybody about it, or I do want to tell everybody about it, which is where I'm at, where I'm like, hey, I want you guys to succeed. I want people to kick ass and do well on this. And that's, that's what I've been trying to kind of push and have people learn how to do this. Because it's, it's hard. It is not easy.
Yeah, I mean, it's sales right at the end of the day. And so real quick, just to talk about the benefits of midterm rentals. This is the last time right, and then I promise we're gonna get more deep is, you know, so why. So why is mid term rentals better than short term rentals? We already know you broke down earlier that it basically makes two to three times more than your regular long term rental. But why do you prefer that over the traditional short term rental model?
I had a student tell me the other day, she's like, I only need to have four people booked my property a year. Does that ring like does that if you think about it in those terms, like how many hundreds of people do we host as a short term, I can't even tell you how many how many people I've hosted in my lifetime as the short term rental. But in reality, we only need to have four guests that stay, and do those four guests, I'll still make the exact same amount of money ,give or take a couple grand here and there that I would as a short term with less of a headache.
So a lot of people that get into mid term rentals, or they just don't have the time, they don't have the bandwidth to be able to take all these things on there either having they have a nine to five job that they're working on to eventually get out of, you know, get out of that at some point. Or they want to build enough build enough business that they can eventually just do this on their own, or have a side hustle. And I think that's where it's really, you know, I Josh, dude, I forget that I have nurses in these properties. Like that's what I love about it. With short term rentals, you always have somebody calling you up, you know, you have a short term rental, Josh, hey, this is leaking or this is going on? Or hey, there wasn't a trash bag in the toilet or whatever. There's trash bags and toilets now. But you know what I mean? Like, there wasn't a trash bag in the clinic, some of these little things in with nurses, you don't have that. Like, they'll come in, I forget through there. They're quiet. If there's an issue with the toilet or sink or something, they'll say, hey, just something's going on. We'll send a handyman over boom done. And it's nothing like it's nothing like short term rentals at all. It's the opposite.
Yeah, I mean, that is, I mean, you know, just for context for the viewers as well. So you know, our Joshua Tree Airbnb is up and running, and it's doing great, it's phenomenal. But the amount of times I've InstaCart, it thinks the house already is ridiculous. He does customer service. You know, I'd rather spend 30 bucks on some kind of InstaCart then I get the five star reviews. So especially if you're charging 4 or 5, $600 A night, especially during Coachella anyways. You know, the mid term rentals. I do want, you gave me kind of your latest listing. And so let me bring this up right now. And for while I bring this up for anyone who's watching right now live, thank you, by the way, and you have the opportunity now to ask some questions directly to Jesse. So we're gonna do a deep dive of one of his listings, and then afterwards, we'll get tactical and ask some of those questions that you have. But, Jesse, what is this? What are we looking at here?
All right, so this sucker here, the daisy oasis with the pool. So I bought this property in Modesto on the MLS market for 540,000. I think and I know what you guys are probably thinking right now, why the hell would you spend that much money on a property? Well, first off, I knew that I was going to make as a short term rental, around six to 7k a month, easily. As a midterm rental, I was probably looking around 6k a month. And we've been doing that we kind of we did something a little bit different than we would typically see on, you know, especially in my market. So I wanted something that was kind of fun for people to come to or they felt like they weren't in Modesto, or they felt like they were somewhere else. And to be honest with you, man, I've just rented this place out for $8,100 a month, for six months. So if you guys recently go to my Instagram and watch a video where I said how I made 49,000 Just by sending an email. This is the property that I'm referring to hear. Talk about mid term rentals. So six months out of the time, there was a family that was displaced locally from a fire. And they the family was staying in three different hotels because they have a couple of 18 year olds, so they all had their individual rooms. And the insurance company was paying over $10,000 a month just for them to stay in that in the hotel. So the family was just like we don't want to be in a hotel anymore. We can't eat dinner here anymore. I happen to gather and this is something that I really think everybody needs to start doing right now you need to be you need to think about your business as an actual business. Even if you're getting started right now. Start putting together templates of insurance companies that are local in the area. Corporate insurance companies like farmers nationwide. Every single one of those divisions has a specific person that deals with people that are displaced Are fires and you would not realize how often that actually happens. And if you have properties, you can rent them out for four to 5x, what you typically get from a long term rental. And that's exactly what happened for me. I put together this data list, I sent an email out. And the second email that I sent to them just to follow up, hey, we have a new property. Here's what we have going on. I got an inquiry back. And the, the housing provider at that moment said, Hey, we have a family that's been displaced, they want to stay somewhere. Can I Can you send them? Can you send me a couple of links, I'm like, Hey, I just got this place up. It's open right now. Let me know what you think. And just like that, boom, they wanted it. And I shot a number I thought at $100 was going to be too high for them. They messaged me back and said, perfect, we'll take it.
And that was the agent, or the insurance company saying we'll take it.
That was the insurance company saying, they'll take it that the guests so they sent they sent that place. My specific the the handle that you have now that you were just looking through, they sent that link directly to the the person, the person that's been displaced the family, they went through and they're like, Oh my God, we love it. Plus, this is near where I work already. Anyway, so we want to dive into that we want to get it and that was it literally right then and there. It was just like boom!
What is the budget for like $8,100? Like if you can get that probably on your short term rental as a vacation rental? Like you'd be stoked about that. I mean, you obviously you did a great sales tick or tactic where you started high. But like, what is the usual amount? And why did they pay so much. So this property here I had it had it listed for it's on an algorithm on short as a short term rental. So it can go anywhere from $300, all the way up to $500, depending on like, you know, if there's a concert coming into town or something, so I based that price off of what I would rent it out as the minimum amount that I would take. So it's at 100. Okay, so if you did three, if you just did $300 A night, for 30 days, that puts you at nine grand, right? My weekends are always going to be a little bit higher, and anybody listening, if you have a short term rental, please charge more for the weekends, because people will book that and they'll pay that. But that's where I base it off of. So we kind of did like a 15 to 20% deduction already just based off of that. So again, the insurance company was paying over 10k a month to have them in a crappy hotel, the Residence Inn. And, you know, as a family, like, you want to make sure everybody's together that you can eat together. And that's what they brought up that, you know, we want to have a place where the kids can go jump in the pool, and then we're going to be there for six months while my house is being rebuilt. And I talked to the owner, myself, or the person that was displaced myself, she told me her whole story. And yeah, it's a win win, man, I'm able to help somebody in the community. I'm also obviously able to make a pretty, pretty decent amount. So my mortgage on this place is 2000. Plus, I have about a $600 per month, you know, taxes that I pay. So all in I'm about $2,600 in let's just add an extra 500 there for water, sewer garbage, electricity. So all in 3100 I'm getting at 100.
Wow, dude, just okay, if you guys, if you're watching this right now, and you want one of those deals, like let us know what you think of that deal in the comments. You can drop any kind of fire emojis or whatever motors you want, just for fun. But God, I mean, one, I would love to have that much just booked consistently, like that is amazing.
Six months, Josh, like six months, in my contract, I get to go walk that property every month, because we know when we have long term renters, they tend to mess things up in the contract that I have in there. I walk through the property every month. So I get to go in see what's going on see what's doing there. I met the family already. They're really nice people. And that's always been my issue is like I'm worried about people staying for X amount of time because people will thrash your property. But you got to make sure that you put clauses in there to go in and take a look and see what the place looks like. You can do that monthly just like a long term rental would, you know I'm staying on top of the owners are the people that are staying there right now. And you know, really just kind of connecting with them. So you have to do those kinds of things. But do it all came from an email?
Yeah, and give cleaners coming into like twice a week or some art like twice a month?
No. So one of the beauties about midterm rentals is you don't you could have cleaners that come in that's an extra added bonus which we do that but with these particular people they didn't want to have that they're obviously going to be home. So yeah, we're not doing that. But you don't have to keep buying stuff either like consumables and you're probably going to ask this in a little bit with midterm rentals. You just literally have you know, the first month or whatever it is that they need, you know, toilet paper shampoo, most people that are coming in are going to bring their own stuff anyway, they're gonna, they have their stuff that they're used to. Typically people that are short term renting will just use whatever is there. And then they'll build they don't care. But people are gonna be staying for longer term mid term rentals, like they aren't going to care what shampoo is there. They're not going to care. You know, they're gonna go buy their own stuff anyway. So you're cutting a lot of expenses out just by having somebody in the midterm space as well, too.
Yeah. And so, okay, you got this directly through that insurance contact, like how does someone find someone like that locally to just even reach out to. Yeah, so you just Google, good old friend Google, you just go on Google and you type in insurance companies that literally it's that easy local insurance companies, and you just call them, there's a billion of them. They're all over the place. There's insurance companies, Mom and Pop insurance companies all over the place in your in your area. So I just called started getting together lists of who the individual brokers are, what their email addresses are. And then I start putting it together like a tickler. So I'll send an email. biweekly, if we get a new property that comes onto our market, we'll send an email saying and that's exactly what happened. I just said, Hey, guys, just want to let you know, we have a new property, it's downtown Modesto. You know, it's a three bedroom with a studio. And this place has a pool. You know, it's really nice outfitted we spent X amount of money having an interior designer come in here, just want to let you know what's available now. Wow. Literally all it was, that's what it was an email it sent down. I think we forget that we overcomplicate the crap out of things that we need to do all these extra steps. But really, what it's all about is consistency, The more consistent you are with anything that you're doing, the better you're gonna get at it, the more eyes you're gonna see it. Even if you think they're not really reading it. You know, I love it.
And again, if you guys are watching you have any questions? Let us know in the comments. I'll pull them up in a second, I have a few more questions about this listing in general. So okay, so I noticed last time in our part one episode we talked about, you can also listed on Airbnb and VRBO, the other booking platforms and of course, furnish finder was kind of a big, I think, focus for that first one. This one though, let's talk about direct booking. Huge. So how essential is it to have as you're starting to reach out even to your hospital contacts, your insurance contacts, like how has this How's having a direct booking site played in kind of your success so far.
So this is something I explained to my students to be more professional you look, the better it is. So if you're sending somebody a cold email, have a have a landing page that you put together so that somebody can, as an insurance agent can go in and just see, let's just say five things that you're doing for people in the community. So that's, you know, you have a house that's available you're working on, you know, creating a list for insurance companies for people are displaced, just basically stating something. So the the way I look at it is you're selling your opportunities to these individuals that potentially could use your services. And that's what you should have displayed on your landing page. And you can Josh, you know, you can get a landing page put together for less than 100 bucks, literally, you just buy a domain and you have somebody from like wix.com go in and just create a very, or you can even create it yourself a very simple landing page where people can just see what you're doing. Maybe a picture of yourself doing a thumbs up, you know, something that's so shows that people can see.
So this is the page that you sent to the insurance agents? Or do you have another kind of, here's what Airventure hosting CO is view all my listings, what do you want them to, I have another page that they go to and look at so and then I have, I even have flyers that we send out. This is stuff that I show people in my class like I'll put together these flyers that will are sent out that show how much each property is per night, what the amenities they have.
We also have cars like I had mentioned before, we have vehicles that guests can rent, or that these travel, medical professionals can rent. We have grocery delivery service. So we have basically it's an all inclusive package. Somebody literally parks their car, or excuse me flies in to like, SFO gets an Uber, and they check into my place with the keypad and the cars in the garage, everything set up for them to go they don't have to bring their own vehicle or have it shipped or anything like that. So and right now to rent cars, you guys is super freakin’ expensive if you guys just go to like enterprise.com and or expedia.com. And you just type in compact car just to rent a car for 30 days right now. It's over $2,400 a month. It's insane. So imagine if you had like a, you know, 2010 Honda Civic that somebody can rent for, you know, 1600 bucks a month. Now your car payments, 200 bucks, and you're cash flowing all that other stuff on top of that. So there's just a lot of opportunities, you got to think about it in a different perspective.
Yeah, yeah. And that's also just a strong differentiator for yourself between other operators. So kudos to you. Well, let's jump into some of the questions that I got off of Instagram and from the previous YouTube video, and also as well as things that I came up with. So let's go on to this one. Let's go an Instagram question first. So, real quick, how do you identify a good tenant?
Yeah, identifying a good tenant. Well, I, I typically go after travel agencies, so the agencies are doing a lot of the vetting for you already. There's a thing on furnish runner called key check. And that key check app will actually basically do a background check on anybody coming into your property. So that's the first thing that you should do. And there's a bunch of other software's that check people those backgrounds where they're renting, if they've had good rental status, but that's typically what I use. And the other reason why I like to go to the corporate route by getting an actual corporate contract is because those companies are liable for the guests that are in there. So if there's a problem, I get to go to this big giant corporate company instead of somebody that's just in the house. And for the most part, tenants that are that come from travel agencies, or nurses themselves that are traveling, they're not problems at all. I've never run into any issues at all. So yeah, that's the least on my worry list. You know, when it comes to the tenants coming in?
Gotcha ! No, that's good to know him for this one. So you've reached out to the agencies directly? What if you only have one midsummer mental, like how, how are your maybe your students at first positioning themselves as operators, you know, half of my students don't even have their first place yet. They're just learning the ropes. They're learning on what to do, how to communicate with people.
And I think that's the most important part is actually starting to understand the business that you're getting into understanding that relationships are the new currency, they're the most important part of literally everything you do when you're connecting with these agencies. So whether you have zero properties, we only have one, as long as you're stating what you could do to help people you have a landing page. That's basically all you need. I think with one property, that's more than enough to get started, I don't think there really has to, you have to, you know, have this big network of individuals and people resonate more with individuals that are transparent, you know, I would call if I had one property, I'd call an agency and say, hey, you know, my name is Jesse, I, you know, own company called stat housing company. For those of you I just made that up, maybe just go ahead and snag that for yourself. Stat housing company, and what I do is I help travel medical professionals relocate new place safely, we have a property that's in a really good market that has very safe ratings, here's a list of three things that I think that you would benefit that your travelers would benefit from. And then boom, boom, boom, boom, just go down your list. And then you just ask questions, I think that's another thing that we tend to forget about is like, you have to ask how people operate in order to uncover, uncover the needs, because most people don't know or most of these travel agencies don't really know they need. They need somebody to work with in that level. And you just really uncover what it is that they have going on. And a lot of times, like on our first conversation, Josh, nurses are here, and they don't even they're already in my market. And don't even realize that you know, how hard it is to find a property. And they're just staying in hotels and stuff. So those opportunities are all around us. So you just have to, again, kind of seek them.
Yeah. I mean, it's picking up the phone is probably the scariest thing at first, but you do get used to it. And you can learn a lot just from asking what the other person who the agency who the HR professional, you can actually uncover their needs. And then once you solve their problems, like that sales one on one, right, so you know, my class, I play live calls that I've made to these agencies, in literally one of my calls, it's like six minutes long is 22 questions.
How freakin’ annoying, right? But at the end of the day, I ended up getting the recruiter I needed to get to I ended up getting a contract with that agency ended up finding their pain points. Because just like with any successful business, you find you solve problems, you're going to be able to build a business off of it, and you can't solve problems. Let's see, find out how they're operating. And that's really one of the most important parts and you got to like, actively be listening to, I think when we make phone calls. When I first started off, Josh, I'd call and be like, I'm thinking of the next question, I was gonna ask it rather than actually listening to what they were saying. I think a lot of times we forget, that is, you know, we're in our heads for those conversations. It's scary. It feels uncomfortable. We're not used to it, especially if you're an introvert, like I am by nature. So this stuff comes not easy to me. And to most people, it's not really that easy, but there's a methodical way to do it, for sure. And the last maybe kind of piggybacking on that one that I would give somebody who's listening to this, if you are new to sales, is make your list that Jesse was talking about, if you had 20 agencies, 20 hospitals that you want to call and call the one that you want the least first and the one that you want the most last so that by the end of you make 20 calls, you know what questions they ask, you know how to answer those questions, and you're a little bit more confident. And if you lose the first 10, then who cares? Because you didn't want them anyways.
Yeah, I would actually start that last call off by saying I'm calling you last, because you're the one that I really want to work with the most.
Oh, look at that. I like that.
Yeah ! I'd like to know the salesperson. Okay. Let's go into we just finished tax season, maybe I don't know where you are. And again, none of us we're not financial professionals or anything like that. But I know if you have been interested in long term rentals and short term rentals and have seen kind of the new cost segregations for short term rentals, if you are the operator that there were a lot of good resources where it could potentially offset your W two because they're active. What is midterm at least in terms of what you've heard from other like CPAs? Like where does midterm fit in that in that bucket?
It falls under the same guidelines as you if you had a law Long Term rent rental. Because that's how we can skirt around all these ordinances right, we're not short term renting 28 days or less is considered a short term rental 29 days or more is considered a mid term rental. So Metro rentals can be 29 days to six months, that's what a mid term rental is considered. So you fall under the same tax benefits that you would as a long term it so that's all those things, Josh are really important. So you can you're buying furniture for these properties, you can depreciate all that and all that 100% of your, that all the purchases that you make within that first year, if you wanted to, you can improve, you can depreciate it over the next five years, you really can pick and choose how you want to do that. So like for me, if it's a big purchase, I'll depreciate everything over the next year, like right away. Last year, I spent, I think 25,000 on that property, you guys just seen the outfit it and have somebody come in really helped me figure it out. So 25k on that, so I'm able to depreciate all that this year to offset my w two, because I had a W two job last year up until July. So I can offset that right from the very beginning. So a lot of the same situations as far as like buying furniture and things are the same is if you were to long term rent. Now, if you put this under an LLC, you can fall under a business, you can do everything that you would do with a typical business anyway. So if you purchase a property that you know, you're going to use as a mid term rental, you put it under an LLC, you have the same benefits that you would as a you know, as a as a business. So, you know, there's a lot of really awesome tax benefits, obviously, with real estate, it's one of the easiest and one of the best ways to you know, offset those that those earnings.
Okay, well, that hopefully the answer your guys’ question on the tax side again, none of us are financial professionals. So don't really ask us go out and ask your CPA. You name drop this a little bit earlier. So we have to see you did a podcast with the CEO of furnish finder. What was his name again? Brian Payne. Okay, so you did an interview with Brian Payne and that's on Jesse's channel, which you can find all of this stuff in the description linked down below. What were the major takeaway that you got from the interview?
You know, I'm gonna be honest, I, when I interviewed Brian, I, his mind is in a different place. Like he's all about wanting to help people grow and have, you know, he, I think he wants to be a platform to have people stay for, you know, 30 like he wants to be a midterm rental space. But I don't think he really understands. And I was trying to, like, push this on. And for those of you listen, you can kind of hear me talking about this.
In the investment world, furnish founders a really big deal. Like, there's probably a lot more people that go into furnish finder to list their properties that are these old school mentality, people that are feeling strong and realize like, Crap I can make instead of $300, or I can make now $1,000 A door. And I can do this by mid term renting, which is less hassle, less headache. I don't think he looked at it that way. And I was trying to really have him understand that in that sense that how big I mean, how many meetups we go to Josh, where people talk about midterm rentals, and furnish finder, a lot. It's, it's insane. So I don't even think his head is there yet. But I think he has got a totally different perspective. He's, you know, he's looking at things in a different light. And him and I have a very similar background, we both came from, you know, med sales. But obviously, he went and created this, this this big platform he didn't do alone, he talked about not being able to do things alone, you have to have a team. I think for a lot of people, especially listening now, you got to ask for help. You got to ask to learn how to do things you got to ask to, to, you know, figure a way out, you can just do everything on your own. And that's what he did, obviously, getting people with software engineers and things to create this. So yeah, man, he's doing some really cool things.
Yeah. I mean, that's, uh, it's interesting that you say that. And if you haven't listened to that interview, then make sure you go to Jesse's podcast, that big break show and listen to that. Yeah, it's really good. The maybe the follow up questions of this, as we just talk about different booking platforms is how many of your bookings are coming from a booking platform like Airbnb and furnish finder or direct?
Like, what does that ratio look like for you? If you had to buy?
Yeah, I would probably say, well, the midterm rentals, everything comes from furnish finder. We're like, we're going through and checking all the people that are coming in, if there's nurses that are advocating for a property, we're calling them to see what type of you know what type of place we're looking for. They found a space already. So if I had to give a breakdown, I would say probably 60% come from Airbnb. I don't know maybe 40 ,No, 30 Maybe 20 something percent come from furnish finder, and then the other remaining is just like VRBO or whatnot. And every market has their own different Oh, we have direct bookings they happen to so I pay for Google ads, Google Analytics, Google SEO.
listing So if somebody types in short term rentals, Modesto, you know listings will pop up for the space or hotels, Modesto. We pay per click. And those per clicks, you know, it might be 30 cents, it doesn't matter. But because at the end of the day, we're getting paid, and you're getting away from those Airbnb fees. And we can't be relying on Airbnb, Josh. We really can't I think that a lot of us are if Airbnb happens to shut you down for whatever reason, a party or something like that. All your business is gone. Yeah, it's done. So you have to really think about getting different avenues and getting bookings from different platforms, and not just being heavily reliant on Airbnb to do that job for you. Because it's just, it's not a safe, we need to have exit strategies, right, just like with anything. And, you know, it's really important to think about those things from the beginning.
I mean the same as you diversifying your portfolio you're just making sure that whatever attention is coming on to your business which is that one or 20 listings uh can get traffic from multiple spots.
You know, can i bring this up real quick so yeah so and one of the reasons why this is so important to think about exit strategies, so in my city that I live in Modesto and for those of you who follow me on the Instagram you probably see me talk about this the last couple days they're proposing a short-term rental ordinance in my market which it's a rural market. You know there's not a there's not a there's actually there's quite a bit of airbnb's now probably because I talk about how good it is here, but so there's a lot of short-term risks that just came into the market so if there's an ordinance that comes into play , if I was reliant on just short-term rentals I would be totally screwed right now but luckily i have midterm rentals ,that I can always divert to that are don't fall under that category um and the problem with the city is that they're actually putting a short-term rental, under a bed and breakfast they're saying it's the same thing so they want us to have somebody living on site.
You pay somebody that for you know that's taking care of the property i think they're wanting somebody to live there but the problem is there's no
um there's a gray area like josh you can have a place and want to rent you put your place on Airbnb, I can have a place and they can just say josh we like you better we're going to get your place up Jesse sorry ,uh you wear glasses and a nerd so we can't have you have you do that there's no like clear-cut specific things but for me now josh since I have midterm rentals I can pivot into that so that's you have to have an exit strategy yeah anybody listening now, please, please think about those first before you even get involved in the short-term rental space.
I think hopefully if you've been subscribed to my channel you know the struggles that we went through to launch in Yucca Valley ,the Joshua area so that was quite a permit battle but find out what the regulations are in your city and attack those first that should almost be one like the number one thing you do before you even pick your location although if you are doing midterm rentals and I
guess that's different yeah doesn't matter that's how you get around those issues and you have a way out so you're not just heavily reliant on the short-term space so um it does a little it's more work i'm not going to lie about that i mean it is 100 more work especially if you're going the contracting route it's not easy
but there's more upside and just as more people are getting involved with short-term rentals i mean how many people are getting involved that were never involved in short-term rentals now hundreds of thousands millions right there's gonna be more ordinances that are gonna be put in place if you live in a space that doesn't have an ordinance there will be one eventually at some point so you have to think about it even cities that have ordinances they can change those all it takes is one negative comment one negative a shooting to happen on Airbnb in the city to focus on that a party to happen somebody to take drugs and you know that's literally what happens in how markets shift and change so you have to be ready for the unexpected at any moment
I like it ,well let's do a quick maybe lightning round for some last few Instagram questions that we got here is let's pull this one up there you go so do you include shampoo soap laundry detergent all kind of the basic necessities in your listings for midterm, only for like the first couple weeks like i was mentioning before because most people are going to bring their own stuff anyway and actually even after three months with people moving out I've seen the same shampoo there the same stuff that nobody even touched because they brought their own stuff so
I definitely leave a couple weeks worth of shampoo you know conditioner, we'll have like i don't know Costco roll of toilet paper in there um but that's it you don't have to you don't have to you know supply, all that stuff month after month just like you would as a short-term rental so just a small amount it's all you need most guests are going to buy their own. I like it, so cost savings, well locations are bad like what would you just avoid . So if you're going to if you're looking at hosting travel medical professionals you're going to want to be in a safe neighborhood, but that's what I would recommend doing so I would stay away from anywhere that has you know high transient.
You know population markets .I know that we can't get away from that even here where I'm where, i'm at or in the city it's just part of how it is but you got to try to buy a place or rent a place or arbitrage a place in a space where somebody feels okay comfortable at night time, people especially in the morning too, a lot of these nurses work 7 AM or seven pm to 7 AM so they're leaving at night coming back really early in the morning. So those are things i think about safety is an important thing and then a unique space that's the most important I feel right now and I've talked about this and I've preached it forever don't buy a cookie cutter house buy something that's a little bit different that has a little appeal to it a lot of times these investors will overlook those types of things those are the kind of properties that I'm seeking out so somebody can provide a little bit more of an experience just like you saw in the listing earlier that's like an older retro kind of home but it has that feeling of you know presence it's kind of an experience when you get in there so they're all a little bit different they don't feel just like regular cookie cutter houses so I would highly suggest you know if you get into involved in this that you think about those things I love it.
The last question I have for you is you've maybe have teased that you have a course right and now that you've helped a few people through the process what do you think is the number one roadblock uh for people getting started they don't know where to start they don't know what to do they you guys heard me talk about this you call a hospital and you just ask them if they have travel medical professionals well then then what if there's a no then what happens and then what do I do after that, so I think that's kind of the roadblock is that you know people will not necessarily know what to do when they hit that block but there's multiple different avenues to go down to get to the right person to get to a recruiter to get to an agency and they're all over the place so and a lot of this goes back to sales so in my class i talk a lot about how to go maneuvering objections and rejections because it's going to happen you're going to have people that are going to tell you quit calling me leave me alone.
There's different ways around different specific things in in this atmosphere and you got to be consistent with it i think that's the most important thing is that if you're not consistent with anything you do just like if you're on a diet or you know you're exercising if you're not consistent with that every week on a week you're not going to have results and that's exactly what it's the same it's the same concept when it comes to you know connecting with agencies and things like that so I would say that's the biggest roadblock that people have is that there's consistency that needs to be put in place and then how to maneuver through objections and rejections.
Well thank you so much Jesse, I mean, I guess, so what's next for you what are you working on how I can maybe someone help you yeah. I'm looking for properties right now so as you guys all know the properties are really high priced all over the place even in spaces where you would never think that prices would go up they're going up don't let that deter you from purchasing property, so I'm still looking for deals either on market or off market.
My goal this year is to buy five properties specifically for midterm rentals, so I'm working on actually picking up my second one for the year so i should hopefully have that completed probably the next month we just put an offer on a place so yeah that's kind of what I'm doing now ,and I'm gonna start another master class here coming up pretty soon in May.
I'm recording that to be ,you know so people could take it online and not just have to wait for a specific master class day because I have so many people that message and they're just like I want to jump in but I only do it live, you know once a quarter, so I'm gonna have this available for people to be able to go online and do ,you know whenever they please at their own time frame because it's a lot of information a short amount of time. Yeah for sure and so for those who are listening either live thank you or on the post play , his contact Instagram is all linked down below ,you can check out his youtube channel and he also has a podcast with rafa loza the big break show and I like the first i don't know it was the first like five episodes you guys literally just went and uncovered the script either for arbitrage or for hosting midterm rentals so you can get almost I'd say the teaser of the class, all in those five podcast episodes totally yeah or even on the youtube videos like there's a ton of information there if you're looking at getting started just watch those first five youtube videos and you'll get a ton of information on where to go what to start doing how to evaluate a market there's a lot of information in that and it's all for free.
Well jesse , thank you so much and for those watching thank you as well make sure if you do like this content like it I guess and also subscribe and subscribe to Jesse's channel too because this he just dropped so much knowledge this is part two and if you want to make what is that basically fifty thousand dollars in six months on one listing on a go like god crazy right that doesn't even seem real it doesn't even seem real .
I know I mean that's like dude it's real ,it is real and anybody can do it and that's the thing is that you just have to put intention behind what you're doing, but it can happen okay well I am excited as we're launching our first midterm in Columbus ,you've been super helpful to me and hopefully the viewers find value too if you did make sure to comment down below uh how much you've enjoyed this episode if you have other questions we can bring them back eventually for round three.
Maybe we'll do a property tour next time.
Oh heck yeah !
Well Jesse thank you so much , I appreciate it.
Thanks dude and cheers !
Cheers ! see you all you guys on the next episode. If you enjoy the episode please like, comment, subscribe all that good stuff if you made it to the end, if you made it to the end comment down below midterm rentals again because it was really fun to see who made the end of part one which is also linked down below but you guys are super warriors I appreciate you guys so midterms down below and i will love you guys all forever !
Thank you again so much and I'll catch you guys in the next one !
