The Legacy Wealth Code Podcast

Building Wealth Through Short Term Rentals - The Keys to Thriving in a Competitive Space

Michael Notbohm & Andrew Hoek Episode 7

A true real estate legend, Kevin Byrne is our guest on this episode.  Kevin has flipped over 1000 short sales, started a brokerage that now has over 180 agents, and has built an investment portfolio of 100+ doors, many of which are short term rentals.  Air Bnb has seen exponential growth in recent years and Kevin has put the systems in place to become a super host and deliver exceptional service to his guests.  As a result, the return on investment for these properties has been a huge driver of wealth for Kevin.  Kevin shares some insights on how to make sure your property performs in a space that is getting more competitive than ever.

Onward!

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THE LEGACY WEALTH CODE PODCAST SHOW NOTES
Episode #7: Building Wealth Through Short Term Rentals - The Keys to Thriving in a Competitive Space 
Host: Michael Notbohm & Andrew Hoek
Guest: Kevin Byrne 

Episode Summary
Welcome to this episode of the Legacy Wealth Code Podcast, a platform aimed at helping you build long-term wealth and a lasting legacy through real estate investing, tax strategies, and motivational stories from successful people. Meet our hosts, Michael Notbohm & Andrew Hoek.
Today's guest is Kevin Byrne, the owner of Impact Realty in Tampa, which he started 3 years ago and has now grown to a business with 185 agents. Kevin Started building wealth with over 1000 short sales and then pivoted to long-term rentals, and now he manages over 100 rentals.
In this episode, Kevin discusses short-term rentals, highlighting the benefits, misconceptions, risks as well as major factors to consider when investing in this aspect of real estate.   

Episode Topics
[00:30] Introducing our guest, Kevin Byrne. 
[01:18] Growing wealth by adapting to short sales. 
[05:18] The misguided notion that short rentals are an automatic path to wealth. 
[06:48] Are short-term rentals saturated?
[10:11] Analyzing a deal; consider the worst-case scenario and long-term prospects.
[12:12] How Kevin manages his properties. 
[15:41] Pricing Strategies; tools to forecast expected revenue from properties. 
[24:10] Navigating through the hospitality needed in short sales. 
[30:20] Expected trends in short-term rentals; the entry of Wall Street. 
[36:18] Short-Term Rentals vs Hotels
[37:55] The regulation aspect of short-term rentals.


Notable Quotes
"Although it seems like real estate, it's really hospitality, and I think people are mixing the two up" - [Kevin Byrne]
"I believe that the short-term rentals market right now is a very very risky market to be in, however, there are still great returns for exceptional operators" - [Kevin Byrne]
"When you're analyzing the short-term rental acquisition, you absolutely have to run long-term analysis on it" - [Kevin Byrne]
"A good pricing software is going to adjust for events" - [Kevin Byrne]
"A lot of people, I think, look at the reviews probably as the number one metric of which property they're going to book" - [Michael Notbohm]
"You have to be so good at the value that you're providing people that when that one bad review comes through, you have so many positive reviews to drown it out" - [Kevin Byrne]
"The insurance that you traditionally carry on a residential property is not going to cover short-term rentals" - [Kevin Byrne]
"If you keep a diversified portfolio of about 75% long-term rentals, 25% short-term rentals, your short-term rental is going to mirror your long-term income and you can scale a lot quicker with a lot less risk" - [Kevin Byrne]