S5 E23 | DADUs

One of the reasons that we started broke to woke is so that you could get for free million dollar tips, also known as pro tips, specifically in real estate from the one, the only, Brittany Faith Turner. And in this episode, it's no different. It's a must. Listen, tune in, you'll love it.

Brittany Faith Turner, J Money. Let's give the people what they want.

What do they want?

They're coming here for one reason and one reason only. To get real estate tips from you.

Oh, man.

Yeah.

Well, good thing I got a few up my sleeve. What do you want to know?

I don't. I mean, what's the best way for people to make money right now in real estate? So it's, it's today, today o'. Clock. It's today hour at today o'. Clock.

Well, thankfully there are a million ways to make money in real estate.

It's not the best one though.

The best one is based on you and your situation. And the only course I've made so far, I'm probably going to change that by the time this comes out, but is how to get started in real estate. Knowing what do you have to work with? What's your risk tolerance? How do you know which asset type is right for you? And if you're starting with absolutely zero, how do you become a multimillionaire as quickly as you want to? What's the path to go from that? And so that's my course, which is exciting. If you want to get started, that's the best one, I think out there to just help you organize which path to start studying. Because investing in real estate is a lot like saying, I'm going to become a doctor. Well, what kind of freaking doctor do you want to be? I'm going to say this all the time, so pick a path. What kind of doctor do you want to be?

Podiatrist.

Before you go, study this stuff for years, like learn the pros and cons of each asset type. But for my listeners out there, I know our target audience, age and those who are really just looking to get into real estate at all. I'll tell you an old trick that would help people start building wealth because I am not into having a million side hustles. If you have a job, I really, for karma reasons, want you to be loyal and do good and be studying every free hour you possibly can. But trying to work your side hustle during your work hours is just. It's a douche move.

Yeah.

So this is an excellent way to have other streams of income without it Interrupting your job, and that is having dados. But let me go back the 1980s way to get successful in real estate investing was to buy a duplex, live in one half, rent the other half out, and that person's rent covered the mortgage on both sides. Now, why would you think that that's beneficial?

Well, if it covers the rent, then your costs or your expenses are very, very low.

You have no expenses if their rent covers the mortgage?

Oh, yeah, sure.

Pretty much, yeah. Yeah. And what can you do with that money?

All kinds of things.

Yeah, all kinds of things. So you're living for free and what do you think that duplex is doing over time?

Well, because that's the biggest cost of living for 99.9% of people is the housing. So if that money is available, they can save. And while they're saving, while they're putting their cash away for their emergency fund or paying off their debts, that duplex is hopefully most likely going up in value as well.

Yeah, so that's how people started building wealth, is they would live rent free or mortgage free, and then somebody else is paying that mortgage, they're getting the appreciation. Now a better, faster, cooler way to do it, in my experience is a thing called house hacking. So house hacking, a lot of times people are just renting out other bedrooms, which is great, but the houses I'm designing for my investments and or properties that we live in for the last 10 years are houses that have, they're super cool, but in the back or at the bottom or somewhere on the property is essentially a condo. Now you can live in the condo and rent the big part out, or you can live in the big part and rent the condo out. But it's essentially this duplex and that income, either with a long term renter or an Airbnb renter, is paying the mortgage on that property. It's also allowing you to write off a lot of different things because it's a rental property. But you can be living in these glorious multimillion dollar houses for free and gaining all the appreciation on them. So I always build or live in these houses in up and coming areas. We call that properties that are in the path of progress. They're not in the completely finished, really beautifully, really nice neighborhood. They're right next to them. And so it's a lot of times areas people are like, oh, I don't want to be there. But because it's close to amenities and or nice things, it's going to change, it's going to continue to go up in Value, especially with investors like you. And so how do you have these triple prizes, essentially live for free in a really nice house? Well, quadruple prizes.

Yeah.

Making money off these properties every month and building up all this equity. It's having these amazing houses that I'm talking about, just designed strategically, essentially a condo inside a bigger house. And so some people, you know, if there's not that built into it, one of the ways to accomplish this is called dados. And other places, they call them ADUs. So in Nashville, it's called detached accessory dwelling units, and you can build one of those in your backyard, depending on the zoning where you live. And. Or you can turn an above room garage or a garage in the back into one of these things. And again, you can live in your big house most of the week. In Nashville, our rental market is the weekends.

Sure.

And it's very specific seasons. Because it's bachelorette party season.

Yeah. It's not wintertime.

That's why they call us Nash Vegas. And so you can live in that dadu, or you can live in the big house and then move back and forth into that dadu, Have a closet that locks, have a fridge back there, and you're okay. And so I've had one property in the top part of the market, I'd say, for Airbnbs, make $250,000 a year.

Wow.

And my mortgage on that house was only $5,000 a month.

Heck, yeah.

Yeah, that was a pretty sweet house.

Yeah.

And then what I've learned is that the market started picking up. Lots of people wanted Airbnbs in Nashville. And so when a lot of people flood into an area, how do you still remain successful in your experience?

If everyone's flooding there? I mean, how do you remain successful? Do something different. Be great, be at the top of that curve.

Be great, be the best. Have the standard of excellence. And so you want to hear a couple tips on.

I'm going to write them down and.

Tell them to them, an Airbnb that absolutely crushes. So in my experience.

Before you just buy an Airbnb in an area saying Airbnb market's strong, first look at who's traveling there. Why are they traveling there? What are they looking to do? Are they traveling nurses or are they bachelorette parties? Are they families looking to go on vacation in Florida? That target audience is the most important thing to know before you buy. You know why? No, you have to design around it. It'll also help you pick the location. So if you are in Nashville, the closer you are to downtown. If your target audience are people looking to come to downtown Nashville, the better. You're going to be able to rent a lot more now, even if it's 20 minutes away versus 15 minutes away. That's a big deal to people. Views are really important to people. What are they doing in between going to downtown? Having games or pool tables or cornhole or outdoor grills or rooftop hot tubs? All those things are determined by who your target audience is. If not, your house is just going to be able to only compete based on price. Now price can go up and down and people who, who aren't really looking to live off this stuff can undercut you in a second. So how can you not just based on price, but be the best? And so knowing your target audience allows you to then design around it. And once you've designed around it, you start getting a little crazy with it. So this is huge. A lot of airbnbers want something experiential. So one of my houses. Yeah, one of my houses is an adorable A frame. Everybody loves an A frame. An A frame is so cute. But if I just designed it really basic, like a modern suburb house, people aren't gonna stay there. I've gotta design it really cute and foresty and have starlights and twinkle lights and plan and make it feel like a fort. It's really important. That's what people are going for with an A frame. So wallpaper is back in. It's gotta be the right wallpaper, people.

Wallpaper is back in.

Wallpaper is a really easy way to have your house stand out and be somewhat experiential.

My wife loves wallpaper.

Make it Instagrammable. Yeah, make it Instagrammable, people. It's a really big deal. Yeah. How can your house stand out? What makes people want to take a picture in front of your wall?

Have you ever done. Have you ever done like a wallpaper with the name of the house on it or something? Or like a QR code when people are instagramming it?

I haven't done a QR code in the wallpaper, but we do have a house called Johnny and June, Johnny and June's Tree House Retreat. And then when you walk in, there's this huge mural on the wall of Johnny's face and it's got all these different colors. And then we've got Johnny and June in the upper right hand corner. And so bathrooms all have boots, cowboy boot wallpaper. You know, it might seem cheesy, but what's your target audience looking for? And then cheese it up, have fun with it, keep it clean. That's a priority. But you can put some fun stuff in that house. I have a friend that absolutely crushes, and she just did, like, a Swifty house.

Smart. Good for you. Friend of Brittany.

She had a better name for it, but it is hilarious. And everything is just decked out. Taylor Swift, she's on it. She's an amazing designer. And all of her houses are booked and have waiting lists. Booked out, waiting lists. And her cost to get in isn't very much. And I'm looking at these, I'm like, I would have never bought that. But the way in which she brings them to life, people lose their minds.

Good.

Lose their minds. She knows her audience, and so that's a big deal. Other pro tips are, like I said, thinking through things like really harnessing views, having a really good name for your property. So I've got one called Peace Lodge. I've got one called Peace Teepee Johnny and June Treehouse Retreat. There's just different cool things that you can name them to make them stand.

Out a little bit.

Stand out. But then people have an intention when they come there.

Okay, Names create intentions.

Names create intentions. So on the island, we have rooms like Peace, Love, Love, Joy, Grace, Presence, Dream, Wisdom, Honor, Strength, Tranquility, Gratitude and Abundance, Mindfulness, you know, and so on and so forth. And every time somebody stays in that room, they're like, I'm in gratitude this week. And they start filtering their world through being in gratitude. So naming the house is huge. Not just like 401 Green street, naming the house and then naming the rooms. As an extra pro tip, having something in the room that lets people know which one they're in so they can pick, oh, I'm in peace this week, or I'm in the Tiger Room, Whatever you want to call it, have fun with it. Freedom. So that's huge. So naming those rooms has been really helpful for having my property stand out. Making people want to come back because they have a relationship with the place. Go ahead and swoop up that domain.

Swoop that domain.

Swoop up that domain. Peace Lodge. Or again, don't swoop mine. Swoop up the domains that and the Instagram handles or wherever else you plan on promoting the property. Instagram. Having its own Instagram is a huge opportunity. People love to peep A good Instagram, it'll also save you money on. It's like that brokerage fee. I think Airbnb is like 20% or something like that that they take. If you can generate Your own leads.

Oh, true. Yeah. Because people are finding on Instagram and.

Or the website, it's the booking commission. So if vrbo takes some. Airbnb takes some. If you feel confident you have the right insurances and you want to attract your own leads.

Interesting.

Then you can be saving commissions.

Who's better in your opinion, VRBO or Airbnb?

Airbnb, obviously.

Yeah.

Yeah. I had a terrible experience with vrbo. Difficult to get through, difficult to book. Annoying. Fix it, clean it up. Vrbo.

Well, there you go. Airbnb is better and it's publicly traded. So if you have an Airbnb, my advice, I don't know, suggestion thoughts. Take some of your profits from your Airbnb, buy Airbnb stock, win both ways.

I've been able to grow my businesses for the last 10 years because I don't have any expenses. All of my personal life expenses are covered by my personal assets. They make sure they pay for themselves, which has been really cool. And I actually haven't given myself a raise since I was like 23.

Yeah, what's a raise?

I haven't given myself any rate. I just have a set income and that's fine because I don't want to drain the company because I'm doing so many new startup ideas or launching a new company. So I don't want to be a burden on those. I've been keeping the cash within them to be able to grow each one and let them get stood up. And so that's just been an easy thing to do. I live in multi million dollar properties, but they don't cost me anything. Now you gotta be willing to share.

Yeah, it's true.

You gotta be willing to share. And there's some strategies on that. Quick and dirty pro tips again, nobody sleeps in my room, nobody goes in my bathroom, nobody goes in my closet that is blocked off. You can have special locks on things like your pantry if you don't wanna move things out of there and it still works for the guests. Without doing that, you can block off things like your office, always have sets of sheets, your own sets of dishes, all those things that can be in a special closet that when your cleaners are cleaning the house, they know to swap it out for your stuff if they know you are the guest coming back. And the reason I'm saying that I even do this and share is because we don't just live in one place, we live all over the world. So how do you own multimillion dollar properties in multiple locations and not have to pay for them. And the answer is sharing.

So sharing is sharing.

If I had one full time house and children and this is the only place we live, I would not be sharing like this. I would do the dadu situation. But not bringing people in and out of my home is just too hard with kids.

Sure.

So before you men think you should just let a bunch of strangers in your house and your wife has multiple kids, just know that that's it's only a good idea if you travel the world. If you're traveling the world, that's a great way to own propert. Last cool pro tip is having twin to king beds.

Twin to king beds. So I went to put a queen in one of the rooms on my newest property and my property manager said, you're going to get an extra $500 a night if you have two beds in that room versus one. And I was like, really? Two beds versus a king. So it just said two beds versus a queen. He said that people, let's say it's a bachelor party, they'll share a room and they don't want to share a queen. And so you can just get more people in the house. And people are doing the math. I'm like, all right, let me divide this between my friends.

Yeah, that's why Airbnbs are so popular.

Yeah. So it's a big deal. So I have created on the island there are twin XLs which you have to actually put twin XL in. And putting those two beds together creates a king. Now that's great, except you can't buy bed frames with that. And so you have to do a custom bed frame. But the cool thing is they split apart if you have, let's say, two guys sharing a room that are part of a bachelor party. But if you have a couple sharing in that room, you can put a topper on the bed, put it together, and it's a king that people don't fall in the crack up. The topper's super important. Don't just think you can get away with shoving the bed together because you're going to get some bad reviews.

This is a pro tip.

It's a little thing, but it's such a big deal for people sharing a room and not feeling uncomfortable. It's a big deal.

Can we go back to the bed frame thing for a second? Is that a product idea for.

It's a product idea. I have not been able to find it on the Internet anywhere.

Wait a minute. So the queen of Airbnb intentionality can't find this Product, which means that someone out there should build it.

Yes. Yes.

There's your million dollar idea. Thanks for listening to Broke 12. Hey, we got another one.

The easy thing to do is put one big headboard. One big headboard, and then you can slide back and forth. Anyway, I could talk about this for days, which I.

That's why everyone's here.

There's so many little things that are a big deal. Little things like what kind of fabric are you using on the couch? Because you know they're gonna spill a wine on it, you know they're gonna stand on it. It's all those little things that's gonna make your life hell are going to make life wonderful. And so find somebody else in your area that's doing it. Ask questions. Do your market research. Don't just look for deals based on price. If you're ever going to hold on to any real estate asset, you have to just not look at the flip numbers, but look at the holding and operational costs before it turns into being a good deal. And if you don't do that right, especially if you have investors, you're not going to have them again. So start thinking, asking better questions. It's probably one of the biggest fails I see people do is they're flippers and they try to then like, I'm going to make this one an Airbnb, and they don't do their math right. So I do have an amazing spreadsheet that maybe, maybe we could share with people. It's Performa on how to run your numbers on. Is this a good Airbnb deal or not?

Wow.

I don't know. We're gonna have to be talked into it.

Talk her into it, people. Reach out.

There's so much money listening to this podcast.

No. How could they ever afford such an awesome Excel spreadsheet? Reach out. Ladies and gentlemen, this is what we're here for. We're here to give so much value. We want. We want to be uncomfortable in our giving. We almost want you to be angry at us that we're giving you so much. We love that all of you have shared so many of our episodes and have made so many positive comments on all the social medias. Thank you so much. And with one last episode, one last episode of season five of Broke to Oak. We will see you there.

You've heard it on the show so many times. We very often talk about investing, trading, stocks, the market. If you've ever been truly intrigued by the stock market, you likely know that I teach you and anyone in your family how to do this entirely for free. Go to broketoak.com, scroll down to the bottom and click on Real Life Trading, where you can go through all my free courses, all my free content, and you can learn how to propel your liquid investments to become a force for good so you can give more, earn more, do more good, and really thrive in your world of finances. Sam.