25 side hustles that make money

26 Side Hustles That Make Money

What’s a Side Hustle?A side hustle is something you do to earn money outside a traditional job.- Nick Loper





25 side hustlesIf you want to start building passive income the first the you’re going need is a regular income. 

I like to think of  myself as a self-sufficient hustler. Sometimes jobs are not a good fit for everyone.

Sometimes jobs don’t pay enough, and a second job would be too stressful, that’s where having a hustlers mentality comes in.

Having a side hustle is helpful to save up for larger investments that will generate passive income

Here are 25 ideas to help get some capital into your bank account.

 

 

  1. Resell discarded items – If you have a pickup truck, and you see an old sofa, or nice coffee table, out on the curb for the trash, take it. These items can be cleaned up and listed for sale on sites like craigslist or offerup, You can make money by steam cleaning old sofas, or polishing old wood dressers and selling them. A lot of times people throw stuff out thats in good condition just because they need the space. Avoid anything heavily stained and always clean these items thoroughly to restore them back to a decent condition.
  2.  Stalking Craigslist Free Section – This is one of those side hustle that is no secret to many looking to earn some money so you will need to be fast. People often list free items on Craigslist, many of which may have value, but the owner doesn’t want to go through the hassle of meeting potential buyers, or haggling so they give it away free. I’ve seen everything from furniture to vehicles in this section. The goal here is to snag items that can you can sell for profit. Because you don’t have to spend any money to get these items, everything you sell is 100% profit.
  3.  CashcrateCashcrate is a paid survey site online. Survey sites like Cashcrate generally offer 2 ways to get paid. Member sign up and can either complete surveys for designated dollar amounts, or refer others using their referral link. I signed up for cash crate a LONGGGGGG time ago. Like 2007ish, when I was trying to find out different ways to make money online. I started off doing the surveys, and I went through a phase where I was doing youtube videos and putting my referral link all over the place. I didn’t know much about internet marketing back then, but apparently, a few people are still watching my youtube videos because I have many active referrals. The good thing about cashcrate is that not only do you receive a percentage of your referrals earnings, but you also get a smaller percentage of your referrals, referrals. I consistently get checks from cashcrate to this day. It’s always a financial bonus to open the mailbox to a check from something you weren’t expecting. I would actually classify this is passive income because I literally had done nothing to maintain this for well over 8 years! If you want to sign up with cash crate click here
  4.  Bird dog houses – This is one of my favorites. Have you ever driven by a busy intersection and noticed a bandit sign with the words “We UGLY Buy Houses…”? Well, these people are probably  Bird dogging the act of finding real estate for a good price, placing it under contract, and then selling the contract for a profit. This is done by using an assignment contract. Using bandit signs is a great way to find people who want to sell their houses. The real profit to be made is when you come across homes that are in dire need of repairs, or updates because this will give you leverage to hassle. After negotiating a price you place the house under the assignment contract, this is an assignable contract to buy the house. This means two things, that you have an agreement to buy the home at a specific amount, and that you can sell this contract to someone else interested in buying that house, at the same price. This is why its important to make sure the price you negotiated will be attractive to investors after you’ve added your contract fee. In my area, I find bird doggers are usually earning around 3-5 thousand dollars per assignment.
  5.  Painting – If you’ve got attention to detail post an ad on craigslist, throw some special prices on it, buy some good quality brushes and go to work. I don’t recommend trying this if you are not particularly a neat person. Offer friends and relatives a free paint job, to  see if this is something you can do well. Always remember to tape off all trim, remove wall plates, and keep the floor covered with a good quality tarp.
  6.  Drive For Uber or UberEATS – Uber driving is a great way to make some extra money. Unless you’ve been living under a rock, you know uber is like a taxi but a heck of a lot more reliable and cheaper. I use uber all the time when I travel or go to the bar. There’s a certain freedom about not having to drive places that I love. If you have not taken a ride with uber please download it and use this promo code UBER4FreePromo, this will give you a free ride for up to $10.  Uber  an especially good way to make consistent extra money if you have an eco-friendly car. They pay drivers to download the uber partner app, and take calls from people who need rides. Its like that old arcade game Crazy Taxi but in real life.  People always ask me what its like driving for uber. It gave me a different look at my city, I got to meet a lot of really cool people, and explore areas of the city that I didn’t even know existed. Because of it, I’ve gotten paid to discover all new restaurants and other hidden gems in my city. For more info on Uber check out the uber experiment. An Expansion  of the Ubers company is UberEATS, you can also make money delivering food to customers of local restaurants. To learn more about UberEATS click here!   If you would like an Uber promo code for a free ride click here!
  7. Rent your house on AirbnbAirbnb is a website that allows you to either rent rooms in your home or your entire home to guest looking to travel in your area. This can be extremely profitable. When i first started my airbnb investment experience, I opened my rental properties to many guests in my area. This is an extremely lucrative way to make money. Click here to see how I made $11,604 in 5 months renting my house on Airbnb or  Click here to rent your home on airbnb.
  8.  Tutoring services – Do you have a talent, something that others might want to learn that you could teach, if so tutoring might be a viable source of income. Do research to see what others in your niche are charging and be competitive. Depending on what type of tutoring you’re doing. Try to go to places where people in need of your service would gather and post ads on the bulletin board. For example if your good at fitness. Advertise at local gyms. If you’re a trigonometry wiz, advertise on community college, and university bulletin boards.
  9. Start a cleaning service – If you are one of those people who finds it therapeutic to clean, start a cleaning service. Cleaning supplies are cheap, advertise on craigslist, as well as local bulletins in your community. Try to get cooperate contracts as they will make your business more valuable . Always clean very thoroughly you will be able to get more clientele through word of mouth as well if you are good at what you do.
  10.  Dog walker/pet sitter – Are you a pet lover? You can get paid as a pet sitter or dog walker. You should really love animals if you are considering working with them. You can get clientele by advertising in the online classifieds or sign up for services such as rover.com. Rover.com is a website that connects dog sitters and walkers, with people who need the services.
  11.  Mobile detailing – Because the supplies needed are very cheap, and you are mobile, you will have very low overhead with this side hustle. Advertise your services on local classifieds and bulletin boards at local businesses. Offer competitive on pricing and offer discounts for multiple vehicles. Pass out flyers in crowded parking lots at the mall. Mobile detailers generally charge $35 for a basic cleaning, and there is an upcharge for deeper cleanings.
  12.  Drop shipping – Drop shipping is when you sell/advertise  a product, and once you get a sale, you purchase that item from a 3rd party vendor and have it shipped directly to your customer. The benefit of drop shipping is there is usually little investment because you never have to purchase physical stock. In fact, the only thing you will need to make money is a website and a marketing plan. There are many companies that drop ship online, such as Doba. The best practice is to find a niche that is not over saturated. Saturated niches will be nearly impossible to get ranked for as, pioneers in that particular niche, will make it difficult for you to make any money.
  13.  Be somebody’s friend. That’s right you can literally get paid to be a friend. If your personable and you think you could lease out your services as a friend, try signing up at rentafriend.com. You can literally get paid to be a good friend.
  14.  Give advice – Do you know a lot about a lot of things? Become an “expert” on  Clarity.fm. With Clarity, you make money by giving advice to people with questions in your field of expertise. “Experts” generally make around $50 per question.
  15.  Blogging – I only recommend blogging if you love what you talk about, this is a long-term way to make money. As you build your audience, you can eventually begin to make money through a bunch of different avenues. If you use products that you truly believe in you can make money with Amazons Affiliate program. You can also make money with Google Adsense. Adsense pays you to place ads on your website or blog, and as they get impressions or clicks, Adsense registers this and issues you a payment. You can also sale ad space on your site directly. You set the price, and have more control over the details. Bloggers with large followings like Carol Tice, can earn upwards of $5000 a month from blogging. To learn how to start your own blog click here.
  16.  Collect scrap metal – If you have a pickup truck you can drive around and collect the scrap metal and scrap it. People are always listing free scraps for people to come get for free. Develop a name for yourself in the scrapping niche, you can build relationships with people that come across scrap metal frequently, like rehabbers and flippers.
  17.  Get a roommate! Ok, so disclaimer: This isn’t so much a way to make money, well I guess it could be considered depending on how you look at this. I have a friend named Amy that lives in New York, she’s financing a nice luxury apartment. Her monthly mortgage payment is $2300 and she has 4 bedrooms. She rents the 3 smaller but decent sized bedrooms out to her friends for $900 a month each. Amy grosses $2700 a month. Every month her complete mortgage payment is covered and she has $400 left over to pay bills. Of course having a room mate isn’t for everyone, but if you can bare it this is a good way to cancel out the largest part of your living expense while paying off your mortgage.
  18.  Craigslist labor section – Craigslist is a great place for find people in need of labor services. On craigslist in the section under gigs, you can find people looking for temporary help. If you are handy there will be a lot of options for you here. If you are not handy, there are also gigs where they may just need something simple, such as needing a lawn cut.
  19.  Junk removal – This is another thing that you will be able to find gigs on craigslist. Many house flippers, and , those who go through remodels, are left with literally tons of debris. If you have access to a pickup truck and preferably a trailer, you can get paid to haul this trash off to the city dump. Contact your local dump and find out what dumping fees are. Keep this number in mind when bidding jobs. always make sure that you charge enough to cover dumping fees, your gas mileage, and most importantly your time.
  20.  Bitcoin Mining – You know what bitcoin is right?…..kinda…..a teeny bit? Well, bitcoin is a cryptocurrency that has gained popularity recently and starting to be accepted as a form a currency at an increasing pace. At the time of this post 1 bitcoin is worth just a little over $500 USD. So how do you get bitcoins? Well, you can mine them  by becoming a node,  back in the day, you could mine bitcoins with nothing but your computer and an internet connection. As time progresses bitcoins become progressively harder to mine, eventually stand alone computer did not have enough processing powers to satisfy its increasing demands. The need for more power led to the birth of dedicated bitcoin miners. Bitcoin miners use ASIC technology to help  mine bitcoins, but use a lot of energy. Some investors build bitcoin mining farms, to generate large amounts of bitcoins every day. The major drawback to bitcoin mining is that it grows increasingly harder every year to generate bitcoins, so you will always need to continuously keep updating your mining equipment. In the early days of bitcoin mining, you only needed a desktop computer, and an internet connection to mine bitcoins, now dedicated equipment such as the Antminer s9 is required to keep up with the ever-evolving algorithms.
  21.  Cut grass – This is usually seasonal depending on where you live, but people will always need their grass cut. You can get a used lawn mower off craigslist for under $100 to start your business. Start off in your neighborhood, ask neighbors with noticeably long grass if they need cuts. Offer to schedule them once a month. Print flyers and pass them out to near by neighbors. Be professional and be on time, and you will make money.
  22.  Buy Return Merchandise Pallets – When companies like Walmart, Target, K-mart, and many other stores accept returns, many times the items have slight blemishes or warped packaging, these items can no longer be sold on the shelf. In turn, the big box store needs to liquidate these items to recoup as much loss as possible. These items are sold to liquidation companies in insane quantities. Companies  like Viatrading redistribute the store returns into large boxes on pallets and package for resell for one wholesale price. I used to buy these pallets when I lived in Nashville. They usually averaged $300 and came in a box that was almost as tall as me. The only thing about purchasing these returns, is the liquidation centers don’t allow you to see what’s inside the pallet, they don’t want buyers cherry picking pallets.  Once we purchased a pallet, we would empty the box, go through everything, and separate the items into price ranges. The electronics were sold on eBay, and craigslist. and the low priced items would be sold by having garage sales. We would at least double our investment on each pallet http://www.viatrading.com
  23. Storage Auction – When storage unit owners, stop paying, the storage companies need to get their space back. They do this by auctioning off the contents of the storage unit. I’ve been to a few of these and they are competitive. The key to making money here is being able to tell what things are worth really fast. Like the pallet returns, you are generally not allowed to look inside these units, you must make your decisions based on what you can see standing about 3 feet away. Sometimes you get lucky and find valuable items that were not visible. These items can be sold on craigslist, the best way to make money with this is by making sure you don’t overbid on lots.
  24. Become a virtual assistant – If you are good at administrative work, can type, and work well with spreadsheets you may want to consider freelancing as a virtual assistant. Virtual assistants perform clerical work for clients, mainly data entry related work. You can find clients by listing your services on websites like upwork.com
  25.  Amazon Flex – Ever wonder how amazon gets packages out with lightning speed? Amazon Flex workers are the backbone of this delivery system. You apply through the website, submit a background check, then once hired, you can login from your smart phone and start delivering products from the Amazon fulfillment center in your area to its customers. Flex workers average $18-$25 an hour and set their own schedule.
  26. Become a Pornstar from home – If you aren’t shy and would like to make some decent money from home. You can  make some dcent money performing as a single our duo pornstar on a cam modeling site. . While many may turn their nose up at this  unorthodox method, cam models can earn an extra $100 – $10K a month from home . These sites work off a token system, viewers come into your chat room and tip tokens, that can be later converted to cash.  Because these websites are so popular there is always a large flow of traffic and plenty of money to be made.. If you are worried about you identity you can always wear mask to cover up your face and lets your inner porno star fee. You can sign up to be a cam model as long as you are over the age of 18. To see what its like to be a porno star online you can sign up here.






the landlord commandments

The 15 Landlord Commandments

For people like me, that accidentally started building passive income. Learning the landlord game has definitely been an interesting journey. As with any career path, when your in it, you get to see a whole different side of things. I believe one of the keys to success is the ability to adapt, so as Ive continued to grow my rental portfolio there are some tips that I have learned that can help to ensure your success with rental properties, and the keep them profitable and passive as possile

  1. Thous shalt Always Screen Tenants. The first line of defense for any landlord against major headaches, and utter destruction. Screen your tenant. Take a look at a persons track record with an online background check. Being able to find a good tenant is the foundation of a strong rental business.
  2. Thou Shalt NOT Rent To People You  Don’t Know. Your friends, your cousins, your moms friends, your brother, ex girlfriends little brother who’s “cleaning up his life now”, these are the people you want to avoid as tenants. When things go left, they will ruin your investment plan.
  3. Thou Shalt Always Do A Video Walkthrough Before Lease. Self explainatory right, which damages or stains were done before then tenant moved in, become merely hersay, when both parties not video evidence is available. I always do a video walk through with the tenant present. This way when they move out, they know if theres any holes in the wall, we both they weren’t there before hand.
  4. Thou Shalt Set A Tone For The Relationship. Always be prompt, professional, and reliable with your tenants. Set a standard for the way you run your rental business. Have policies and procedures in place, and follow them. Let tenants know up front what is expected.
  5. Thou Shalt NOT Discuss Personal Matters With Tenant. This is a big part of professionalism. Some tenants can naturally be friendly, and inviting. Maintain a professional relationship, when tenants begin to think of you as a friend, it can lead to late rent payments, and request to waive late fees, and a plethora of other things, that can undermine the foundation of your rental income
  6. Thou Shalt Be Clear Whats Expected. On time rent payments, how much are late fees, these are things you  need to express . If cutting grass, and raking leaves, or snow removal are the tenants responsibility, make sure this is clear in the beginning. I make sure a tenant knows whats available by including a tenant responsibility sheet.
  7. Thou Shalt Collect Electric Payments. Come on its 2016, I really hope your not driving to pick up a check from a tenants. Always collect rent via online payment service such as Paypal, or get a deposit only bank card from your bank, this lets tenants deposit your rent payment at any local bank of your choosing. Then all you need to do is check your balance from your app. Work smarter not harder!
  8. Thou Shalt Answer Your Tenants Calls. Believe it or not I know a few landlords who actually have a callous attitude towards this. A landlord should be accessible, or atleast have a 24 hour property management company in place. The tenant may be calling you to tell you a pipe burst in the wall, you need to be able to address problems fast, the faster you handle it the faster its in the past.
  9. Thou Shalt Make Repairs Fast. If the fridge goes out or the disposal break go fix it. Remember your tenants are paying you for a fully function living space, when things break fix them fast to keep the space functional. Don’t give your tenants a reason to get upset with you.
  10. Thou Shalt Fix Things Right The First Time. This is one I learned the hard way, in the beginning, I tried to nickel and dime things, cheap $10 fixes, I learned fast that this just creates an everlasting headache. If I’m fixing the same problem for $10 10 times, I probably could have just had it done right in the first place. Im all about keeping it a passive as possible. If you are not handy, get yourself a GOOD handy man that you can call for repairs.
  11. Thou Shalt Set Aside Money For Repairs. When its time to replace the water heater, or a leak from the upstairs shower caused the ceiling to sag. This emergency fund will keep you from hurting your profitability. If you fail to plan, you plan to fail, always set aside ATLEAST $75 per month per rental. I find by saving a designated amount, and setting aside, the emotion is removed from the money. When a tenant calls with an issue, instead of thinking, “more money out the window” you think “thats fine we have money set aside for that”
  12. Thou Shalt Have A Firm Late Fee Policy, and do not defer. Make your tenant sign a copy of your late fee policy before moving in. Let them know what date rent is expected, and how much per day it will cost after that. If you let this slide tenants do not have an incentive to be on time. I need my tenants to make me a priority, the business can only run efficiently with promptness. If something breaks, I fix it fast, I expect my money with the same speed. Now if a tenant tells me they switched jobs and now get paid on a different day, I would be willing to work something out, but never be willing to accept consistent late payments.
  13. Thou Shalt Always Have Eviction Paper Work Ready To Go. Have all late notice and eviction papers ready to go. I keep a folder with these by my desk. If a tenant doest pay, the late notice is sent, which usually rectifies the issue, but if not, Im ready to follow up with the rest of the eviction paper work
  14. Thou Shalt Raise Rents Yearly. This is something I wasn’t doing. You will need to check in you area for local laws regarding raising rent but its a good idea to raise rents yearly. This is one of the reasons I enjoy investing being a landlord, they keep up with inflation. Always check what other rentals are going for in the area. As a general rule I raise my rents by $50 per lease renewal. This is about half of whats allowed in my area!
  15. Thou Shalt Recognize A Good Tenant. If you have a good tenant, know what you have. Be a good landlord, and you will keep good tenants around for many years. These people are the heart of the business, show them respect, and respect their privacy. If you have a good long term tenant that pays well and treats the property good, you will always stay profitable
how to find a good tenant

Investing is real estate in the form of rental properties can be extremely lucrative, and an excellent asset that generates income. When you talk to people about rental properties the response normally falls into one of two groups. They either love it, and are swimming around in large pools filled with coins like Scrooge McDuck, whenever they have spare time, or they hate it and have tales terrible drawn out evictions, and thousands of dollars in damages. For some reason, this is the life associated with being a landlord, which is true to an extent, but can usually be prevented if you can find a good tenant. Here are a few tips to put the odds of building wealth with real estate in your favor. If you’ve ever had to find a tenant for the first time, you might ask the following questions:

  • What’s the best way to find a good tenant?
  • How do I screen a tenant?
  • What are the characteristics of a good tenant?

When you are a landlord, you need to rent to good people.  Screening tenants for your rental property will be the key to your success. – No Nonsense Landlord

The Number 1 rule to find a good tenant

Do NOT rent to any family, friend, or anyone you have any type of relationship. This is should go without saying, and is ranked very high on the 15 Landlord commandments, if you want to find a good tenant, and goes without saying but you wouldn’t believe how many people do this. No matter how nice this person is it wont generally work well. Your tenant landlord relationship needs to be professional. This means do not make friends with your tenants. One of my tenants used to always invite me out for drinks, but I always made sure to politely and respectfully decline.

Tenant Screening.

Screen your tenants. No really really screen your tenants. Seems like common sense for anyone hoping to find a good tenant, but remember those angry investors, this is the step that was either skipped or botched, that cause them to feel this way.  The first step to find a good tenant is the pre screen. This is done when you first advertise your property. Make sure you clean before taking pictures, because clean rentals help to attract clean tenants. Post your ad, with a detailed description of the property.

Next, you will want to add the things that will be required, I always choose the following, no felony convictions within the last 5 years, no sexual crimes arrest, must have verifiable rental history of at least 3 years, and must earn 3 times the rent, and no evictions ever. Those questions for potential tenants, are my first defense to help weed out the rift raft. I find that it filters out the majority of dead beat tenants. Last I include my application fee, this is generally $50, and is used to cover the background check, this is also put in the ad, for two reasons, so they know that I will be verifying the above questions, and because no one wants to waste $50 if they know they won’t pass. As I get potential responses, I call them back give them the address, and tell them do a drive by to see if they like the area. If they are interested I meet with them, and show them the inside. If the prospective tenant wishes to proceed. I have them fill out my application, and collect the application fee.

Now its time for the background check. Back in the day, this was tricky, but these days there are a number of tenant screening services such as Next you will want to add the things that will be required, I always choose the following, no felony convictions within the last 5 years, no sexual crimes arrest, must have verifiable rental history of atleast 3 years, and must earn 3 times the rent, and no evictions ever. Those questions for potential tenants, are my first defense to help weed out the rift raft. I find that it filters out the majority of dead beat tenants.

Last I include my application fee, this is generally $50, and is used to cover the background check, this is also put in the ad, for two reasons, so they know that I will be verifying the above questions, and because no one wants to waste $50 if they know they won’t pass. As I get potential responses, I call them back, give them the address, and tell them to do a drive by to see if they like the area. If they are interested I meet with them to show them the inside. If the prospective tenant wishes to proceed. I have them fill out my application, and collect the application fee. Now it’s time for the background check. Back in the day, this was tricky, but these days there are a number of tenant screening services such as

As I get potential responses, I call them back give them the address, and tell them do a drive by to see if they like the area. If they are interested I meet with them, and show them the inside. If the prospective tenant wishes to proceed. I have them fill out my application, and collect the application fee. Now it’s time for the background check. Back in the day, this was tricky, but these days there are a number of tenant screening services such as Next you will want to add the things that will be required, I always choose the following, no felony convictions within the last 5 years, no sexual crimes arrest, must have verifiable rental history of at least 3 years, and must earn 3 times the rent, and no evictions ever. Those questions for potential tenants, are my first defense to help weed out the rift raft. I find that it filters out the majority of dead beat tenants. Last I include my application fee, this is generally $50, and is used to cover the background check, this is also put in the ad, for two reasons, so they know that I will be verifying the above questions, and because no one wants to waste $50 if they know they won’t pass. As I get potential responses, I call them back, give them the address, and tell them to do a drive by to see if they like the area. If they are interested I meet with them to show them the inside. If the prospective tenant wishes to proceed. I have them fill out my application, and collect the application fee. Now it’s time for the background check. Back in the day, this was tricky, but these days there are a number of tenant screening services such as rentprep, that can do a full background and credit check for a reasonable price. These checks are quite comprehensive. Within 24 hours, any lies are exposed, as I have access to their former addresses, criminal history, eviction history, bankruptcy filings, credit score, and employment information. I then cross reference this with the application for discrepencies. My personal preferences are:

  • Credit Score must be atleast 600. I feel this score means you are fairly responsible, I may sometimes go as low as 570 if everything else is in order.
  • Criminal history must be extremely mild. I don’t allow any recent felonies within the last 7 years, no drug crimes(have you seen how the DEA kicks in drug dealers doors, looks very expensive), no sexual offenders, and pretty much anything that would indicate the tenants lifestyle could end them back behind bars, because jailed tenants can’t make rent. However if the prospective tenant got into a got arrested for public intoxication during Mardi Gras 5 years ago, I would not disqualify the tenant. Things happen, but this is a judgement call.
  • No evictions ever! I don’t care if it was 20 years ago. An eviction is one of the worst, and expensive things a landlord can go through. Evictions mean the tenant would not leave and had to be escorted out by law.
  • I make sure that they really work where they claim. Tenants will sometimes get creative here and give family members numbers, and instruct them to pretend to be employing them. I call jobs and speak with the supervisor, I verify employment and length of employment, this should match what was on the application. I require them to be on the job for at least 2 years.
  • I verify previous landlords, tenants also sometimes try to use family members for this, so use discretion. When the former landlords pick up, I confirm who I’m speaking with then ask them to verify the address of the the tenant, usually landlords will know this address right away and is a good indicator. Its always a good practice to speak to the landlord before the current. Sometimes the current landlord will be anxious to get rid of a bad tenant, and give a false praise. Once confirmed, I ask how the tenant was and how the home was treated. Landlords will tell you if they were trouble makers, or if they were late on rent.

If everything checks out, I can end my search to find a good tenant, and call the prospective renter and let them know that they passed the check and give them a move in date, and request one months rent plus a security deposit equal to one months rent. By pre filtering, and then screening and verifying potential tenants in this manner, I end up with end up with a responsible person who has the makings of a good tenant. I find that tenants with clean backgrounds, and pass these verifications are not flukes, they actually care about their reputations, thus are less likely to tarnish it. Both my tenants from house #1 and my tenants in the townhouse investment property that have been screened this way have rented my homes for 3 or more years at a time, and are extremely low maintenance. By thoroughly researching to find a good tenant from the beginning, I have less hassle and can truly consider this income stream passive income.

 

Are you a rookie landlord or a seasoned veteran landlord? Any tips I might have missed here? Let me know in the comments below!

why your house is a liability

Your house is NOT an asset

Chances are you’ve heard someone at some point utter the phrase “your house is your biggest asset”. Seems legit, after all home ownership is the American Dream. But the reality is, your house is a liability, perhaps your biggest, depending on other financial  factors. When you purchase a house to live in you begin to incur inevitable expenses.

What are assets and liabilities

Before we can understand why your house is a liability, we must first learn what both assets and liabilities are. In simple terms(because simple is always better), an asset is something you buy that generates income. Things like rental properties, businesses, royalties, or affiliate  The latter, liabilities are the opposite, things like cars, clothing, electronics, boats and generally anything that cost money to maintain and/or generates expenses. These terms, and the ability to identify such are fundamental on your journey to financial freedom.

Why your house is a liability

Now that we know these terms let’s think about home ownership in all its American glory. You find the house of your dreams. You make an offer, get financing, and everything runs smoothly. Let’s look at the expenses that you are now responsible for. There the mortgage, insurance, taxes, lawn care, and repairs. All of these expenses are taking chunks of your income. In the unfortunate event you lose your job, these things will likely become unsustainable, and the home may likely end up in foreclosure.

How a house can become an asset

On the other end of the spectrum, real estate used as an asset, is one of the best ways to generate passive income . Let’s take the same example from above, however, instead of living in this house, we make it a rental property. There will still be expenses involved such as the mortgage and insurance, but by renting this out for an amount greater than the expenses, a profit margin is created. Now the rent – mortgage, insurance, and taxes = profit. That same house, that was once a liability, is now generating income rather than extracting it. Not only are you now generating a passive income, but you are also paying off the home over time. You can always convert your house to an asset from a liability by moving out and turning it into a rental, the way I did when I accidentally started building passive income. The most important thing to remember is that you always want to own more assets then liabilitie

5 tips for airbnb host

A few tips for airbnb host

So it’s been a year since the Airbnb experience with house #4. 72 guest later, I’ve become more seasoned in the art of hosting. Here are 5 tips I would like to share these tips for airbnb host that I learned on my journey.

  • Respond to guest right away. Guest love when you respond to inquiries in a timely manner, 95% of guest just have simple questions about the property or area. Most of the questions can be answered via the Airbnb app. I highly recommend downloading the app, it’s much faster then the website. I prefer to try to eliminate the need to exchange numbers with guest, to keep this as close to being passive income as possible.

 

  • Create a guest book. Airbnb guest questions can be greatly reduced by typing up a few pages with info such as, info on the area, the house rules, wifi password, and check out instructions. I always sit this on the coffee table in the living room so it’s the first thing my guest see as they arrive. This drastically reduces any post arrival confusion.

 

  • Install an electronic passcode lock and a nest thermostat. In 2016 I’m all about automating processes. These two items save me hella time. The electronic passcode locks eliminate the need for me to have to pick up and drop off keys from guest. I run several businesses so I simply don’t have time. Some Airbnb guest have late flights or drive in and don’t reach the home until after midnights, it’s much easier to email them a passcode. The Nest is essentially a thermostat that connects to wifi and can be controlled from my iPhone. Because I live in Florida, it gets really hot, to the point I wouldn’t feel comfortable letting someone walking in a boiling hot house. The AC can take several hours to condition the air, so I like to turn it on 12 hours before a guest arrive. With the Nest I can do this from anywhere, as well as shut it off when guest leave, saving me money on the Electric bill

 

  • Handling picky guest. As a Airbnb host, feedback is king, when a guest first arrive, out of 72 guest, I have had 2 guest not like my home and request to leave. Always check with the guest when they first arrive, ask them if they like it. Most will happy and tell you how beautiful your home is, every once in a while you get someone who decides that they prefer a hotel. My advice is to let them go, but have them cancel on their end. By having the guest cancel, it won’t count against you, and once the guest cancel they no longer have the ability to leave you feedback.

 

  • Have procedures in order and follow them. I have procedures in order from the time the guest first contact me. I always double check that they have read the entire listing, and ask if they have any questions, if all is good I allow the booking. On the day of arrival, around noon, I send them the electronic lock code, with a message asking them to contact me when they make it in. I do this for two reasons, to make sure they that found it, and that they are happy with it. Once the guest confirms they are pleased. I send them message about the guest book and that it has info about the house as well as the wifi passcode and tell them to enjoy the rest of thier trip. On the day of arrival I ask if they enjoyed the home, then remind them to view the check out instructions. They will usually confirm they enjoyed the rental, when they do, I follow up a few hours after departure and thank them for leaving my house in good shape, and that I will leave them 5 stars, and if they enjoyed my home a 5 star review would help my small business grow. Ask for a good review?….heck yea, and it works too(of course I gauge this, depending on the vibe)

If you follow these tips, you will do well as an Airbnb host, most of it is common sense. Keep your guest happy with in reason, each guest is different, so try to be understanding. If you would like to become an Airbnb host click here to sign up