How to Live for Free in the Most Expensive City in America - most expensive restaurant dishes in the world

Let me tell you something that most people don't like to hear: the wealth-building process, which includes investing in real estate, is a direct function of how much you and your life sustain.
If you live in an expensive city and you are an independent adult, you are responsible for your high living expenses.
After graduating from college, I chose to move to an expensive city very thoughtfully and sacrificed some revenue potential to get a very real cheap living expense of tens of thousands of dollars.
When you decide to live in expensive places, you give up the opportunity to build wealth like people who live elsewhere.
If we accept this, then you must understand that when you live in an expensive city like San Francisco, you will give up the opportunity to accumulate wealth and live there.
I personally don't understand the choice. Then I visited.
Last week, I was lucky enough to go on a business trip to San Francisco and go to big pockets. I loved it.
I understand why people who live there will definitely love it too.
But what really stands out is the people.
Tech entrepreneurs with their infinite optimism, many very good young people have just started to live and work in the greatest company in the world.
Those who continue the anti-cultural movement of the Franciscan for decades.
Of course, those who are left behind by the incredible progress of the city --
Homeless people and beggars that cannot be ignored.
In general, there is a culture in San Francisco that cannot be copied --
A possibility (for some folks)
It is impossible to go out.
If you want to get into the real estate industry, it's hard for you.
That is to say, let's talk about the purpose of this article --
How to start in real estate in San Francisco
Expensive cities like this).
First, let's define why traditional real estate investment is so difficult in San Francisco.
There are two main reasons: The second point is the real key to aspiring real estate investors.
Most of the obstacles in the real estate sector can be overcome by looking for great deals and working with people who have capital to fund your new business.
But if a property loses money, there is nothing to save you.
Although ordinary citizens may think the rent is ridiculously expensive (and they are! )
For real estate owners, rent is just the material below, find a chart showing some of the larger cities across the country.
Here, we will have an average fair market rent (FMR)
Calculated at average selling price.
These three charts tell us three things: These three are a challenge for the landlord, because when the purchase price of each dollar of the property generates very little cash flow, this means that leveraged real estate investment may generate negative cash flow.
In other words, if you are an ordinary person who wants to buy a traditional rental property, you will.
But, as I found out during my trip to San Francisco, is there a way to make this all work, not only is the rent high, but the hotel is also very expensive.
In fact, the whole short-
The rental market is expensive.
This is probably the biggest short term stay when looking for Airbnb accommodation
Regular rental platform in urban areas (And country)
I was shocked by the ridiculously high prices and the ridiculous places to offer.
One of the cheapest attractions near the financial district (
Where is the meeting I attended)
For example, $179 per night.
This is not crazy.
Except I'm staying at aWhat!
While I appreciate the amazing frugality of this woman, it seems a bit extreme.
But it also triggered an idea.
If San Francisco makes this woman's strategy a real investment, if they get cash flow by renting these high-end apartments on Airbnb, perhaps this will allow them to take advantage of their love for the city's knowledge and the property purchase of their backyard
There is actually a property of some financial significance.
Maybe St. Francis is like a mythical house.
Hackers from other cities (
Like I was in Denver.
Can live for free.
So, I spoke to my colleague Peter, who generously donated some incredible data about Airbnb rentals, occupancy rates, and competition (total listings)
In the past few months
This data is broken down by community, including only ten of San Francisco's most popular Airbnb communities.
You can check the raw data and some of my calculations for San Francisco in the spreadsheet I set up here.
Then I made a small bar chart of the data (
You will find that I like these. .
Here's the result: Let's break down what's happening here.
Airbnb revenue is made up of two things: unlike traditional leasing, the occupancy rate of traditional leasing is usually 90% or higher, short-term
Regular rentals usually miss a few days a month.
This means that cash flow can change greatly due to months, time of year, important events, etc.
The data here is the average value of house prices and average living standards per night.
We then multiply it by getting the average monthly income based on the historical average.
Please note that occupancy rates are particularly low in some of these communities (
Less than 50%.
While this may have something to do with that particular community, it seems to me that a great marketer can make a big difference in these revenue figures through some smart application effort.
Finally, in the data set, we take the average price of the most common type of property sales in the community.
Most of the blocks we studied were looking at apartments.
But for the community outside the Silver Terrace and sunset, we can see the single house (SFRs).
From the data, it looks like two blocks for this particular strategy, the Bull Hollow and South Beach, on average, may have mathematical implications.
It seems that the average listing of Airbnb can bring nearly $50 k in revenue to these places every year!
This shows me that it is possible to have a typical property in some of the most popular neighborhoods in San Francisco.
In Niu Gu, for example, Airbnb's monthly income for the city is almost twice as high as the fair market rent!
Remember, this is the case with this data set.
I think you can do better than my average.
Again, please feel free to download the dataset for yourself here.
I hope so far I have at least convinced you that it is possible to achieve cash flow in San Francisco.
As an outsider, I still don't have access to the city, and I will never say that things will be easy, but I would like the numbers I show here to at least indicate that cash flow is.
It is possible, that is, if you can overcome some of the main obstacles: quoting Airbnb's website (
A more thorough explanation than we will look into here, and any and all interested parties --
Regular rent in San Francisco should be referenced in conjunction with official documents distributed by the municipal government)
: People interested in short selling-
Regular rentals in San Francisco should be aware that there is a very deep-rooted lobby against short term rentalsterm rentals.
This lobby likes to patrol the Internet, Airbnb, and even comment on my previous post on bigerpockets.
As I can prove, this hall is working very hard to crack down on people who want Airbnb properties, they are being counter-tested by various
Airbnb lobbyists have also been discussing this topic in the past. A savvy short-
Regular rental investors will read the law carefully and act in accordance with the city's instructions.
You were warned.
There are people who strongly oppose your success in this type of investment and if you are disobedient they will do their best to hit you.
By the way, I will also be careful with the apartment. Surprise!
Many people who oppose shorting --
Term Associates has a strong position in San Francisco's HOAs (
Read: If this is a surprise for you, you need to do more research before entering this game).
Don't put yourself in a position where you may be vulnerable to a large HOA organization that prohibits shortingterm rentals.
This can undermine your property's income potential overnight.
San Francisco taxes all short sellingterm (
Less than 30 days)rental income.
This tax is 14%, paid by the guest.
You have to tell the guest that this is a fee that will increase the cost of their stay.
While guests pay, Airbnb will usually be responsible for the collection and remit the payment to the city, it certainly does not help your cash flow and it is not too interesting to pay as a tourist.
This is the part where you have to be creative.
Unless you make hundreds of dollars a year, you may not be able to work with traditional banks or lenders.
You may need to work with wealthy investors, split equity, and find ways to manage a business that combines with your life to gain common economic benefits.
Or you may need to be creative about your debt structure and find a way to get a huge leverage.
In any case, you may have to give up the purchase of the property.
This may affect your return, but it may be enough for you to make a huge profit from future appreciation and enjoy most of the great city for free.
Before closing this guide, I would like to leave two basic, possibly obvious views for future Airbnb investors: If the above is TL;
Dr, here's the point: With the help of our friends, the math I did for you seems to indicate that using Airbnb can get some cash flow from real estate in downtown San Francisco.
This is good news.
The bad news is that this cash flow needs to work, the property is expensive and difficult to raise, and you will face scrutiny and opposition from people from all over the city who are trying to stop you.
San Francisco, I love your city, but I will not put my money on your real estate.
That said, if you like it enough, there is no reason why you can't go through these obstacles and sweat.
If you can use math, common sense, creative financing, and follow the rules carefully, you may have some great property and enjoy your beautiful, wonderful culture for free, services provided by airbnb.