My Container Home Lost Money on Airbnb Last Year

[@pnwpaths2925]

Dude don’t clickbait… You didn’t lose money. You used positive cashflow (extra $2,000 towards mortgage), to pay it off quicker. Not a loss and yes I would do the same thing. Pay it off ASAP! Great job in pulling the trigger and making an awesome investment. Motivates me to hopefully do the same soon 🤞🏻

[@seanbramble]

Your payments towards loan principal aren’t technically an expense .. you actually earned ~$24k this year and will be closer to $50k next year. You can keep that profit as cash, invest it in stocks, build another property, or pay down your loan with the profit … but those things aren’t expenses. You’re just exchanging an asset for another asset

[@Filipe_2004]

Exactly ;)

[@devonloerop]

Good way to put it. I guess I was explaining from a cashflow perspective. Like I mentioned in the vid, if I did dial back the loans I could have this earning me money each year and the numbers you said are accurate. 🙌🏻

[@carolinabullfighter574]

​@@devonloeropso it's just clickbait then. "Not gonna sugar coat it." Got it. Never recommend videos from this guy. Bye bye.

[@johnnyfive-bc]

@@devonloerop your title is clickbait. Do better

[@johnnyfive-bc]

@@carolinabullfighter574 the first person calling this guy out. Finally someone with a backbone. Nothing is more frustrating than seeing people so desperate for KZbin success they put out miss information and terrible data and clickbait titles.

[@JourneyMore]

Awesome video Devon! We were honored to be one of the first to stay last year! You've built something truly special and you should be proud. We know you are going to see amazing success with the Bin and Cedar Hollow!

[@devonloerop]

It was so great to have you guys out on site. Thanks for helping to calm the nerves of launching the home and not knowing it if was going to be worth it! Next time you're back out this way you gotta check out the CH. It's going to be really cool!

[@startingtech3900]

did you guys bang in the hottub

[@GavinKohAquascaping]

Congrats on your homes and your entrepreneurial journey! I appreciate that you share so transparently and not try to hype up what it really takes to build and run an airbnb. Your success is well deserved!

[@devonloerop]

Thank you very much!🎉

[@socalstr]

Turning your construction plans into a $50K ticket is the real genius here. 1,000% margin.

[@smcox1991]

Exactly what I was thinking. Screw the people renting it 😂

[@Mcgeee]

This is awesome. So cool seeing all the behind the scenes stuff!

[@devonloerop]

Thanks man! Stoked to see you start building your plot out soon!

[@m.creekrenovations]

Dude the cleaning expense is amazing! $1600 a month! If you changed renters 10 times per month that’s $160 per cleaning! Great job

[@startingtech3900]

he does charge a cleaning fee

[@rodriguezbrit]

Thank you for being so transparent on your numbers. This is so helpful for us STR investors!

[@devonloerop]

Of course! I'm excited to make the 2 Year video and see how things go now that the hype of launching the home is dying down.

[@braydenmurrah1042]

Really appriciate you being honest with the costs. Makes me exited for the passive income you'll have when it's paid off. You'll be set!

[@chuckwoolery9005]

Oh please. what makes you think anyone is honest about their vacation rental online. Show me one video where they take a loss and have to sell or go bankrupt. The guy needs investors and clicks so he will say whatever he has to.

[@braydenmurrah1042]

@@chuckwoolery9005 who the heck ruined your day 🤣

[@chuckwoolery9005]

@@braydenmurrah1042 I live right down the road from this guy. It's all a scam.

[@PhilipSteeves]

It's a beautiful house!!! With your energy and creativity I'm sure you will succeed at anything you try to accomplish!

[@devonloerop]

I hope so!

[@PortlandiAFrame]

Great work Devon. The numbers are impressive. A testament to your hard work over the past 18 months!

[@devonloerop]

So much hard work. Social media sees so little of what it takes to make this stuff happen. Best of luck with the build.

[@fredquinn3919]

Congrats on your wonderful success....you've definitely earned it the old-fashioned way...I really enjoy your channel. Looking forward to what's next!!

[@devonloerop]

Trying to work hard in my 20'a so I can play a bit more when I'm older. Working on something really cool for this fall 🤫

[@iflick7235]

These videos have high production values. Thoughtful, likable interesting.

[@devonloerop]

thanks a ton, I slowed this one down a bit and took my time producing it.

[@scottperry2541]

At a 5% mortgage rate I wouldn't pay it down. That is leveraged cheap money. Let your cash flow work toward funding a new build....and on and on and on.

[@Houseds]

Your container house is amazing, very beautiful and sophisticated in design and construction.

[@devonloerop]

Thank you very much!

[@StephonBroughton]

Great video Devon! Looks like this property is earning some serious cash. Glad all your hard work is paying off.

[@devonloerop]

Thanks! It's doing well, 2024 is going to be interesting.

[@urbannomadslife]

Technically you made money because that extra loan payment was technically income that you decided to apply towards the loan principal so you really made an extra 2000 a month so you definitely made money. Which makes sense now because something wasn't adding up when you first showed it. But all your time is also an expense as well as you could have used that time to do something else so you should factor that in as well. But anyway the house looks awesome! And I'm glad you're selling the plans because I'll definitely be a buyer when I do my house.

[@devonloerop]

I do understand that technically I made $ but that's just in equity. Cash flow, I ran negative for the year.

[@urbannomadslife]

@@devonloerop yeah, cash flow is important - the life blood of a business.

[@mbailey802]

guy who designed this plan set really shaking his head right now lmao. sick build.

[@mikesang9567]

give yourself credit for tax deductions (mortgage interest, property tax) and mortgage principal reduction.. also as you mentioned, you have a ton of fixed cost that wont be duplicated on the 2nd property.

[@onyxinvestments8367]

A mortgage principal payment is not an expense. Only mortgage interest is an expense.

[@airduce]

If the plans were not prepared by you, and you purchased them from another source, you typically are not allowed to resale the plans. The original designer/company owns the plans. You purchased the right to use them to build your cabin. It would be best to check to verify...

[@J3Nutz]

where is this exactly? what attractions are around? Do people just want the novelty of staying a container house in a forest setting? what activities are there besides hiking, or renting bikes? what is the average length of stay in summer vs winter?

[@Channel-yw5gm]

Hey man, the new clip-on mic is doing the job!!

[@devonloerop]

lol you're one of my true followers to know my mic struggles 😂

[@TheCreditShifu]

Dude, you realize this doesn’t count as a loss? You are using revenue to pay off the loan principle, which is basically you banking that money in the property, increasing equity. Would be cool to see a breakdown with principle and interest, and also the tax deductions you got for depreciation, mortgage interest etc. i love the house though, I might even buy your plans.

[@fatcoinpurse]

Just be normal bro we all know he’s talking cash flow

[@TheCreditShifu]

@@fatcoinpurseit did cash flow, about $2000 a month, but he put it towards extra principle payments.

[@TheNorthwoodsBuild]

Really nice builds… like your channel

[@williamlheureux5308]

Dave's advice to pay up debt only applies on personal homes. Rentals make it possible to deduct interests from the loan off your revenues. I would suggest not to pay it off faster but keep the additional cash to invest in other projects. Great video, I enjoy following the pacific bin !

[@johnnyfive-bc]

He has no clue how to spend his money. He spent $2,400 in a single month to clean this tiny airbnb... the chances of him understanding a simple concept of paying a loan off as slow as possible isnt going to be something he understands.

[@devonloerop]

My loan terms greatly incentivize paying it down quick or my rates escalate after year 3. So maybe once I get the loan to a manageable place I'll be able to dial it back and think about another build/property.

[@johnnyfive-bc]

@@devonloerop so your video should of been titled something to do with paying down your loan quickly. Not giving your audience the impression that what you spent was out of necessity. because you could have spend under 80k easily.

[@YouDoYouShields]

@@johnnyfive-bchaha do you have like a personal vendetta against this guy? Sure it was click baity. Barely. That’s KZbin lol

[@Darthvolvo]

This inspires me to one day have my own container home.

[@devonloerop]

Haha so glad to hear! The construction plans mentioned in the video could get you off in the right direction if you're interested.

[@theotheleo6830]

So using the profits from Airbnb to pay your mortgage is a loss? Please explain.

[@diegoj5563]

I have been looking at the Monroe or east of Monroe area for months. Looking for that sweet land to grab for a vacation home/Airbnb. Container home was an optional build for me back in 2019 but with lumber stabilized and containers rising in price how would you approach this same home? I've considered containers/A frame/ log homes to build.

[@diegoj5563]

Either way amazing home and awesome videos. Loving the transparency within and the build processes

[@kdockrey]

What would the rent for this house be as a long term rental? Just curious how it adds up in comparison to the rent as a short-term rental.

[@superdanman]

Love the videos, hopefully this income stream will go up for you and help with cost and push you to more projects. Very fun videos to watch..

[@devonloerop]

I hope so too! I love building and showing yall.

[@creolelady182]

Once this beautiful home is paid for- will you live in there full time?

[@susangasporra1176]

Such an amazing home. Thank you.😊

[@yackablejohnson1485]

I've never been 1st before. I need a job.

[@devonloerop]

Proud of you

[@edwardmoulaison1359]

🤣@@devonloerop

[@urbannomadslife]

Huh?

[@begood9423]

Seems like the larger mortgage payments are also a way to lower your taxes. First time to see one of your videos, saw a thumbnail provided by KZbin and love your video very well done and informative.

[@devonloerop]

Thanks so much!

[@thomasreto2997]

Aloha. I watched your post and pier build of the cedar hollow house to use as a reference for a personal project. My wife and I own a house on the Big Island. What we want to do is expand our existing ohana (separate guest house for friends and family). This 20x20 or so post and pier structure seems to….knock on wood….take earth quakes well….a 6.5 and most recently a 5.7. Would you have any thoughts on this roughly 12 x 16 foot single room add on.

[@kleinpics]

Hold on you said you have a full time daily job? How can you do both and what’s your daily job (just curious)?

[@devonloerop]

When I'm in the heat of a build I usually am working 90-100hr weeks between my 6am-4pm Engineering Job (40hrs), and then I work another 60hr/week on the build. Definitely not sustainable long term but trying to take advantage of the energy I have while I'm young.

[@devonloerop]

If anyone has suggestions on how i can further optimize this home please let me know! 🙏🏻

[@calliousfriends]

Bro been watching since you starting watching pacific bin 🤧 hook it up with a free night stay up there? 😭I’m from Dallas

[@AestheticFilmFiles]

This might sound silly but have you thought about raising your nightly rates? Do you spend any marketing dollars on Instagram ads? We’ve found Instagram ads to generate a decent rate of direct bookings and with your video experience I could see you bumping up your rates with a little more marketing

[@seanbramble]

BUILD MORE PROPERTIES!

[@devonloerop]

@@calliousfriendsif you Venmo me $400 I'll gladly give you a 1 night free stay!

[@devonloerop]

@@AestheticFilmFilesthat's actually a big plan for 2024. Since I won't have a build in the works I am aiming to lean really heavy into refining my business processes, and marketing these homes.

[@LeeLinscott]

How do you get starlink to work with so many trees around?

[@devonloerop]

it was a little spotty, I ended up switching to Tmobile wireless home internet and the service has been awesome! and it's only $40/mo

[@eddiemalvin]

73% occupancy is insanely good. Do you get mid-week rentals or are people simply booking entire weeks/months?

[@creolelady182]

Have you had any problems with squatters or people who didn't want to leave past their lease?

[@anonymous_friend]

The loss seems intentional to avoid income taxes.

[@tomroggero]

Hey Devon, sorry if you already answered this... do you rent or have bought already your day to day place? I'm in doubt whether to invest in real estate for rent or for myself.

[@devonloerop]

I've been renting ever since I got out of school in my opinion it's worth just paying $1900/month in Seattle to open up that extra cash to pour into investment likes this. Plus it's a renters economy right now so once I figure out where I wana settle down then maybe I'll look at buying.

[@sandeshupreti6600]

Are you sure that your place will be fully booked in 2024 ? If not, how would you resolve the problems that will arise ?

[@MaksimIzer]

Last video i watched was build cost, well done following up without clickbait garbage like 90% of channels (like shelby)

[@johnnyfive-bc]

100% he just says whatever he wants to try to become popular on KZbin. Imagine is family members seeing is clickbait nonsense. Unreal.

[@danielocampo543]

Dave Ramsey!! For the Win!!!

[@LeisaBekkers]

Do you have the plans for Pacific Bin?

[@fascinationmama]

Can I ask if container homes are expensive?

[@devonloerop]

check out my other cost breakdown video

[@redefinerelentless]

LETS GOOOOOOO🔥🔥🔥

[@yuzuichikawa]

Dang... I would love to rent there, BUT I don't make enough a month for you to rent it out.

[@devonloerop]

I would love to host you in the future. :)

[@urbannomadslife]

It's funny, I was just thinking about your project wondering how it was going and then boom this video shows up - weird

[@devonloerop]

The almighty algorithm!!

[@urbannomadslife]

@@devonloerop I think it can read our minds now lol!

[@justinrink6755]

I'm curious what those incentives are for paying your loan down sooner or what your interest rate is. I know we grew up with the Dave Ramsey mindset but I'd debate that not all debt is bad debt

[@justinrink6755]

love the grind tho you're killing it. both those properties are just gonna keep getting sweeter

[@devonloerop]

Yeah.. I guess I just hate the thought of having a debt looming over my head. This just gives me a lot of flexibility and have the goal of becoming my own bank 5 years down the road. I'll still take on short term debt (2-3 year cash infusions loans for the upfront cost of a build in the interim) to build homes but I want to get to a point where I can full cashflow all builds by the time I'm 40. I know this might limit my overall potential but the peace of mind and less stress of no debt is very appealing.

[@justinrink6755]

fair play man, love the vision. it's been fun watching all of this grow!

[@robdavy4468]

Where do commissions fot airbnb or tourism taxes come off? (I think you said you had the latter once?) Also, how is it making $8,869 in profit before loan payment, but loosing money after you make a $7,500 monthly loan payment? Wouldn't that leave profit of $1,300/month? You got super exact with most numbers, but then kinda wishy washy with the final outcome numbers lol

[@devonloerop]

No that's a good point. My starting revenue #'s started with taxes already being taken out. Airbnb takes their cut before I get paid out anyways so I don't ever see that cash.

[@owenwiseman6112]

To all the weirdos mad about the clickbait title--you get this is the internet, right? Should the guy put all this work in and then not do the obvious thing to get the most traffic possible? That would be downright irresponsible!

[@fortyozsteak]

Why would you ever pay off your loan? What a massive mistake!

[@devonloerop]

Yeah! Debt free sounds stupid

[@fortyozsteak]

@@devonloerop It’’s a horrible short-term and long-term strategy. It’s a rookie mistake. Look at the other comments. Leverage is your friend. Instead of paying down your mortgage use that money to reinvest or improve the property. It’s the most basic 101 rule of real estate investing…

[@757_savage2]

Buen video amigo

[@JamesMic1]

Your tax accountant might disagree with you on 'losing money' :D Great video though!

[@devonloerop]

Shhhhhhh

[@LastShade_]

I’ve never been 2nd I need a job

[@DigitalSwagg]

If you're not married, stay single or risk losing it all in a stupid divorce. Trust me, I know first hand.

[@Palantir_Daily]

Terrible take. You picked the wrong one, my friend.

[@thunderbear82]

People can't afford family homes, Luxury homes is out of the question for 90% of people in 2024.

[@thomastimothy777]

How bad do you want it?

[@rickibrown9233]

Usually like your vids but this one is just clickbait. You made a profit and used that money to increase loan repayments

[@devonloerop]

I lost money from a cashflow perspective and I gave a full breakdown on revenue/expenses. Seems pretty accurate to me.

[@ladesigner8764]

How about thinking of locals and rent long term? Better yet, sell it for a fair price so locals have a place to live. Investors are falling out of favor. You all are obsessed with money.

[@MikePeters-x1v]

You have done the numbers, worked all year for a loss, do the numbers again for long term gains, if you sell in the future, capital gains tax will get you. It's not for gains but for tax advantages over time. Your feeding the fish and working for the tax man

[@johnnyfive-bc]

Spending $2,400 in a month to clean a tiny Airbnb... this has to be one of the most troll things I have ever seen in my entire life. Cleaners do not make $100 an hour... they make like $15-$18 an hour tops. In lots of places they make $10-$12 an hour. Anyone can lose money on anything if you are this bad with money.

[@devonloerop]

🤡

[@johnnyfive-bc]

@@devonloerop yes you are a clown… you spent $2,400 in a month to clean your small house.

[@diegoj5563]

You're not paying cleaners per hour to clean a remote Airbnb. It's probably a 1099 at a flat fee or payment to a larger company who has employees. His number makes sense as each turnaround is costing 120-200 for a cleaner to come in and clean.

[@vickynoname9860]

I pay mine $250 in Tampa FL. If she comes 3 times a week that's $750 and they use my cleaning supply.

[@johnnyfive-bc]

@@vickynoname9860 Just because you pay something doesn't mean it is a good use of money. Doesnt mean it is a fair price. I know lots of people would be willing to spend $250, But there are lots of people who have the ability to get it done for a lower amount and will put in the effort to get it done for a lower amount. He posted something with a title for clicks.

[@dwiller11]

Short Term Rentals ruin neighborhoods and you are part of the problem. You should sell that to someone who will participate in the community instead of dragging transients through Sultan every weekend squeezing out local residents by increasing the cost of living.

[@devonloerop]

I do particiapte in the community. I've made so many friends and they all think it's great that i've created a secluded space for others to enjoy some of Washington's stunning forest.

[@johnnyfive-bc]

Your heading is a complete lie. Your house doesn't cost over 120k a year. Do better Devon...

[@devonloerop]

With the current loan terms I'm breaking even on a monthly basis. So yes the current annual liabilities are over $120k/year. I explain it pretty well in the video.

[@GavinKohAquascaping]

@@devonloerop You most certainly did Devon, you most certainly did! Congrats on your amazing journey!

[@urbannomadslife]

​@@devonloerophe is correct your accounting off. But you're an engineer not an accountant so we forgive you 😂

[@johnnyfive-bc]

even if you had a 1 million dollar loan at 10% intrest rate that would cost you less than $9,000 a month. $9,000 x 12 is way less than $120k/year. So yes, When I say do better, i really mean it. Your place didnt cost anywhere near a million dollars. just because you are really bad with spending money doesnt mean that is your cost. It just means you decided to spend a lot more than anyone super smart would spend on the property. I can easily pay my cleaners $500 per clean, doesnt mean your audience wont laugh at you. We are too smart, and we know how much things cost.

[@johnnyfive-bc]

why would you encorage such bad data and inaccruate title? It isnt good to share such terriable knowlege to people who will actually thing its accurate and helpful.@@GavinKohAquascaping