Financial Freedom Fast
$400k PER MONTH with Luxury MTRs w/ Rachel Gainsbrugh
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Download my FREE E-Book on Scaling Through Partnerships NOW
CLICK HERE
Apply for mentorship with Matt and the FAST FI Coaching Community:
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I'm a shark. If it's not generating me high four figure, five figure a month, I'm not really interested what is your business, grossing right now across all your properties on a monthly basis. On a monthly basis, I want to say $352,500.
Speaker 2:$350,000 to $500,000 a month. That's insane.
Speaker 3:Welcome to the Financial Freedom Fast Podcast, the show that teaches you how to buy back your time and live life on your terms. Learn how to confidently leave your nine to five from guests who've done it themselves. Whether you want to lay on a beach, travel the world or focus on your passions, this show will give you the tools to do what you want when you want. Now here's your host, matt Emmerbio.
Speaker 2:What is up? Financial freedom fast bam. Today we've got on Rachel Gainsborough, who is an absolute beast in the midterm and short term rental space. Guys, $350,000 to $500,000 a month is what she's grossing and she has no doubt that you can, with just one property, be able to reach your financial freedom goals. If you're looking to get between $5,000 and $10,000 a month to be able to quit your job, she is confident that with her methods and with her teachings and the knowledge that we drop in this podcast, that you can find a property that can definitely cashflow you at least $10,000 to $15,000 a month.
Speaker 2:If you are interested in learning to do some of these things, listen in on the podcast to see where you can find out how to do that. If you're interested in learning how to find partners and how to do business and do deals with no money out of your own pocket, if you're already doing real estate deals, you should look into my community and my mentorship. What I want you to do is click the link in the show notes. Reach out to me and let's see if you're a good fit for what I'm doing. Make sure you schedule an interview with me and let's see if you're a good fit. Would love to have you and see if you are right for what we are doing. But without further ado, let's jump into the pod. Rachel Gainsbrew, welcome to the Financial Freedom Fest podcast. How are you doing today, my person?
Speaker 1:Oh my goodness, matt, I'm so excited to connect with you today. I know this has been a long time coming, super pumped about what you're doing for the community. It is a labor of love, for sure, but you're putting out a lot of great content, so appreciative of that.
Speaker 2:So appreciative of you for being understanding For all the listeners out there. We have had some technical issues. We've already done this entire podcast one time. I wasn't going to tell anyone. I'm going to call myself out on my own podcast, because we did this once before, had the whole thing recorded but we missed half of the episode on the recording because the wifi got out because I was traveling and that happened. But we got this scheduled, we got it done. We had some run arounds, but anyway, we're here now and that is all that matters.
Speaker 2:So excited to introduce the people to you. If you don't know Rachel, you need to know her and you need to know exactly what she's doing to create some awesome returns and be able to reach financial freedom realistically fast. I know there's some methods that you have used in the past that you are a big advocate that one property could potentially make you enough money. If you only need $5,000 a month, you could find one property that could make you that amount of money every single month through midterm, short-term rentals, buying these larger properties, these larger houses and being able to make an experience, build an experience for people that want to come and visit these properties. So excited to dig in today, rachel. So for the people who don't know who you are, can you give them a brief overview of who you are right now and what you're currently doing in your business?
Speaker 1:Yeah, absolutely so.
Speaker 1:I used to say that I'm a healthcare professional by day, real estate investor by night.
Speaker 1:This is what I do full time now full time real estate in the luxury short-term rental and high value midterm rental speed and what I love about it is I now have the opportunity to help other burnt out medical professionals, like my former self, to get into the game, and so my goal is not to necessarily own all of the properties, all of the doors, but just a few strategic doors that will move the needle for me, because I'm not just focused on my ROI. My ROE is important as well, and I have a whole husband, two boys and three dogs and mom and dad that I'm supporting, and I have some goals in terms of supporting others and other countries that are not really represented women we get to put women through med school, and so I have really big goals, and so my goals are primarily to get into that impact side of my investing, and so I truly believe that all you need is one or two really strategically positioned doors to replace a six-figure income.
Speaker 2:So beautiful and big goals is right, but we can't really even take the time to focus in on the big goals that we do have in life until we buy ourselves that freedom and the availability for ourselves to actually think outside of the box, be free from the financial constraints that we're in and then break free in our world. We can creatively build our own world after we have gotten this type of financial freedom, especially the financial freedom that you have built for yourself. Now you mentioned that you don't want all the doors. Think of you. Strategic doors could be the way to build your business up and get you to that cash flow, whereas a lot of us are like man, I want to own 100 doors and for me to get 100 doors if they cash flow $100 a door, that would get me $10,000 a month. Now, have you had any properties in the past? One door that could just make you $10,000 a month.
Speaker 1:Oh, my goodness, yes and yes. The aha moment for me was when one of our doors made us $28,000, and this is a property mortgage with $2,600 a month. And at that point, talk about an aha moment. So you mean to tell me four of these could potentially give you that six figure per month revenue. So it's amazing when you take action, massive action, and you launch something, and it really grows beyond what you can ever imagine. And so my goal again return on energy. I wanted to find revenue strains that were lucrative period. When it comes to looking at deals, I'm a shark. If it's not generating me high four figure, five figure a month, I'm not really interested, because that's really what was needed at the time to replace my W2. And so that's what I went for. And how do you get there? Investing as little as possible. And so leveraging FHA loans 10% down loans is really how we started. And when it comes to midterm rentals and I know when people hear midterm rentals the big talk of the town has been travel nurses. Yeah, but my sister's a travel nurse and I know that her budget is restrictive. Not that she's not making bang. Daphne is making a ton of money, but Daphne wants to take that money home because she does have a mortgage and she does have a family to support as well, and so for me it's like this isn't going to be a lucrative strategy, leveraging the travel nurse model. But what about the insurance policyholder model? They saw $1.03 trillion in surplus. Okay, that's surplus. Overall revenue surplus yeah, why don't I go and tap into that? And so that's from our midterm rental strategy. That's what we focus on is working with the insurance policyholder companies, and those are $10,000 a month contracts, depending on the type of asset. And for me, again, it's economies of scale. And that you mentioned a little bit earlier that that I like the bigger properties. It's not just because bigger is better, but it is. But the reason I like that too matters. It's economies of scale. Okay.
Speaker 1:So imagine a sweet little couple with one little child going to stand one of our places Like how much can I realistically charge them? Right, not much. So that's why we continue to purchase and we build. We're building a house right now. It's five bedrooms. It has four master bedrooms, wow, and one bunk room. So those four master bedrooms.
Speaker 1:So imagine this you say you have a spouse and your siblings and those siblings. You have three of those and their spouses. I'm counting about eight working people. Oh, three people with one job, right, I want come to me, and then you have a master ensuite. So they all feel like they're. They're chipping in, they're splitting it eight ways, but they're still getting that king and queen-like treatment, cause that's how we travel. So I am my avatar.
Speaker 1:When I'm going on a trip, it's me and my husband, his adult siblings, their spouses, their children, mine their spouse, grandma and grandpa, right. And so economies of scale you just counted a lot of paying, eight paying adults versus that one sweet little couple. Maybe one person's working, or two people are working. You can't possibly charge them $1,500, $2,000 a night. But my group over here, we're paying adults. Yeah, I just wanna have off their backs, cause they're splitting it eight ways and it's still a bargain for them, so it's a win. So economies of scale is very much so what I look for in properties. And then, when my properties are then transitioned to midterm rentals again, we're hosting families who have larger homes, although we have the one that's a six bedroom right now, that's hosting a family who has an 11 bedroom home, cause there's no one else in the market that even had the thought process to serve that specific average.
Speaker 2:Right, this is really amazing and we are digging in right off the jump of the podcast and I don't think I am really excited to dive into that.
Speaker 2:But before we do dig into some of the details, how we can find the right markets, the right areas, the right properties, how we can contact these insurance providers, the policy holders, to try and get them and get this volume, this demand of people to come to us for these properties, so we know where we should buy these things. Before we do that, I don't think we can skip over the beginning of your story, because it is really inspiring. I know you were in a ton of debt with which I think a lot of people can relate to. You also grew up, you were in Haiti and came over and was raised in Miami and, like all the like this huge story behind you. I would love to give them, give the listeners, a brief synopsis of how you got to the initial point, of where you were like, wow, I need to go create some type of different income for myself rather than working for the rest of my life.
Speaker 1:Yeah, I think my story is very similar to a lot of immigrants. For sure, you come to this country. The American dream right is to get the education and go and work for corporate America, become a doctor or an attorney. That's what we were raised on. So came from Haiti. As a little girl raised in Miami in the inner city excelled in math. I was actually a calculus tutor for a while and in sign, so I love my numbers. I love spreadsheet. If you want to get me excited, I love spreadsheet. Oh, my gosh spreadsheet. But next week to the lead, when I graduated, my husband and I. That came with a hefty amount of student loan debt. The undergrad was good to go, got a ton of scholarships for grad school didn't get anything. Took out the max of student loans and that was on me. I take full responsibility. Financial literacy was not taught when I was growing up. There was not any finances to literate upon. So get your education right and so I like that.
Speaker 2:No finances to literate you can't learn about financial literacy. If there's no money to do anything with, you can't spend. You can't learn that Like when you get money and spend it on silly things, like you're going to lose that money if you don't have that money to start with. So that's a unique situation to be in there, but continue.
Speaker 1:Yeah, absolutely. But I do remember vividly my mom would have her little envelope. Back of her envelope she would just jot down what was coming in. She would give away a portion she gave to the church. She tied there 10% and then she would have her bills. She was so consistent and it's just. I think they're heroes, they're modern taking heroes, just understanding.
Speaker 1:Now, looking back, understanding what they were bringing is like did they raise four children on the paid-for house? Just bear a frugal. But as far as any advanced tax strategy, we weren't talking about bonus depreciation. Okay, I'm just gonna tell you right now what bills there was. No 1031. I got 31. No, none of that. No land entitlement, investment strategies from DO debt loans, none of that. There was like day out of debt, pay your bills, keep a roof over your head, and for that I'm ever so grateful. So it was like pure grit for sure. And so that's really the foundation, I think, of what has made me who I am today.
Speaker 1:But fast forward to grad school, having not seen money before, that amount of money before, when it was time for student loans, I took out as much as I possibly could, and then, because we were sold the bill of good that you're going to be making so much money and the world is your oyster. I'm like, oh great, that sounds great. Throw the math out to Dora, didn't take into account, tap the, everything like that. So I graduated, my husband and I graduated with half a million dollars in student loans, and so we did what the most smart people would do and we went out and got a big house and two brand new cars on payment. Genius, genius, brilliant, especially when you're in debt. Well, let's go get more, go get more, let's over leverage, let's over leverage. Yeah, yeah, we've got all the things.
Speaker 1:The furnishing and it was primarily me, because I can remember the side eyes for my husband, a little bit of hyperventilating. He came from a family that had money. He's of American descent and I actually think his grandfather worked for the White House as an economist nevertheless, which is hilarious. So he was hyperventilating. He was like who's gonna pay for all this crap? I'm like we're gonna make money and then the it was 2008,.
Speaker 1:The economy took a dip and it was not what we thought it was gonna be. It was hard to initially get jobs in our careers and we finally did. It was not at the peak of what we were expecting. Then we never took into account taxes and we got that first student loan bill after a grace period and it was devastating. It was quite devastating, I think it was somewhere around 5,000 to 6,000 per month and although we had gotten this big fancy house it was like in the middle of Norah Georgia it was only 1,500 a month. So when you were a student loan bill, it like forex, your living arrangement you have to ask yourself wow, what were you making at that point?
Speaker 1:We were taking home about 90 gross with anywhere from 92,000 to 110,000.
Speaker 2:So you had about $8,000 a month coming in. Is that what that equates to?
Speaker 1:It was a little less than that because deductions and everything, I would say around 6,000 to 7,000 coming in.
Speaker 2:And you had $5,000 a month in student loan. Oh my yeah, that had to be such a crippling amount of like. How the heck am I going to be able to pay this? And I feel like that's probably just an immediate realization that, with what I'm making right now, this is definitely not the path to get this paid off.
Speaker 1:Yeah, absolutely. But the first step was to get to the realization, because it wasn't immediate either, not because it was a deal. There's like the if you're like the free spirited type of person, you gaslight yourself a little bit, you lie yourself and you don't really sit with the numbers. Being a numbers person, I really was doing a lot of gymnastics to lie to myself, Because the bills were coming. There was like eight or nine student loans, so they were coming at different paces, and then your bills are coming at different paces, and then your income. You've got four paychecks that come in at a variety of cadences.
Speaker 1:We just didn't understand why, like why it wasn't tough to make ends meet. And finally we sat down and we did a budget After about, I want to say, close to a year, and it was like uh-oh, that's why we're robbing Peter to pay Paul. I hadn't realized it. And let me tell you, when we sat down and we did that, my husband, he actually had a physical visceral reaction. He got up and he went to the bathroom and started throwing up, literally. But for me I feel like if you can identify the problems almost like in medicine, once you've diagnosed the problem, now we can set up the treatment plan, Because before we were just flying blind.
Speaker 2:You got to realize you have a problem to be able to create a solution.
Speaker 1:Absolutely, and I didn't realize we had a problem. Initially I was like, oh, life is just hard. And so once we realized that, we're like, okay, so what do we do? And it's always a who, not how cool is the expert of getting people out of that? Who do I partner with? Who do I lock arms with? Is there a community, is there a resource? When I looked up the community at the time, it was the whole Dave Ramsey crowd, like it or not, love or hate them right. For us at the time, I won't even say for us, for me at the time, that was the best move. So I went. I want to say I went all in. But that's a lie, because when he said sell everything, because my husband was, he's self-disciplined, so he's always on board with debt reduction, debt reduction, debt reduction, and so he's. Do we really need a six bedroom house? It's only the two of us. Do we really need?
Speaker 2:I was like, yeah, because I'm bougie, right, man, I would love to travel with you on one of these, like your most recent trip that you just came back from speaking. I would love to see the place that you stayed at I'm sure. I'm sure it's pretty fantastic.
Speaker 1:It's great.
Speaker 2:Yeah, a little girl from 80, but I don't know, I've got the bougie hey if you get your bag and you get what you need to get it go, create that lifestyle that you always dreamed of yeah, absolutely, absolutely.
Speaker 2:So we had this whole debt meltdown? Yeah, we had an issue. We see that there's an issue. We decided that we need to go and tackle this issue. You dove into Dave Ramsey for our listeners. If you haven't looked into Dave Ramsey, you can go check him out if you want. But if you're in a lot of debt, I think he's the way to go, because he teaches some great psychological tactics. Debt tackling tactics yeah, Be able to take down your debt as quick as possible. He might not be the top person if you're going to go buy real estate and leverage out yourself and go get into good debt. He might not be the guy that's going to tell you to go do that, but he is great to help you get out of debt. So where did the story go from there? Diving into your, how did that take you to getting your first property?
Speaker 1:Yeah. So from there I became a Dave Ramseyaholic and I drank the Kool-Aid. And my husband he was all four, he just wanted us out of debt, so he supported me along the way, and so the biggest thing that I was holding on to was a big house that we didn't really need putting my kids in the top tier private schools, and the second one was ready to go to school. My husband are we really going to pay college tuition for two kids to go to school? And so he had wanted to sell the house and move all along, and that gave me actually a visceral reaction. I was nauseous when he said that because I had risen from the ashes to the status.
Speaker 1:What would the people say and what would society say? That's always been like an ingrained mantra in the back of my head that I had to battle throughout the years because that's just our background, it's like the French, and you got a society, my husband, who's like having none of that. He was like tell society to give me a call, I will handle it, I'll take the phone call. Yeah, the call, because he's cool is society, specifically, and I can point to it. But it has to get to a point where you no longer care what people think about you or what people say about you, in order to reach a goal that is just going to shatter the glass ceiling. We sold everything. We sold all the furniture, we sold all that. The house, we sold everything, and we moved from a 5,000 square foot home to a 1,300 square foot apartment in a very high quality school district, took the kids out of private school, put them in public school and we paid down our debt in two and a half years.
Speaker 2:And that debt pay down was from buying assets. Or is that fully from your job?
Speaker 1:It was, I would say, 90% from our jobs and reducing expenses. Wow.
Speaker 2:I love the beginning of this story because $500,000 of debt, half a mill in debt, that is a lot of money. That's a lot to pay down. But it just shows that if you put your energy and your time diligently directed towards the goal of paying down that debt and you actively track that target of getting down to zero on that debt, you can move towards that in three years. That is an insane amount of debt to pay down. Did you end up going on the Dave Ramsey show and doing the dinging the bell? Did you ever do that?
Speaker 1:No, that was always a dream of mine, but I quickly transitioned into real estate investing, so I wasn't that pretty anymore.
Speaker 2:New debt to the table.
Speaker 1:Yeah, it's perfect.
Speaker 2:Absolutely. So let's talk now. Let's transition into the more investment type conversation that we're going to have here. Love the beginning of the story. Such a huge tackle of taking down all that debt, especially from where you came from. You went bougie and then you were like I'm still bougie, but I realize I have a problem and I need to get this solved and I need to tackle this. And then you were like, yeah, but the bougie lifestyle would be nice, so if I could afford it, let's figure out a way to do that. So what is the way that you were able now to transition? Let's talk about this. Let's just talk in general about the strategy that you're doing now. I know your first property. You had a big realization when you had a huge month on that coming in and you were like this is the strategy. So what is your overall investment strategy At least what was it when you first started and if it has changed over time, we'll get into that as well as to where you're at right now. But let's talk about that first property.
Speaker 1:Yeah, sure. So my investment strategy when I first started is I wanted to invest in assets that would really make my money work harder for me than I was working for it, because it was almost like a knee jerk reaction. I had paid down that debt and my husband and I we'd pay down that debt, but that came from significant sweat of our brow. We were working as many shifts at the hospitals as possible and we were depleted on time and we were quite burnt out, and so we want to be very strategic. We said to ourselves what investment strategy is going to get us the biggest ROI? And when we looked at all of the ways that you could invest whether it was initially we looked at picks and flipping, we looked at syndications, we looked at long-term rental, short-term rentals, specifically with larger homes that could be positioned as luxury properties For me, that was the highest ROI that I saw in real estate and even before real estate, matt.
Speaker 1:We're looking at other investment vehicles and models and crypto was coming on the scene and all that, but we just couldn't figure out what exactly is. It's like money exchange, what is it? But just because we didn't really quite understand it, we just said what real estate is reasonable. We've purchased a home before we know what that looks like, so let's stick with the real estate until further notice, and we haven't regretted it yet. And so we absolutely love real estate and we absolutely love the shorter-term models. And while leveraging short-term rentals, we stumbled upon the midterm rental insurance strategy just from an inquiry, off of a platform that we hit list of property. So now we just have a hybrid of properties that are short-term and they serve as both short-term and midterm rentals.
Speaker 2:Amazing. I want to tell the audience about this story and I've already heard this because we filmed this on a podcast already. That didn't get filmed. But the first realization when you had, what was it? 28,000 for a month, somewhere around that number you were only paying what All in costs on that.
Speaker 1:Yeah, all in Yep.
Speaker 2:Wow, and so you saw that and you're like this is the way to do this. So what is what's the target property and how do you Target these areas where you're like that is an area and a property that I know could bring in 20 grand a month?
Speaker 1:Yeah, that's a great question. Again, it's economies of scale, so it's rare that you would have a one bedroom. That would bring that right, and so I'm looking for properties that are in great neighborhoods. It can be B plus A types of neighborhoods, properties that are larger. For me, my buy box would be a property that has a little bit of land, like a 0.5 acre. That's ideal. I don't have that all the time. I definitely would not purchase a property that had an HOA for this particular strategy. Our only property that has an HOA is in a resort community with all the bells and whistles, but an HOA in a neighborhood it's not gonna be a good fit for the most part, right Less short term rentals are a thing, and it's approved far in advance.
Speaker 2:Oh, it's okay. I talk a lot of shit on HOAs on this podcast. We'll just stick with that idea, guys. No HOAs, we don't do that. I'm excused by language for each life.
Speaker 1:I apologize but no, seriously, I don't blame you one bit. Outside of that, I'm looking for areas that have a bit of a medium to high depreciation basis, also, like where the property values are. The medium property values are in the mid to high level. So markets, I would say, where there's a significant decline, those markets I'm not loving them. But when it comes to looking at an overall market school grade, we actually look at that for this midterm rental strategy, not really for short term rentals, but midterm rental strategy. We want the school grade either in the location where the property is in or the neighboring location to be quite, I would say quite positive. And outside of that, severe seasonality or extreme rules are exclusions for us as well. So that's like a high level of what we're looking for.
Speaker 1:So I essentially create a buy box at the state level, then the city, county zone, the code level and then at the property level. So at the state level, I do not want to invest in markets where the land values are just extremely high. Or, for instance, california is one that I don't particularly invest in, but I do have members who have condos in California. They're doing really well. I would say. Florida, I do invest in Florida. But I don't really I don't recommend, highly recommend it just because the taxes and the insurance on those properties and Louisiana is one as well, and it because those three markets actually have a sub par or a subsidized type of insurance by the state. So things are a little bit dicey with the insurance. And for this strategy, like at the state level, that's what I'm looking for lower land values, markets that we know that will have a mid to high depreciable basis and like higher medium home values, and then when we go down to the urban, I'm down or I'll go ahead.
Speaker 2:When you say higher, medium to high home values, what is that price range look like? Is that like 700,000 or 1.5 million in there?
Speaker 1:That's a good question. So we won't invest in properties that are greater than 700,000 because it's been challenging to see those numbers pencil out. They do pencil out and just be market, but less than 700,000. So far the portfolios meet up of 175 to 400 to 2000. We do have one that's in the works that's gonna be closer to the $600, $700,000 mark. So nothing to draw dropping. And that's another reason why I love short-term rentals.
Speaker 1:Because when it comes to modern luxury, it is not golden toilets and golden door Nobody wants that crap. It's not lifestyle of the rich and spainment, it's how you make people feel. It's how do you curate a space that is gonna speak to the modern luxury traveler. And they want I call it my threesies. They want these three things. Okay. They want convenient. They want communication. They want connection. Okay, convenience.
Speaker 1:Was it easy for them to communicate with you on whatever the platform was? Did you make things easy, like the modern luxury traveler wants. Easy? Was the check-in process easy? Was it easy to find the location because they had great instructions?
Speaker 1:Communication, again, that goes hand in hand. Did convey a tone that was appropriate for the purpose of their visit. Is it celebratory? Is it visiting a family due to illness in the area. Communication is important. Did you remember their name? Did reach out afterwards? Did you even remember the dog's name? Doesn't like sending an email and name, dropping the dog's name and they're coming back. And connection.
Speaker 1:Are they able to Stay in a space that you've curated where they can connect with one another? Is there enough dining seating? Is there an outdoor experience where they can connect with one another? Can they connect with nature? That's a thing they want to reconnect with nature and then they can connect with the local area. So is it a unique stay or is it just cookie cutter Everything? You've got that old Eiffel Tower decor that you got with a bargain bin and we're like in the middle of nowhere you taught. Are you allowing them to have an experience that cultivates their awareness for that, that local area?
Speaker 1:They want that and it could be a matter of having. We have dry goods that you can place into a crock pot or instant pot with the broth, and now you have a gumbo recipe for a local, popular recipe that they can feel like. They're getting that experience where they're living like a local. So that is what the modern luxury traveler wants. They want to live like a local. They want to connect and reconnect and they want that communication. So it really is how you make them feel and that's why I love it. It's when people think of luxury real estate millions and millions of dollars and yeah, that's true when you think of luxury real estate, but when it's luxury travel because, remember, we're a hospitality business you have some room, you have some leeway.
Speaker 2:Do you have any examples that you could share of places like town, similar to what you have invested in the past or might be considering?
Speaker 1:Yeah, let's say the greater Atlanta market, right? So we all know LN is definitely a hub for businesses. There are a lot of corporations that are there. There was a ton of growth. There's tech hubs, things like that. In Atlanta proper but outside of what's called the perimeter there are some areas where you have really great schools, for instance Alpharetta, georgia, patriot City, georgia, johns Creek area just really nice areas. That's out of the hustle and bustle but you can drive into the hustle and bustle within 30 minutes or so. Those are some areas that you want to look at. That's a little bit off the beacon path.
Speaker 2:I love it. Yeah, I'm not interested in some of these hubs, but maybe some nicer areas outside of that where there is some new companies coming in the area, some new demand. That's actually an area that I do want to talk about because I think that one of the main things that would scare people away from a strategy and a tactic like this is them not being sure of the demand or the renters, for, let's say, we want to average at least 15 grand a month or 20 grand a month on one of these properties. How can we test demand and how are you getting in touch with, let's say, the insurance policy holders? How do you get in with those companies to make sure that you'll have demand for your properties?
Speaker 1:Yeah, so a couple of things. So, when it comes to the short term rental, we have data is already out there. You can use a tool like Ergina and scrape that tool to do the research. Now, part of it is identifying which data comps aren't going to be the most accurate. So once I filter out the properties that aren't the most accurate, then I can lean into the ones that are, and so once you have that, you can then move forward and identify.
Speaker 1:Okay, so this market, the expected revenue, is going to be this amount per month and let me preffer this, matt, the numbers that I shared a little bit earlier the prices of those homes that have increased then. For we we know today, right, absolutely Just wanting to make sure that I put that out there. So that's one way to evaluate the data. The second thing is to understand the strategy, specifically the insurance policy holder strategy. So this is a strategy that I think, just because of what we are seeing with unpredictable weather anomalies, we just had a storm the other day here which we weren't expecting, right, so trees have fallen and now we're getting inquiries because roofs are being damaged. So if you want to talk about predictability, as long as there are weather anomalies, as long as water pipes are bursting and as long as fires are happening and trees are falling, you will have demand essentially.
Speaker 1:And the reason why I stick to the markets that I mentioned is that a matter of if it's going to happen. The reason why I stick to my buy boxes, because I'm looking for markets that will yield me the highest level of revenue versus markets that won't, because the revenue amount that will come in is based on the property values. So that's why I stick to my market, but it's going to happen everywhere. My only two exclusion criteria markets where I say it's not going to work are markets where we have extreme.
Speaker 1:It's an extreme rural market where there's one house per 100 acres, right, we're not going to have a lot of opportunities to serve this community. And number two, when there's a market where there's extreme seasonality, like all of the homes are second homes or vacation homes. So if something were to happen to that home, then that homeowner has their main property. So those are the two markets I say are exclusion criteria. Other than that, it's available everywhere. But at this point is how much can each market generate based on the median home values, the rebuild value, the land value the pre-showable. That's why I'm really intimate to high depreciable basis, because I want those homes that are going to cost a lot more to rebuild because my paycheck from the insurance company is a percentage of the rebuild value of that home. I've reversed, engineered it that way, wow.
Speaker 2:That is very interesting. I did not know that that's how they would calculate the value of what you would be able to get on that property. So that's really interesting. So for our listeners, if you can target those types of areas and obviously, if you are interested in learning from Rachel and working with Rachel, we will. At the end of the podcast we will have information on where you can reach out to Rachel. A question for you what is your business grossing right now across all your properties on a monthly basis?
Speaker 1:On a monthly basis. Let me think we just did last quarter's numbers.
Speaker 2:I want to say $350,000 to $500,000 a month. That's insane, that's nuts. That is a lot of money coming in. I mean, it's picking the right strategy, like you said earlier, roe, and when you said that, I thought you were talking about return on equity, but you were talking about return on energy. If you put your energy towards the things that are going to bring you the highest amount of revenue, that could result in possibly the highest amount of profit, which is creating an amazing life for you. So, if one of our listeners wants to use a strategy like this, what's the best way for a beginner to get started in this game?
Speaker 1:Yeah, I would say to shoot your shot. One of the things that I teach my members is some people are sitting on a property that they already have that they're using as a short-term rental or even a long-term rental. Why not list it on the platforms and position it as a midterm rental to see if you get any bites right? I would say start there, shoot your shot. But if you don't have a market or a property or anything at all and you say, okay, I have no property but I do want to get started, I actually recommend starting in your own backyard, assessing if investing in my own backyard of feasible play. I mentioned exclusion criteria as I read it. So if you're in that rural or seasonality, then no, it wouldn't be. So starting there and other buckets that I lead my members to is starting your own backyard or start with a property you're connected with. If that's not feasible, use a list.
Speaker 1:There are lists of the highest demand midterm rental market and what we're seeing now is the data supporting that there is a greater amount of demand for non-medical midterm rental properties than medical. So that pendulum is starting to swing and insurance policy holders is at the top of that list, believe it or not, which is really exciting. So those lists that share the highest midterm rental demand locations as well as the highest midterm rental inventory locations. Take a look at those. So my second recommendation is list.
Speaker 1:My third is working with midterm rental professionals on asking them, and those would be like realtors, lenders as well as property managers. So those individuals they work with, they have access, they know what's out there, what's working, and outside of that is your network. If you're part of midterm rental networks like ours, we see what leads are coming in and we're vetting those and we have a community where we're sharing leads, because once you're booked, you can't possibly take all these leads. So it's a different vibe. There's no competition. It really is a team sport, because we're typically booked at minimum for four months, all the way to 11 months, for the most part because it takes a while to rebuild the house that's impacted by a fire or severe water damage.
Speaker 2:And what is the name of your community?
Speaker 1:It's fun and your group. Yeah, sure, it's called midterm rental network, but the easiest way to get in touch is if you go to 75gemcom. 75gemscom, they'll connect with me and we'll get them into our free Facebook group where we talk about everything short term and midterm rentals 75gemscom.
Speaker 2:Make sure that you are visiting there. So what that question was. That was slightly what my final questions are, but I'm still actually just going to ask these two final questions for you. What is one actionable step our listeners should take today on their path towards financial freedom?
Speaker 1:That's a great one. I would say just take a self assessment and identify your goal and what that number is that will get you towards your goal. And that's when you realize maybe I don't need 100 doors. And don't get me wrong, I'm like every other girl. When I hear someone with 100 doors, I get my spidey scents is up, I get that jelly, I get jelly right, oh, 100 doors. But then you realize, well, how much is that really going to take in terms of effort and all of that? What are your goals? And then I was almost a reverse engineer how do I get there, using a variety of strategies and what's going to be an alignment with me in my life going forward? Can I see myself doing this 10 years from now? So I would just start there.
Speaker 2:Love it, know what your goals are and make sure that you build backwards upon them. What are the steps to get there? Let me start taking those steps and see where those steps get me, and then we could reorganize and retarget when we start taking those steps. But the first thing is to know what the next best step to take is and go take that step. And if you're looking to get into a property like this, one of the next best steps that you could get is told and taught to you by someone like yourself. So if you guys are looking to learn more, I would definitely go to 75 Jumps. The last question that we've got for today what is one question that you wish I would have asked or one topic that you wish I would have covered, and how would you have expanded on that topic or answered that question?
Speaker 1:I think regulations, I think potentially regulations, because I know that's something that's impacting a lot of people right now who are in the short-term rental space and they're looking at the news.
Speaker 1:Right, the news is very alarmist when it comes to bus and regulations and all of that, but I got to tell you all of that hoopla that I see on the news in terms of the viral tweet of how everything declining we're not really seeing it in our portfolio, because we're really attentive and we're really in tune with not only our numbers, also our competitors and what they're doing which is great because all of that stuff is pretty much open source but also with regulatory legislative bodies as well, and so, for those of you who are wondering about regulations or impacted by regulations, just know it's still figure out a bowl and midterm rentals has been something that a lot of our community has transitioned to in order to mitigate the risk of regulation. So it's not only an optional thing that I recommend, but I think it's imperative that we understand how to operate with different types of exit strategies when we are investing in real estate, because everything is a goal. I was excited to see that Austin on Friday overturned.
Speaker 2:All that.
Speaker 1:Yeah, the short-term rental ban. Things are always happening, but at the same time, I think it's important to find out what those regulations are. If you don't know how to find your regulations, you can just Google short-term rental regulations of your city or your county, or you can Google short-term rental ordinance of your city or your county and then you would call your county clerk's office to get validation. You want to see it in red and you want to understand where, within your market, you can operate. Because I'm not afraid of regulation.
Speaker 1:I actually like regulations. I'm really one of those by the rules girls when it comes to that Bill. Once they tell me where you can't operate, then the world is my oyster. I love to go to unincorporated areas to get the good deals. It's part of my strategy as well. So people are afraid of regulations, but I think it's an opportunity for those who are willing to do the work, get the permits, take the steps and you've essentially created for yourself a blue ocean where people are like oh, there are regulations, I'm out, that's the default. Regulations are really important, I think. Number one they can be used in our favor if they are fair regulations. But outside of that, having a midterm rental strategy at least two of them in your back pocket is a worthy task to explore.
Speaker 2:I love that and to be able to see that there are regulations that's going to push a lot of investors out of that area and to know that you can figure out a way to navigate through each problem and regulation. That's where the dollars are really made and that seems to be what you have done very well at Rachel. Appreciate the time so much today. I know we mentioned it already, but where can my listeners and watchers find you best online?
Speaker 1:I'm at short-term gems, that's the brand, so you can find me on Instagram at shorttermgems, but grab your free list at 75gemscom.
Speaker 2:That's 75gemscom 75 gems and short-term gems on Instagram, so make sure that you give Rachel a following from the Financial Freedom Fast Podcast. I'm your host, Matt Amobile, and today we had on Dr Rachel Gainsborough and we are signing off. Thank you so much, Rachel.
Speaker 3:Thanks for listening to the Financial Freedom Fast Podcast, the show that teaches you to buy back your time and live life on your terms. Be sure to subscribe to this podcast wherever you're listening, and follow us online at Matt Amobile. It's Matt AMA B I L E. Be sure to tune in Monday, Wednesday and Friday for our weekly podcast drops. Thanks for listening. Let's retire together.