A man who goes by the alias Jackson White just bought a house.
If you’re thinking, “So what?” then wait for the kicker: He paid for it using only the money he earned by renting out his apartment on Airbnb … about $US50,000.
Airbnb is an alternative to hotels and hostels, letting you rent out your apartment to out-of-towners (or finding a place to stay yourself while you travel). Recently, we talked about the kind of money you could make if you chose to rent out your Manhattan apartment over Super Bowl weekend (Hint: quite a bit).
But, like anything else, it’s unexpected that someone could work the system so much that they’d have enough money to buy a house.
White, according to an interview with The Billfold, was charging “$200/night and paying $US1,900/mo. in rent, staying with his girlfriend whenever the apartment was rented out.”
White now lives with his girlfriend permanently, and keeps his San Francisco apartment to rent out on Airbnb, charging $US250/night. From doing this, he saved $US50,000 and bought a house.
“I bought [the house] as an investment property, to rent out on Airbnb,” White told The Billfold. “All above the board. Legally. I’ll make more per night, for only a little bit more per monthly payment. Except this is not throwing money away in rent. It’s building equity.”
Right now, it’s legal to utilise Airbnb and profit from it the way White has, at least in San Francisco. But what about if the laws change?
White says it would be a “victimless crime.”
“The way I see it, if you had a chance to rent your place out, have it pay your rent, and have all your debt paid off in eight months or so, and you get a little extra cash every month … but there’s a little risk in it … you wouldn’t at least consider it?”