E05: The Best Entry to Start Your Real Estate Empire: Short-Term Rentals with Avery Carl vs. House Flipping with Glenn & Amber Schworm

Who will claim the title of Cash Flow Fight Club Champion? Join us as Avery Carl and Glenn & Amber Schworm go head-to-head in a battle of Short-term Rentals (STRs) vs. House Flipping. Discover the ins and outs of these real estate investment models, from deal sourcing to financing, and uncover practical tips and strategies from industry experts. 

Here are some heavyweight  takeaways from today’s conversation:

[04:29] Avery Carl's background and how she got into short-term rentals 

[06:19] Glenn's backstory of getting into house flipping

[09:34] Amber's background in real estate

[10:48] Round 2: STR vs. House flipping

[17:27] Where they find their best deals

[20:03] The cyclical nature of the real estate market

[31:40] How a cash-out refi works

[43:04] Avery's response to why short-term rentals are the best model 

[54:43] Glenn and Amber's response to why house flipping is the best model 

[1:00:17] Avery's advice for success in short-term rentals 

[1:04:12] Glenn and Amber's advice for success in house flipping

 

Episode Highlights:

[04:29] Round 1: Avery and Glenn & Amber’s Background

 

Avery Carl is the CEO of the nation's top short-term rental and Airbnb rental agency, The Short Term Shop, overseeing a portfolio of over 220 rental units and having connected investors with over 5,000 cash-flowing short-term rentals. Avery is on a mission to help investors reach financial independence through short-term rentals.

Real estate power couple, Glenn & Amber Schworm, have built their empire over the last 15 years after being $80,000 deep in credit card debt. From their point of desperation, they began cashing in on large chunks of profit in the single-family space through flipping homes. They have flipped over 1,000 homes with a finished value of over $100 million in counting since 2007. Now, with a proven business model in hand, they are also on a mission to transform the lives of others with their flipping model.

[10:48] Round 2: Short-Term Rentals vs. House-Flipping

Glenn and Amber, like many others, found that house flipping offered a unique set of pros that appealed to his entrepreneurial spirit. Unlike being a landlord with the responsibilities of managing rental properties, house flipping allowed him to focus on transforming distressed properties into beautiful homes. The design aspect was thrilling, and the potential for quick cash influxes was enticing. While the current market presents challenges in finding off-market deals, networking, and strategic marketing are valuable to uncover those lucrative opportunities.

On the other hand, Avery talks about how she focuses on vacation rental markets that are tourism-dependent and have a history of short-term rentals. She mentions that buying properties that are already furnished can reduce costs for short-term rentals. Sellers in vacation markets are often willing to leave the furniture since removing it can be a hassle. This can reduce the initial investment needed to get a short-term rental up and running.

[29:50] Round 3: Whose Model is the Best?

Glenn highlights the advantages of house flipping, stating that it generates the necessary funds for purchasing investment properties. He emphasizes the tax benefits that come with cash-out refinances. Avery, on the other hand, argues in favor of short-term rentals in the right market, citing a simpler business model with fewer complications. She emphasizes the importance of adaptability for success. Glenn and Amber both acknowledge the sound strategy of Avery's hyper-focused short-term rental model in tourism markets. Ultimately, they all agree real estate offers numerous benefits, such as tax advantages, appreciation, and potential for passive income. And while the concept of "passive income" is often associated with real estate, all business models require active management to some extent.

Resources Mentioned:

Avery’s website: The Short Term Shop

Glenn & Amber’s website: https://glennandamber.com/