This article originally appeared on Business Insider.
This essay is based on a conversation with Syed Lateef, a 36-year-old Airbnb Superhost from 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 dropping out of college for a year before returning to graduate, I began working in finance, but I didn’t aspire to have the lifestyle of corporate vice presidents. I wanted wealth, exotic cars, luxury vacations, time and freedom, so I focused on real estate.
I started my business in 2017 and in 2023 we made $11.5 million in revenue and $1.4 million in net profit.
Real estate was the key to the life I wanted
After getting fired from my first financial analyst role, I got a job at Allstate. I was promoted three times in five years, but the salary increases did not meet my expectations.
I realized that people I knew in my community who were wealthy and had nice homes or cars were involved in real estate, which made me believe it was a major driver of wealth.
I started listening to the podcast “BiggerPockets” and reading “Rich Dad, Poor Dad,” which motivated me to pursue financial freedom. I expected it would take me 15 years to replace my employment income with real estate, but I was determined.
In 2016, I purchased my first multifamily building in Chicago using savings from my finance job and a loan on my 401(k). I put one of the units on Airbnb with the goal of earning double the rent in one month that I could expect from a long-term tenant.
I hired cleaners and virtual assistants to do administrative work and implemented pricing software from the start (I use PriceLabs).
In four months I earned three times 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 Airbnb. I was addicted and wanted more.
Three or four months into my side hustle, even though my family and friends encouraged me to stay in my salaried role, I gave notice to leave. I was now a full-time entrepreneur.
Since its launch, I have grown the business to over $35 million in revenue
One of Lateef’s units in Chicago. Courtesy of Syed Lateef
I became an Airbnb Superhost in 2018, which means my review average is above 4.8 out of 5.
In year two, I expanded into rental arbitrage (renting units from owners and subletting them on Airbnb) after realizing it was an easier way to grow my business. After furnishing my units, I lacked the money to purchase more rentals. I now own 13 apartments and arbitrage 320 of them.
My revenue reached $2.8 million in 2019. 2020 was a bad year due to COVID-19. In 2022, I had my first eight-figure year, reaching $10.5 million in revenue.
I only work a few hours a week
With the help of my employees and implementing the guiding principles of author Gino Wickman’s EOS (Entrepreneurial Operating System), my work week is around two hours.
EOS is a set of concepts and tools that help entrepreneurs put people in the right place, track scores, document processes, identify problems, and gain momentum for their business. Weekly leadership meetings using the EOS system help me achieve a two-hour work week, but those two hours are intense meetings.
I also deal with owner relationships and business growth, but this is periodic, as is 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 growing up and ran out of money, but I didn’t expect COVID-19 to hit me with a knockout punch. My income dropped to zero. Airbnb refunded all my future guests. I didn’t have the money to pay rent to the landlord.
I have negotiated with all my owners to allow me to stay in business. I have purchased assets from bankrupt companies and have been able to grow significantly. For example, I purchased furniture for $250 per apartment from a bankrupt company.
Here’s my advice on Airbnb
My best advice to other aspiring Airbnb Superhosts is to learn from other hosts’ experiences. Join the Airbnb Facebook forums and connect with others. Attend networking events. Hire a coach or purchase a course to help you start the business.
So, 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 as you do the actual activity.
When I started, I asked my sister, who is passionate about interior design, to help me decorate my first Airbnb. For guests’ needs, we modeled hotels to see what elements created a good stay. I learned everything myself through experience.