Create Your Perfect Airbnb Receipt Template for Planning with Ease

Airbnb receipt template for Planning

[Music] [Applause] hey if you're thinking about starting an airbnb business and you want to run some numbers to figure out what's it going to take to start up how much money could you make how much money could you lose and just really all the numbers behind what goes into starting and operating an airbnb business then this video is for you we have developed a financial projection template built specifically for airbnb businesses and uh we're going to walk you through how to use it here today my name is adam hooksema and i'm the co-founder of projectionhub we've helped thousands of entrepreneurs create financial projections for potential investors lenders or just for internal planning and so really excited about this airbnb template and you can find a link to the template in the description of the video below and now we're just going to dive in and show you how it works so the first thing you need to know about this template is that any cell that's highlighted in blue is an assumption that you can change without breaking something in the template so i'm just going to walk through the assumptions that we have put in here um and and show you the results so we've got adam's airbnb empire here and we are assuming that we're gonna have to put in a personal investment of 150 000 here to to get started and that is going to be used to purchase help purchase property as well as outfit it with furniture and and just have working capital for the business so um so you put in your initial investment here there's a table here where you can put in fixed assets other than the rental properties themselves so what i put in here is just the furniture that i would expect that we may have to buy for each additional airbnb unit that we that we purchase and this could be furniture and appliances as well so you know washer and dryer and refrigerator that you may need as well okay so here's where we're going to put in the properties and so what we've done here is we've got property one is a single unit airbnb we're saying that there's one property we've purchased it instead of lease it so we purchased it where purchase purchase price is 300 000 and that's the purchase price plus the renovation so if you are purchasing a property and then renovating it to list it on airbnb i will go ahead and put the full purchase plus renovation price here and you'll see that i put a useful life of 30 years in salvage cost per property of 300 000 so i'm basically what i'm doing here is just assuming that there's no depreciation hopefully the value of the property goes up if we depreciate the property you know it's going to kind of throw off the projections you're going to show a net loss even though depreciation is a non-cash expense and so i just put it as the same the same dollar amount so that depreciation doesn't really throw us off now um we're saying that we've purchased this in month one and that we're able to get a loan for 210 000 to finance the property so you know based on our research looks like if you're able to get a loan to purchase a investment property you're going to have to put in probably 30 percent so up here in the equation here you can see that we're taking the purchase price here times 0.7 so 70 percent that's what you're going to be able to finance probably and this can vary depending on you know your credit score and your situation in your personal financial situation but that's what we're assuming here we're assuming an interest rate of five percent and um a 30-year 30-year mortgage 360 payment so um and then what we've done here is we're saying that okay our second property property number two is going to be a multi-unit property for 500 000 we're buying and we're going to buy that in month 11. and we're going to again finance 70 of that and then our property number three we're going to buy a large unit airbnb for 500 000. we're going to buy that in month 23 so the end of year 2 finance 70 again and then just as an example so property number four let's say okay you can't you can't keep buying properties you're running out of down payment here and so you want to but you want to keep growing the empire here so you could lease a property from somebody else that you would then operate as an airbnb and so you have the ability to to either purchase properties to operate or lease them and so if you if you select lease then it it's going to kind of black out the uh this section the purchase price property and the the other sections are irrelevant so we're saying that we lease this property in month 35 and we are paying fourteen hundred dollars per month in rent to lease that property all right so now based on those assumptions and we're going to come to our input revenue tab and so this is going to pipe in those four properties for you into this table and then you can select here what month you're going to be able to start renting it out so basically what you what we did here is we just took the month that we purchased it and we added two months to it so we're saying in two months after we purchase or lease a property that's when we can start listing it and actually generating income so saying month three of the projection that's when we start renting and there's only one unit available in that first property to rent and we are assuming monthly rent the potential for monthly rent is 4 200 and i would suggest that you use airdna.com to get an idea of the [Music] rent potential of the properties that you're looking at so it's a really cool website you can go there and you type in a particular city for example you type in a city and it will show you the average a number of data points but it'll show you the average rent per month the average nightly rent that people are generating and it also show you seasonality so you can see how that changes with time as well as you'll be able to see the average vacancy rate for properties like yours in your city so lots of great data you can go there and then fill out these assumptions based on what you learn from air dna so i'm assuming that we're our first property is going to be bank it 25 of the time which means it's going to be used 75 percent of the time which may be pretty aggressive but let's say we're really going to get aggressive with this business and so we want to we want to list it to be used and so you can see then your monthly revenue per property based on those assumptions and you'll be able to enter in a utilities cost per month an insurance cost maintenance cost property taxes and any other costs per month that you have associated with that specific property and you'll be able to come up with your total cost per month now jumping over to our input other expenses so here we can put in other fixed expenses or variable expenses that we have in the business that aren't necessarily tied directly to a particular property or if you have expenses like cleaning expense where it's not necessarily specific to any individual property it's just every unit is going to need to be cleaned and so we have here an assumption of a per unit cleaning cost of 250 per month a per unit or here per property so you can do per property or per unit so if you have a multi-unit property each unit's going to need to be cleaned but that property only has one lawn right and so you can do expenses on a fixed basis a per property a per unit or a percentage of revenue basis so a lot of flexibility here again same thing with like internet and security those may be per property expenses instead of per unit you can put those expenses in here then here we can say okay once this airbnb empire gets up to a certain level maybe we need to hire a property manager part-time maybe you're doing that yourself in the early days as you're building up the business but here we show a part-time property manager making twenty thousand dollars a year just as a part-time job um starting in month 49 so the end or the beginning of the fifth year we're gonna we're gonna hire this property manager so once we enter in all of those assumptions we're able to see our profit and loss at a glance and a number of useful data points of property and per unit data use of startup funds startup capital required and you can see look you're you're losing money you have a net loss in in year one as you build up um and you you know you can see over time i mean you've got a significant amount of dollars invested into the business and you know we're we're still not uh just raking in net income here but um you know i think a big thing for a lot of airbnb owners is the question of whether the property also increases in value as well and so that's probably where the big returns come for folks is you know if you can generate a profit by operating the airbnb business as well as owning and holding that real estate paying off the debt service on that real estate while you operate the airbnb and then you know increasing the equity value of the property over time that's really where the the the return on investment is probably going to come from so you know of course you can operate the business uh you know maybe more efficiently or more profitably than the assumptions that we've put in here but i think our assumptions you know are relatively um aggressive already and so just be aware you know go through and before you put down 150 000 down payment on on your new airbnb property make sure that these numbers work out know what you're getting yourself into if you have any questions please don't hesitate to comment in the comment section of the video below or reach out to us if you need help filling out the template support at projectionhome.com