Sarah: Welcome everybody. We are going to be talking about everything to do with BRRRR today that we can talk about in the next 30 to 35 minutes. I'm just checking on the chat. A few of you have done some, Chuck is a prior student of mine has done four, congratulations, Robin with three. Some people are in the middle of doing something that is very awesome. Jamie has two. Definitely my favorite strategy.
Just keep in mind, feel free to tag me on Instagram. But no filming. Otherwise, we are recording this and there will be a link that you can go to afterwards for those of you that want to watch it again. This is our disclaimer, I'm going to go ahead and share my screen. I will introduce myself and we will go from there, but I'm excited to see everybody today. We're not missing good weather where it is raining. I'm going to go ahead, share my screen and we will start.
The BRRRR strategy really is how I became free of my nine to five jobs. Many of you might know that in October of 2020. I left the nine to five and I definitely left on really good terms cause you never want to burn any bridges. I gave them a six months notice and it was the best decision I have ever made.
This is actually where I was on the dock when I made the decision to leave my nine to five. Wasn't this picture per se, but I was sitting on those chairs. I was deciding, and I was realizing how nice it was to actually have this freedom. This was actually in the summer of 2020 when the pandemic forced us to stop and to take a breath and to slow down. I actually needed that because I was going like a hundred miles an hour before the pandemic, just doing so much and seeing us to everything.
It was on this dock that I said, you know what? Let's figure out if I have enough to be able to live comfortably without having to work 9 to 5. That's exactly what happened there. Just as a disclaimer, guys. I'm a real estate investor. I'm not a mortgage broker or a realtor or any of that stuff. Please do your own diligence and get your own specific one-on-one feedback from those professionals before doing anything.
A little bit about me as you guys know. One of the four co-founders of The REITE Club. I also host The REITE Club podcast, but my own called, "Where should I Invest?". And recently I started filming and producing everyday investors with a rev tour, which airs on CHCH. But those are all fun things. I enjoy doing the podcast, I enjoy filming. But ultimately, how I created it. I was using the BRRRR strategy. Didn't always do the BRRRR strategy.
When I first started, it was the buy and hold. Now, I'm doing some development and some resort builds and stuff like that. But ultimately the BRRRR strategy is what really helped me get out of the nine to five game. I focused on both cash flow and along the way I have never really been the one to buy pre-construction and assign not that there's anything wrong with that, but this was really the strategy that helped me look at both cash flow and equity at the same time.
I'm going to go through these really quickly, cause I know some of you haven't done this yet. And just keep in mind. I do have a very thorough course that I know some of you on this call have taken. It's like 26 lessons and we go into this in a lot of detail, but essentially these are the steps for those of you that are fairly new to it. The BRRRR strategy really is a combination of flipping and being a landlord as a buy and hold investor.
When you combine those two, you get what's called the BRRRR strategy, Buy, Renovate, Rent, Refinance, Repeat. To me it is the best of both worlds. Every strategy has its pros and cons. Of course, this one has some cons as well. But I think overall it has a majority of pros. Some of the pros, obviously it's quick cash long-term wealth creation, all in.
If you're flipping, you've got to find another deal to flip in order to keep making that money. But with the BRRRR strategy, as an example, you can hold onto it. You can make that cash flow and you're creating the mortgage paid on appreciation equity as well. And you can hold on for the longest. You can get higher runs so you can get a better tenant profile because these units are usually renovated.
You can recycle your money into the next tax deferred deal. I don't like paying taxes more than I need to and being able to do these refinances allow you to recycle your cash so you don't have to be working and only using your employment income to be able to fund these.
You can actually do it through the refinances, which is amazing. Again, if you make some mistakes, it's definitely more forgiving because you realize the actual mistake because you're not selling it. You hold onto it real estate and mortgage pay down over time and appreciation over time can make a $20,000 mistake seem like a no-brainer down the road.
I've made many of those when I first started the no tax piece was a great pro. After the refi, again, you can have some great tenants that you can pick yourself and you can hold onto it for the long term. Wealth is really created by being in the market for a long period of time. Not doing quick cash for a year or two. This is a slow game. It's going to help you become wealthy for sure. But it's not going to be in a year or two.
There is going to be a little bit more time needed. Of course, like every strategy, there are some risks and there are some downsides. It's obviously more time consuming than many other strategies. If you don't like to be as active, this might not be for you. You can joint venture or partner with somebody to do the active stuff. But it is more time consuming. There are some risks. You could risk having a low appraisal. There might be some market shifts.
We don't know what's happening right now. Of course, we've got the factor that the piece in refinancing terms could change over time. Those are potential risks and you're still babysitting trades, your contractors and they're still tenants. If you don't like any of that stuff again, this might not be the strategy for you. But when I look at all of the pros and I look at the cons to me, this makes sense.
Here's the thing, as many of you have probably heard me speak many times on this and if not. I would say to get really good fundamentals it's going to take you. If I look at my 26 lessons, these were 60 to 90 minutes each. That's how long it's going to take to really absorb this entire strategy.
I wanted to come up with some of the keys. Some of the tips for each of the strategies for 2022, what's working today. I'll tell you when I first started doing this strategy the stuff that I was doing back then worked back then it doesn't work as well today. This is why it's important to pivot. You want to shift, you want to pivot if you stay stagnant and you're always expecting to do the same types of deals. It doesn't make sense as the market prices change and all of that stuff, you've got to adapt and you've got to grow and you can still do that really well with a strategy.
I'll give you an example, the single family BRRRRs, just taking a house that's in rough shape and fixing it up and hoping to cash flow. It probably won't exist at this point, unless they're going really far outside of any major area. You're really likely doing some conversions at this point. When doing the BRRRR strategy, remember it stands for Buy, Renovate, Rent, Refinance, Repeat.
Where to look. I partnered with a couple people recently just to scale up and we've just bought our fifth deal yesterday in the last six weeks and many of those were single families and we're converting into three or four units. One was actually 15,000 square feet of commercial space that we are converting into 22 residential units and some stuff in between some really cool things, and those were actually all on MLS. Everything was on MLS, even that $15,000 or that 15,000 square foot deal.
I'll tell you it was listed for a dollar on the MLS and we bought it for just under two. It's going to cost about a middle of the bill and have to do the renovations of 22 units. It's completely empty. It's really cool. The after repair appraisal, cause we've got Colliers and appraisal company to do the appraisal and they came in at 5.8 million. That's still fairly conservative.
Our mortgage broker thinks that we're probably going to get somewhere between six and seven again on MLS. In a lot of other deals. We're also in the MLS. I picked one up yesterday with a vendor take back, 75%, VTB at 8.5%. The house has gutted completely inside. There's a slow market shift right now that I think the savvy investors can start taking advantage of. And so we're going to close privately on the one that we just bought yesterday because it is completely gutted, so no lender is going to lend that, but we're going to be able to lend that with an A lender.
Aside from MLS you can talk to your realtor. They might have pocket listings, Facebook marketplace, Kijiji. There's a lot of wholesalers out there. Make sure that you are on their lists so that you can get their deals as they come through. Again, not every single deal. The wholesaler brings you a good deal. You do have to do your due diligence and know your market listing agent. I've bought some deals, especially land through listing agents directly by phoning the ones that have a lot of properties in those areas and just seeing what else they have on the market.
I've gotten some really cool deals that way. You can check expired listings again. Your realtor might not be able to, but maybe we can send you what has expired and you can contact them yourself, off-market through your own marketing again like putting together your own flyers and picking a ups or Canada post route rather, and having them delivered that's how wholesalers do like their stuff.
That's how they get leads is through SEO online, but also through these. You can do that yourself as well. Geowarehouse, purview, you could do drive-bys, your realtors have access to something called geowarehouse where they can actually tell you who owns the property. Purview is what your mortgage brokers have access to. Those could be the tools for you.
Property managers, management companies, I've recently had my paralegal reach out to me and say, hey, there's a few people selling their portfolios. Are you interested? And we looked at the deals, these are larger multis. But they are quite interesting. Look at all the different avenues where you can find a deal. It's interesting because now as the rates have started going up, things can make more sense on the MLS because there are no 20 offers as there used to be back in February. It's actually softened. It's actually a good thing for many investors. You just have to Know what you are looking for. You have to run your numbers, conservative.
Paul: Sarah, there was a quick question. Could you please explain again how you buy under contract?
Sarah: How you buy under contract. It's just an agreement of purchase and sale. You basically, for example, make an offer and it could be conditional on something. Like the one offer we got yesterday is conditional on zoning verification. They actually ended up doing a vendor take-back for a 75% loan to value that. In terms of the tips for buying, just think of your after repair value. I find a lot of new investors. Sometimes they see this house that's listed for $299,000 or $399,000 or super cheap.
Maybe it's worth a lot more on the market and they think, oh this person doesn't want a whole lot. We're going to give them 50 grand more. But maybe that house is worth $650,000 and then they're shocked that house went for $650,000. There's a lot of little tactics sometimes at the sellers. And the sellers realtors play doesn't mean that they only want that price for the house. What is important though, rather than figuring out what you're going to purchase for is actually working your way backwards. Figure out what the after repair value is going to be.
If you are brand new, having a good realtor that has a lot of investors that they've worked with that are investors themselves likely will. They will have a pulse on what the after repair values are coming in. What the appraisers are actually appraising for these properties or better yet, building a relationship with a local appraiser is so easy when we can say, hey, do you think that we can get this as an ARV for this property? This is how many square feet, yes, no, arrangement that is super helpful because then you can work backwards.
Once we figure out what the renovation costs and then we can figure out what the purchase price is going to be. We're not having to focus on trying to get the best price, but we're going to give the best price for us based on what we want to do. Rate increases, keep in mind, it's going to allow us for more opportunities for the savvy investors. However, here's the thing you will want to stress test your portfolio. You will want to stress that. The rates as well.
I usually now pick a higher rate on the refinance. They still want to make sure I cashflow on the exit. This is not as simple as just like buying a house and then figuring out how much rent you need to get. And that's it, there's a whole process behind it. I do have a BRRRR calculator that is part of the course that my students put that stuff through so they can actually see on the refi, on the exit is their cash flow.
They can play around with the rate as well, just to see how high the rate can be until they have no more cashflow or if it can be 4% or 5% and they're still cash flow. That's a good thing. Not saying that the rates are gonna go up that high, but this is a time to be conservative for sure. Don't do anything. Don't sit on the sidelines forever. Just be conservative in the numbers.
This is one of the pages of the BRRRR calculator. When I look at properties, I want to know when my total costs are going to be before the refi. That BRRRR calculator helps you do that. It helps you understand how much the cash flow is going to be after the refi, because a lot of calculators that are out there, they just look at the cash flow before the refi. They don't factor in that new higher mortgage.
I want to make sure that my capital that I get back is going to be all of my rentals, all of my holding costs and also at least a half of my down payment. I want to be all in 10% or less of my original money. Conservatively less is better. All out is even better, but let's be realistic. 10% will give you amazing returns on your investments as you'll see in the calculator for those of you that have it. Aside from that in terms of the buy process, some clauses that I like to add in my offers, I like to add an assignment clause again, because I may put it in a corporation and then put it in my own name.
I don't necessarily know I might have a new corporation, but I do the assignment clause that gives you an out. Want to bring in a JV. It gives you an out that way as well. I like to add a clause in my agreement of purchase and sale for being able to start any permits and drawings before the clause don't wait until you have the house to start doing the drawings and permits. They can take weeks, they can take a few months, they can take a couple months.
If you can use the time while you're waiting for the house to close from the time that you've removed your conditions then you know, at least that it was time while use, get your BCIN designer in there. Start doing the permit, start going to the city and getting that process started. I also asked for four more. Also the contractors and all that good stuff, definitely asks for more than two. I know the standard is two more visits before the clause.
Try to get more because you're going to need those visits for that. Sometimes I add a due diligence clause, depending on how many other offers there are. Some fundamentals to consider. We go through tons of this in a lot more detail, but essentially this is a screenshot of the things that I look for.
If I'm looking at a specific area or a new area, I want to make sure that the area in the good times and in the different market cycles as things go up and things go down that it meets the fundamentals so that I can have that holding power. I'm not going to lose 50% in the market. I could, if the market goes down because I can tell you there's gonna be some markets as the market starts shifting slowly. They're going to be so much better than others.
This is important to be able to be in that right market and if that happens and it might not be that bad, but this is where you're going to be able to have that steam. That's for buy, again, tons and tons of hours were put towards the whole process then doing the analysis and all that stuff, but for the sake of time today. I'm going to go through the renovation piece.
The biggest mistake I see a lot of people make is that they over renovate with what they want themselves. Keep it simple. Keep it tenant proof. Things that will last, that will look good and renovate the area to get the highest after repair value. Don't overdo it and the highest rent and that's it. Sometimes that's like final plank flooring, great flooring no need to do bamboo flooring, unless you're going to sell it.
You're flipping in a downtown Oakville type of market, different store. But for the BRRRR strategy you want to renovate to rent where you're going to make the best return on your investment, especially in today's time today. Next year you are going to want to add additional units. Gone are the days where you can just do these on single families. They don't have cash flow anymore. You're going to need to look at even two units in some markets that don't even work anymore. They're going to need to look at three and four units potentially more.
There's a great opportunity right now. I don't think everybody's seen it yet. I don't think people are looking at it yet. This is where you have to sometimes go against the grain and play in a different state. My different sandbox development and the resort piece, but it also now is the commercial to residential conversions.
There's a ton of opportunity in some of these markets with old storefronts. I haven't been alive and haven't had anyone there for a long time or they've gotten lower end Texas shops and the city wants to revitalize those areas, doing some of these conversions, taking the commercial units into residential is actually something that we have started doing. The return is amazing because you can take some of these and actually one commercial, depending on how big it is, could be two residential units could be three residential units.
You don't have tenants, you can reset your own rents. They're brand new rents not subject to rent control, lots of great stuff. If you're going into the recreational stuff, some cottages, the three seasons to force and can be a great value add as well. For those of you that don't know when you're investing in Ontario, for example, it helps you have three units on one lot. Again, there's going to be some things to consider in between.
The more units you have, the better are going to do for cash flow in the majority of cases and with the better your return on your investment is going to be. Some key insights. Your BCIN designer is going to be a key part of your team. Start this process. As I mentioned before closing, finding an investor focused contractors, a contractor or trades, if you're going to do a smaller project but do that before you close, start looking for your contractors.
As soon as you remove your conditions, if not sooner, that's even better. That they can be ready for the day after you close, rather than waste time. Builder's insurance obviously gets a good insurance broker. If you're renovating and you're doing large renos, you're likely going to need different insurance.
Then your typical landlord insurance that you do want to make sure you have that set up properly, because if something happens and you don't have the right. Essentially there's no payout check zoning, parking requirements, all that good stuff. If you don't know how to do that, hire the right BCIN designer to do that.
I recently partnered with wise construction and legal second suites. We are doing a lot of deals together actually. But Ken from King Homes and Legal Second Suites is the BCIN designer. And then why construction has 30 staff in-house like trades and all that stuff. He's the contractor that seems for me to partner with those two guys the best thing, but separately, they also have their own businesses. If you want to reach out to them, they are great to work with too.
In terms of rents, from a rent consideration especially in areas that are very tenant friendly and not so much landlord friendly. You do want to do a really thorough screening process. The course does go through five steps, but just real quick, what they are essentially, you're going to be doing the advertising and they're screening out processes.
There's questions you want to ask. You're going to do a phone interview, then you're gonna actually do the walkthrough. You're going to go through the application and usually at the end, I'll do an interview as well. There's you don't want to just give the keys to the first person that has first and last, because to get them out in an area like Ontario, for example, It's very hard, you're probably looking at 8 to 10 months for the landlord and board based on the RTA and the board is so far behind, that's likely going to be your timeline.
Screening tenants is super important. One of the things I started doing in 2022. I started doing this probably since 2018, but I think moving forward it makes so much more sense is the mid term rentals. I am doing a course on midterm rentals and short term rentals in the fall that Paul can put the link to if you guys are interested, but essentially. I love playing in different sandboxes and it's still untapped.
People are thinking like short term, like two, three days, or they're thinking long-term, you're stuck with the residential tenancies act and all the rules and regulations, but that midterm is not so much. Internship on my paralegal sent me this case law December, 2020 that had gone to the board and the board ruled actually in favor of the landlord saying that, because it was booked on a site like VRBO or Airbnb with this case law, it is considered commercial and not part of the RTA.
This whole 28 days, or more or less or whatever, and you're stuck with a tenant, don't worry about it. It's actually been ruled that it is commercial, not part of the RTA, which then allowed me to take some of my nice ones and actually turn those into midterm rentals, which are essentially 30 days to six months at a time.
I have a lot of tenants that come they're homeowners. They're in the middle of their own constructions in their houses. You can't do this everywhere. But if you have some units in some really good areas where there's a lot of homeowners around, this could be a great opportunity to make more cash flow and have more control at the same time.
Refinancing considerations, this is where you saw the break with a bottle of champagne. Hopefully, this is where your money comes back out. Here's just some tips to go through this, but this is a whole process. The financing and the refinancing on these, you do have to plan in advance because if you are in the wrong type of loan, it's going to be very hard. You might be paying a lot of fees if you have the wrong lender or the wrong type.
You want to work with the same mortgage broker, ideally for that same property on the purchase and on the exits. When I say exit on the refinance, I definitely plan to have the after repair value before I go variable rates all the time for these, just because again, there's no fees to break them and I have more control. A cash out or HELOC refi, you can refinance in different ways. There's pros and cons to both. You just have to weigh them. I do have a class that talks about that as well.
I'll tell you ultimately, getting familiar with the appraisers in your area, which ones are more generous than others, depending on which lender you are going with. They have a list of appraisers and ideally, talk to other investors that are in that area to have worked with them in the past or with certain companies so that you can figure out which ones you want to specifically ask for your mortgage broker to work with. That helps because it takes a lot of the uncertainty.
The repeat stage is, where you're starting to build a portfolio. You're recycling your money. You're purchasing more. This is where you really need to solidify your team. Your team today may not be your team tomorrow. Sometimes there's weekly or links that you have to replace. You need a good lawyer. You need a good mortgage broker. You need a good insurance agent et cetera. If you're going into a different market, you likely will have some local team members that you need as well.
I have a whole list of team members that you're gonna need to have definitely a team, a solid team is going to be a huge key to your success. Use the stage to build systems, focus on delegation. You don't want to be leaving a nine to five job just to be able to have another nine to five job or a 12 to 12 job. However, you want to say by creating chaos. You do want to build good systems. You want to also delegate and this is the situation now where you start thinking, okay, are you going to be doing corporations? Are you going to keep your stuff in your own name? Do you want to bring joint venture partners?
It doesn't always have to be the 50-50 piece. You could bring somebody in just to hold a mortgage for 20%, as an example, like there's so many ways that you can structure these. This is where you want to work on the business, not in the business. I think we are almost up for time and I'm going to pause, I'm going to ask some questions. I have asked The REITE Club to provide you guys a link. The club is going to have a special link for a large discount on the course. In addition, I'm going to be offering three live calls that we're going to do. If you sign up for the course, go through in the summer September, October, November.
We are going to be doing live zoom calls and we're going to be updating you on with the latest information on the class or the BRRRR strategy. If you have already taken this course and you are looking for just more one-on-one I have one more VIP spot available where we do one-on-one conversations, calls, field days, all of that good stuff as well. Lastly, I wanted to mention that I am working on building out a five-year plan, but phase one will be completed this summer.
In total, it's going to be nine cottages and a main house we're gonna have this infinity pool overlooking the beach. It's going to be amazing. Five-year project, but year one, phase one, essentially, we're going to do three cottages. Next, we're going to do three more and so forth until we get to about nine. It is going to be adults only super nice upscale. Each cottage will have its theme and there's lots of fun, some passion projects and stuff going on around that, but we are going to be offering retreats to investors, entrepreneurs.
Guys on the line, to come out for three days. There were going to be lots of learning education activities. We've got great speakers, Robbie Clark being one of them, even Donald, myself, Harry James, we're going to be offering some workshops. We have a pontoon boat we've rented. We have my chef from my cottage, amazing food. He's going to be doing all the catering. Ordered a bartending company to do all of the drinks, unlimited alcohol. Everything's going to be on the resorts for this retreat. And then we actually booked a private room for everybody that wants to join at a nearby hotel.
We're gonna actually be transporting people onto the resort from the hotel, just because obviously the resort won't be completely built. It'll have the three cottages but it is going to be a ton of fun. It is all inclusive and Paul can add that link as well. If you guys are interested in that, I'm going to stop there and I'm going to open it up for Q and A.
We talked about buying under contracts. My calculator is available on my website. If somebody just wants the calculator there is a small charge for it just because it took me hours and hours to put it together. If you guys are interested in just the calculator, we can do that. Casey asked, does the current homeowner have to be involved with the permits as their current legal homeowners? No, as long as they've given you the green light on the contract, that you can go ahead and do that on the behalf while you're waiting for the property to be closed.
Russell, have you been able to submit for a building permit before you close on the property? I think that's similar. Just get your BCIN designer to do the legwork and then they can actually go and submit to the city on your behalf. I'm a big delegator. As you guys know, I don't want to be doing all of the work involving working in the business myself. I find people that are experienced in whatever it is that I want to hire out and hire them to do.
Eren, how are you able to secure financing on new properties without traditional employment income? There's lots of options. If you think about the big banks, like the T4 income, however there's trust companies, there's credit unions, there's private lenders. There's actually commercial financing. I think this Friday podcast, where we actually talked about this on my "where should I invest" podcast is coming out. Many people don't know this, but you can finance two units, three units, four units actually, commercially as well.
As long as the property qualifies itself, there's a certain debt coverage ratio that it needs. You don't need that from it. Even from an Airbnb short term rental perspective, you can get two years of that and then you can actually have a commercial mortgage. There's many things I would just say, work with a mortgage broker. You were not stopped completely from being able to do it. You might want to do some commercial stuff. You can buy commercial five plus as well, or a two unit, if it makes sense, you can do that commercially, and you can bring in a joint venture partner, like there's so many things that you can do.
Don't worry about not having employment income just to work. Worry about having the right mortgage broker to be able to help. How do you define mid term rentals? I would just say, for me 30 days ultimately it could be up to six months. It could be up to nine months. There's a start and there's a finish to it. It is what I define it and most of them will rent through Airbnb. I do have Ryan Carson do a occupancy agreement, but I do the Airbnb million dollar liability insurance. I like their whole deposit thing and how if somebody trashes the place where it comes to worse. That doesn't really happen very often, but you can actually get Airbnb to pay it out, which is awesome.
I get a lot of people to just even book through there, even if they find me in other methods. Do you have to use places like Airbnb to do midterm rentals? You don't have to. Many ways that you can do it as you can talk to your contractors, your insurance brokers, your realtors. They likely have clients that need a place that's longer than just a couple of days. Maybe they have a month or two before closing. Maybe your insurance broker knows people that have flood or fire, and they have to leave their house for a certain amount of time.
There are tons of options. Colleagues at work like where Matt used to work. He's actually off for a year, which is really exciting and hopefully longer. But people were renovating their house and they asked him, and then at that point in time, you can decide if you know them. You can do an occupancy agreement or you just send them through to Airbnb and book from there. But there's lots of places. Like in the beginning, I also had a company reach out to me and they had executives. They rented the entire place.
As an example in Burlington, I have two units, but they rented everything. They just sent their executives there and they were there for six months, nine months. I can't remember, but throughout the pandemic, it was great. When will you do the short term and mid term rental? That program is coming out in the fall. Paul, we'll just make sure that you guys have access to that link. We've got the links or do you have a specific area where you do your BRRRRs and do you use the same property management for several properties in the same area?
For BRRRRs, you can do them wherever. The five that we bought and then the last six weeks are Hamilton and Welland, doesn't mean that you can't make them work in other areas. You just have to run the numbers. You have to understand what the after repair value is, how many units you need to make it work. That's where I do them. I do a lot of my development stuff. I would probably do some BRRRRs there as well. In terms of managing, I actually have self-managed most of them right now. If something does happen and just send my plumber and have a process that way, at some point I might take the portfolio and completely pass it off.
At this point I'm still self managing. And then with some of the bigger stuff we actually have one of the partners has in-house property management. Martin, I have six units in Leamington which are decent, but not great. I was wondering what potential medium term rentals would have in that area? Yeah, like I would test it out real quick, airdna.co is a good site, at least to see the occupancy levels and to be able to see what the rates per night is that you might get. If it's not a great area and you're mostly going to have tenants, I don't know if I would want tenants in my mid term rentals.
That's just me. Prior tenants, for example, cause you don't know if they've been evicted and this is like their way out. I'd rather have homeowners or people that are like going through an insurance claim or something along those lines just because I don't want to say anything I'm getting in trouble with, but that's usually my tenant profile for the midterm. But we are going to go, there's actually seven steps in the midterm rental analysis that I will be doing on that in that class, in the fall.
The Airbnb course, it's not Airbnb per se. It's going to be short term and mid term rentals. I think many people are not even looking at midterm rentals. Rob great question, that will be the course. It will be short term and mid term rentals. Airbnb is the platform that I utilize. We'll definitely go through that, but ultimately you can use other ones as well.
How was the insurance for the midterm rentals? They look at them at short-term rentals, so it'll be more expensive, but run the numbers. It'll be worth it. I think my Burlington one, I think it costs me $212 a month as an example, maybe versus $150. Maria, how is the course laid out? Three hour sessions virtual. If that is for the BRRRR class, it has all of the different steps. Like for example, we have 90 minutes of content and then I actually bring in some for the second class. Every part has two calls. The second call is experts and experts actually presenting.
You can build your team as well, along the way. That's for the BRRRR class for the short and mid-term rentals. If anybody is interested in that, it is going to be a five live zoom class. Russell, thank you for mentioning the BCIN stuff. The Building Code Identification Number is what BCIN stands for. You probably don't have to remember that. Just remember BCIN, you can always Google it. AirDNA.co, what they do is like they pool all of the data from Airbnb for those areas and tell you what the occupancy rate, the average nightly cost per night and then you can filter it through by like how many bedrooms you can compare it to yours and all that good stuff.
Do I charge more than long-term rental, but less than short term rentals for mid term rentals? Yeah, exactly what it is. I charge more per night for short-term rentals and then I'll do a discount month for longer stays than a month. That's still very good, from a cash flow standpoint because they're occupied for an entire month. I don't have to worry about any vacancies or sending the cleaner in between or replenishing anything. I only replenish when they leave for the next guest and then they're responsible.
If they're there for six months, I'm not replenishing any of the soaps or toilet paper they're on their own for that. Once they leave, I replenish. It's actually a lot more hands-off. It would probably cost a little bit less in terms of all the upkeep and that kind of stuff. Just to give you an example and I was just doing these calculations the other day, my midterm units. I have a basement apartment unit and I have a two bedroom one, and they're both averaging about 3000 to 3,500 bucks a month in that bungalow.
You take those two times two and if they've both been rented, and again, I'm not going to promise that this is going to be yours, but they've both been rented fully. And actually one unit is completely booked now until the summer or the end of the summer, the top unit until August, and then the other one until like the end of May. But I am getting some inquiries about people wanting to stay for the summer. For the basement unit I'm getting, let's call it between 3,000 grand and 3,500 bucks. Long-term maybe 16 to 19 depending. It's a nice area, but it's just a one bedroom.
I know you guys have a lot of questions. That's awesome. I love it. Do you need the place to be furnished for midterm rentals? You don't have to, but I think you're going to put on an Airbnb and that's where most of my clients actually do come from. You do want to have it furnished and it's going to be easier for somebody that is in between houses, not to have to worry about bringing everything they can just put in a shipping container, put in storage which is what a lot of people do. And then they just live in my place for three months and then proceed from there.
Rob, thank you. He said thanks for all the info. Keep rocking. Awesome. Celia, since you manage your own properties, do you have a system? Yeah, look, the long-term short-term mid-term is all going to be a little bit. But definitely having the right team members is going to be a huge part of it and being able to delegate for sure. Everyone's getting an email. I think we went through all the questions. I think we were doing good for time. I want to say thank you to everybody. That is great. I really appreciate it.
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