This article originally appeared on Business Insider.
This essay is based on a conversation with Syed Lateef, a 36-year-old Airbnb Superhost in Chicago. It has been edited for length and clarity.
I am the CEO of SyedBnb, a short term rental company with over 300 units and 100 employees.
After leaving college for a year before returning to get my degree, I started working in finance, but I didn't aspire to have the lifestyle of company VPs. I wanted wealth, exotic cars, luxury vacations, time and freedom, so I headed real estate.
I started my business in 2017, and in 2023, we did $11.5 million in revenue and $1.4 million in net profit.
Real estate was the key to the life I wanted
After leaving my first role as a financial analyst, I landed a job at Allstate. I was promoted three times in five years, but salary increase did not meet my expectations.
I realized that people I knew in my community who were rich and had nice houses or cars were involved in real estate, which led me to believe that it was one of the main drivers of wealth.
I started listening to the BiggerPockets podcast and read Rich Dad Poor Dad, which motivated me to pursue financial freedom. I expected it would take me 15 years to replace my salary income through real estate, but I was determined.
In 2016, I bought my first multifamily building in Chicago using savings from my finance job and a loan in my 401(k). I put one of the units on Airbnb with the goal of making double the rent in a month that I could expect from a long-term tenant.
I hired cleaners and virtual assistants to do admin work and implement pricing software from scratch (I use PriceLabs).
Within four months, I made triple the expected market rent for a long-term tenant. I realized what an incredible opportunity this was and converted all the units in my building to Airbnbs. I was hooked and wanted more.
Three to four months into my side business, even though family and friends encouraged me to keep my salaried role, I gave my notice to quit. I was now one full time entrepreneur.
Since its inception, I have grown the business to over $35 million in revenue
One of Lateef's units in Chicago. Courtesy of Syed Lateef
I became one Airbnb Superhost in 2018, which means my average ratings are above 4.8 out of 5.
In the second year I expanded rent arbitrage (renting units from owners and subletting them on Airbnb) as I realized it was an easier way to grow my business. After furnishing my units, I lacked the money to purchase more rentals. Now I have 13 apartments and 320 arbitrations.
My earnings reached $2.8 million in 2019. 2020 was a down year due to COVID-19. By 2022, I had my first eight-figure year, hitting $10.5 million in revenue.
I only work a few hours a week
With the help of my employees and the implementation of the author Gino WickmanThe guiding principles of EOS (Entrepreneurial Operating System), my work week moves around two hours.
EOS is a set of concepts and tools for entrepreneurs to get people in the right places, track scorecards, document processes, identify problems and gain traction in their business. Weekly leadership meetings using the EOS system help me achieve a two-hour work week, but those two hours are intensive meetings.
I also handle my landlord relations and business growth, but that is periodic, as well as the occasional proverbial fire.
The biggest mistake I made was growing up too fast
The biggest mistake I made was being too optimistic about growth in the winter before the pandemic. I started gaining weight and ran out of money, but I didn't expect COVID-19 to hit me with a punch. My income went to zero. Airbnb refunded all my future guests. I had no money to pay the landlord's rent.
I negotiated with all my owners to allow me to stay in business. I bought assets from bankrupt companies and managed to grow significantly. For example, I bought furniture for $250 per apartment from a bankrupt company.
Here's my Airbnb tip
My best advice to other aspiring Airbnb Superhosts is to learn from the experiences of other hosts. Join the Airbnb Forums on Facebook and connect with others. Attend networking events. Hire a coach or buy a course to help you start the business.
Then, take action. If you can't afford a property, consider rent arbitrage. So many people get stuck in the learning and planning process. Inevitably, you will learn while you are in the actual business.
When I started, I asked my sister, who is an interior designer, to help me furnish my first Airbnbs. For guest needs, we modeled hotels to see which items made for a good stay. I have learned everything myself through experience.