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[00:00:00] Sarah: Hello, listeners, welcome back from another great week. My name is Sarah Karakaian.

[00:00:04] Annette: I’m Annette Grant. And together we are–

[00:00:05] Both Annette & Sarah: Thanks for Visiting. 

[00:00:06] Sarah: And this is the–

[00:00:07] Both Annette & Sarah: Hosting Hotline.

[00:00:08] Questions: Hello, my name is Zach, and my Instagram handle is @zantventures, Z-A-N-T-V-E-N-T-U-R-E-S. Zant Ventures is the start of my Airbnb business, and I just want to know if you guys have any advice on what I should do to get started. I just bought this house, and my original plan was to Airbnb the casita in the backyard, but there’s no bathroom. 

[00:00:32] I was told there was plumbing there, but there is not plumbing there. It’s going to cost over $40,000 to have it put in, which I don’t have right now. I was just wondering if you guys had any ideas on how to remedy the no bathroom situation or any ideas on how to start up an Airbnb business with no money somewhere else.

[00:00:50] Sarah: I like Zach’s entrepreneurial spirit.

[00:00:54] Annette: Zach, you got the main house, right? Can you stay in the casita and go to the bathroom somewhere else? I mean, I’m just getting creative here. That’s one thing. I’m just like, you have the property. Is there an opportunity for you to start renting the main property, and maybe it’s just on weekends? Maybe are there some specific times, wherever you’re located that it’s higher season, and you’d link arms with someone else?

[00:01:15] Because it sounds like you’re excited about starting the business, and sometimes when we get started, we got to get gritty. So it sounds like you have the property, you’ve purchased it, so that’s number one, just the first thought. And two, are there rooms in the house that you could rent out if you want to get really scrappy and start this business. You could have success there, but there are some other ideas we have for you also.

[00:01:37] Sarah: The casita could be a room, and then you could have your guests come into the main property where you live and have them use the restroom there. There’s an idea. And then I like your scrappy idea. Maybe, Zach, you don’t even live there. Maybe you go get a roommate, or you live with a family member just for a year or two, someone who’s willing to support you if you have that luxury of support from family or friends, and save that money from all of your earnings from your short-term rentals to add the bathroom because that’s adding value to property.

[00:02:01] And I don’t know where this is, obviously. And there are so many questions that I don’t have the answers to answering your question, but I would imagine that adding plumbing would add a lot of value to it. In that regard, maybe when you asked this question, the episode that we just had with Bill Allen hadn’t come out yet, and that is Episode 281, on how to offer someone an opportunity to loan you the money for the plumbing in exchange for maybe it’s equity, ownership, maybe as a loan with a certain return on it. 

[00:02:35] And Zach, you can do the math. So once someone gives you the money to do the project and you manage the project, make sure that you are on budget with it, understand the numbers of what you can get from the casita with the bathroom, and when can you pay this person back? And how long does it take you to do that? And what does that set you up for success-wise in terms of the return on your investment there? 

[00:02:59] Oh, HELOC, a line of credit on the property. I’m not sure if there’s a value to add to the main property. Could you get a line of credit on it? Again, you want to make sure you’re not over leveraging yourself. I don’t know what your situation is, but is there a value in that main property as well?

[00:03:12] Annette: And again, the 40k, of course, we want you to make sure that you’re making the right investment, but getting a couple of different quotes on exactly what that is, getting another perspective on– maybe the next person can find the plumbing there. Go back. I would go back to whoever sold you the house that told you it was ready for plumbing in there.

[00:03:32] I want to know. If that was in the contract, you might have a leg to stand on there, depending on how that all went down. But I really think, sometimes these are good situations to be in because you really will think outside of the box and do– go on right now. I would say, go and see your main house, what the nightly rate could command in your area and how long it would take you to at least get partially there to get the bathroom installed. 

[00:04:02] Sarah: If someone came to me with numbers and said, Sarah, I need 40k, and if you give me the 40k, not only can I pay you 10%, 12% on that money over X period of time, but also once that’s done, this property is going to make X amount. Either you’ll own it with me, or I’ll pay you an extra whatever for this many years, and the location is amazing. We are adding value to something that can appreciate with time, and the regulations are somewhat favorable for short-term renting, or midterm renting, or long-term.

[00:04:30] Zach, there are people out there with money and don’t have the time. And so you are offering them an opportunity for you to manage the short-term rental. You tell them, I’m listening to Thanks for Visiting. I’m educating myself, and I want to do this thing. And I’m hungry. I’ve got time. In exchange for you putting up the money, here’s what I can offer you, be a part of the short-term rental journey with me. So Zach, let us know how this goes. I love this question.

[00:04:57] Annette: Mm-hmm. Keep us in the loop.

[00:04:59] Sarah: Get gritty. And if you have a suggestion for Zach, he shared with you how to get ahold of him there too. So, um, Zach, maybe someone in your area who’s listening can help you. But with that, I am Sarah Karakaian.

[00:05:09] Annette: I’m Annette Grant. And together we are–

[00:05:11] Both Annette & Sarah: Thanks for Visiting.

[00:05:11] Sarah: We’ll talk to you next time.