| by Kenneth Chase | 10 comments

Renovating an Apartment for Airbnb! (Chicago)


what I’m saying is that is there a
community that you’re serving that does want to be here either for the McCormick
Center yeah business we’re trying to town or for its if it’s from literally
there’s an active filming in Lincoln Park yeah and go out to like the college
bars that I’m not gonna be happy here no no right because it’s too far but really
nice thing is that we are close to public like the red line we have our own
red line here which is really convenient but are people who specifically choose
us to come here is business from McCormick or price point we are a very
very extremely competitive as far as the rest of the city is concerned what about
like the Chinese community like I wouldn’t like traveling in yeah yeah
there’s some there are some that that are I can see that they basically only
they have tons and tons of guests from China coming out all the time I would
experiment with on your listing you know having now seen it seen sort of where
you live trying to appeal to that say like what I don’t know if you speak
Mandarin or anything I speak Cantonese Cantonese whatever just like say a great
place for you know people traveling from blah blah blah speak Cantonese you’re in
the community you talk about like some of the restaurants I don’t think it’s
gonna turn off people that would stay here for business but you might become
like sort of a great go-to place and my guess is in those
there’s probably a lot of like word about like yeah if I came to say to your
place with Charles I’m not going to do word of mouth about any only you got to
come to chuck you know yeah I just don’t really give recommendations it’s my
network is kind of small but like if somebody comes and they have a great
place in the culture with the language and it’s like in their environment maybe
like when they get back home you’re like yeah go here the name of the game is to
have the occupancy right and then you raise prices until you start to lose
occupancy so whether it’s filled with like people visiting from China or Hong
Kong or people going into McCormick thing if you’re fully booked and you
just keep raising prices and the beautiful thing about raising prices is
it’s all profit yeah right it’s all profit yeah cuz your costs haven’t gone
up at all uh-huh yeah and that’s a very rare thing yeah most other businesses if
you would at your restaurant and you want to sell more you need to buy more
supplies some more napkins more dishwashers more feed here it’s like
where you had a hundred dollars tonight okay we just raised prices to 120 that’s
$20 more your bottom line yeah and then the other thing and one of
the things that we’re going to talk about a lot more as we go into the
membership is expense management people don’t really understand that I’ve said
this to Charles it’s hard to to say it like publicly when you’re just speaking
to thousands of people that you don’t know but there’s an element of wanting
to be the best host and providing the best hospitality yeah we were just
talking okay and you need to do that right later I’m not saying not to but
you don’t need to go out and go overboard have all of this and this and
this and this and I give I make eggs and I have oh yeah an espresso with this and
the other bubble coz okay well you know what if you do this John lower
yeah yeah yes yeah sometimes we’ve actually talked about that too like we
like to give like a bottle of wine or just something just really just has it
that the extra like I think you were talking about like there’s there’s
there’s like just good at the satisfactory this line and you want a
little bit above that is actually is actually is actually super nice is where
you want to be moment put them I think they listed it a couple times and it
never was sold and when I came in like I can tell why it was probably ever told
soul because it was just it needed it needed some get some love and what
actually also helped us get it at a really nice prices that we found out
that the owners actually didn’t even live in Chicago anymore so like they
just they knew we knew that they just wanted to get rid of it so oh yeah so
this is we always like the subway tile sort of luck encounter we’re kind of
we’re gonna go for like the more like the industrial industrial little modern
like the Chelsea so everyone loves that sort of sort of looking we’re doing some
things that we would have never done if we would live here like here this used
to be a closet so we’re actually making the opening wider and taller to fit a
queen a hideaway Murphy bed so he is a lot of things that we notice is that we
can comfort our own current place we actually people have have stayed with us
with that I have eight people right and we have two twin arrow beds yeah
absolutely yeah and so that’s actually no one’s
ever complained everything and the eventually said like thank you for
actually having seven to eight people like we can do it would be nice please a
lot of times big families we travel in our my our Senate families ten people
they they do that all the time which is very convenient so one of the things I
wanted people to actually sleep on a real bed and I think they’ll be a really
big plus so that’s what I wanted it to create and something that hides away and
when we have doors they were covered no one would even know that it was there
one this bathroom right here it was crazy they literally gutted everything
this used to be a closet over here and we wanted to actually just change it out
come completely to a walk in a walk-in shower
to make it more modern a little cooler looking so they’re doing they’re about
to do that yeah a little sliding partner doors to the safe space this is the
largest room out of all of them this is probably going to fit to two twins
probably one here and over there lighting originally there was track
lighting like what you see in our current it’s almost exact same mixing
the mirrored image they used to be tackling but we got rid of that and I
think we’re just gonna do some we’re gonna play all the actually sealed up
the whole if I gonna do something along lines of either desk lighting that is
controlled by a switch or or we’re gonna put another ceiling light that looks
better because I’ve been the old one looks really really super outdated they
are painting all like the doors but chances are we’re probably gonna have
like an open open closet maybe and we might even do something with the closets
like maybe half and half just because we’ve noticed that no one’s ever used
the closets for anything so we might use it like more for something different
that’s more useful I’m not quite sure yet I think you’re gonna kill it yeah so
hopefully you get a mortgage through the local bank here no this one we actually
we paid it out up up front completely yeah so that’s and then we’re about to
we’re in the yeah we’re about to set up these one of things that we haven’t done
yet is we’re about to set up our business entity and then also setting up
like getting everything ready for like business and taxes and concerns were
about before we were just doing as this individual now we wanted like actually
for all like tax benefits a purposes we want to make sure that now with the
create create everything proper for the future for future growth oh yeah doing a
lot of researching on that prior to when you made that video and I wanted yeah I
wanted to actually either take out a mortgage and do this for a like the
other property or probably the maybe the one in the next door or or take it using
a taking a HELOC and and just paying that one out as soon as possible so that
everything will just be you just be sure pure profit cool well
listen i think that’s looking fantastic I think you guys gonna have a really
really great business opportunity there and I love the way that you’re already
thinking about like expanding next door if and when that neighbors thinking
about selling monetize that make as much money as he possibly can and as we were
talking about inside if that unit comes up for sale before you have enough money
saved since you don’t have a mortgage down on that just take a home equity
line of credit out or even just a mortgage and start to use that money to
to buy that place and renovate it and then you’ll have three in this immediate
compound which is just unbelievable and now you can start to service people that
are either like extended families or you know maybe small business you know
outings that are going to McCormick if there’s a team of people I’m so inspired
and appreciative of you guys having us here and showing us what you’re up to
it’s really cool and it’s gonna be a great foundation for your next endeavor
and I love the way you’re always thinking and entrepreneurial and growing
and taking risks and embracing it Bravo good for you

10 Comments

Mo

Feb 2, 2018, 5:43 pm Reply

Incredible video! This is so motivational!!

Jonathan Domingo

Feb 2, 2018, 10:10 pm Reply

Love it!

Nelda Esmeralda

Feb 2, 2018, 4:48 am Reply

I've seen Milo's and Chandra's posts of FB, fun to see them on this video, happy to see young folks so inspired and go getters!

Rick Simon

Feb 2, 2018, 12:55 am Reply

One item that was mentioned briefly in the video was setting up a business to do AirBnB. I am a new host, and I want to host under one business entity for a property in the US, and some rooms in my home under another business entity in Canada. Can I do that using my (single) airbnb account? I understand I can only have one airbnb account.

Kai Maxfield

Feb 2, 2018, 6:36 am Reply

Lighting is huge. It's really bad when the lighting is inadequate. It's a big deal.

Ron Hendrick

Feb 2, 2018, 5:47 am Reply

Congratulations MiLo and Chandra. You are great examples of Entrepreneurs. Best wishes for a hugely profitable year.

Michele Logan

May 5, 2018, 3:25 am Reply

You are AMAZING! I am so glad that I found this channel. I have a townhouse 5 min from a major hospital and I am thinking about renting out the second bedroom which has a private bath to traveling nursers or doctors for long term stay.

fighterflight

Jul 7, 2018, 6:33 am Reply

This is great I’d love to see more about the numbers next time i.e. expenses – property, reno, etc. – and how they made it work.

Wayward Woodworker

Sep 9, 2018, 6:22 pm Reply

I feel a little more inspired and my confidence grows each time I watch one of your videos Richard. Thanks for doing this. Just putting together my shopping list for a new STR in a basement suite I have coming vacant in one of my long term rentals. Kind of nervous but excited at the possibilities. Cheers man! Oh and congrats to those two young people… bright futures ahead.

AbbeyLineForTheExit

Jan 1, 2019, 11:55 am Reply

Lol did he take out like all the closet storage? I love the video though.

Jesse

Mar 3, 2019, 11:13 pm Reply

Congratulations MiLo and Chandra sounds & looks exciting.

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