Don’t have sufficient funds for actual property offers? Right this moment, there’s no excuse. Past methods that assist you to put money into actual property with no cash down, you possibly can all the time begin a worthwhile facet hustle and put the earnings in the direction of your subsequent deal.
On this episode of the Actual Property Rookie podcast, we’re chatting with Ava Yuergens and Josh Janus—two younger entrepreneurs who managed to launch their very own worthwhile facet hustles to assist fund their first actual property offers. Shortly after Ava and her fiancé launched their very personal couch-flipping facet hustle, they have been in a position to generate sufficient money to put money into actual property. Josh was a pupil by day, so he wanted a facet hustle that he may work outdoors of college hours. After seeing the schedule flexibility that DoorDash offered, Josh began making meals deliveries—usually utilizing a number of apps and two telephones to maximise his earnings.
When you’ve ever needed to begin your individual facet hustle, that is the episode for you! You’ll discover ways to launch your individual profitable facet hustle from sq. one, sharpen your entrepreneurial abilities, and generate greater than sufficient revenue so that you can put in the direction of your first actual property deal. Lastly, Ashley and Tony tie the bow on this showdown-style episode by evaluating these facet hustles for upfront capital, incomes potential, time dedication, and danger!
Ashley:That is Actual Property Rookie episode 294.
Ava:We have been making about 10 grand a month with sofa flipping. On common, I’d say if you happen to’re like constant and devoted, you might do wherever from 2 to five every week.
Josh:You don’t need to drive 10 miles delivering $20 in meals, and also you make a $2 tip. There’s DoorDashers making $10 an hour, after which there’s different ones making 40 or 50.
Ashley:My title is Ashley Kehr and I’m right here with my co-host, Tony Robinson.
Tony:And welcome to the Actual Property Rookie Podcast the place each week, twice every week, we carry you the inspiration, motivation, and tales you could hear to kickstart your investing journey. And Rookies, we bought an incredible, nice episode for y’all right this moment. We’ve been torn round with this idea within the background for some time now, however one of many largest obstacles or challenges that we hear from aspiring buyers is the capital that’s required to get began. Whereas there are specific varieties of actual property investing or methods the place you may get in for little to no capital, plenty of instances you want some money to get began. And we thought what higher solution to overcome that impediment than carry again some earlier visitors from the Rookie present and from the Actual Property Podcast who used their facet hustles to fund their actual property enterprise. So right this moment we’ve bought Ava Yuergens and Josh Janus to return again and speak about their facet hustles and the way they use that to gas their actual property enterprise.
Ashley:Then on the finish of the episode, we type of break down three totally different criterias that we have now set as to methods to weigh out these two facet hustles. And the primary one is upfront capital, revenue potential, after which passiveness, what’s the time dedication. After which we type of threw in a fourth one there too as to, what’s the danger? How a lot cash may you lose on this? So be sure to guys pay attention all through and type of test these out. Perhaps considered one of these facet hustles will likely be nice for you, guys. Be certain to depart a overview on YouTube or wherever chances are you’ll be listening and tell us if you happen to like these Facet Hustle episodes. I feel they’re nice for everybody listening, but in addition you probably have youngsters and also you need them to begin earning profits someway, this can be an incredible episode to have them take heed to.
Tony:Yeah. And truthfully, that was a part of how this entire episode got here to be, was as a result of my son’s 15 and he’s making an attempt to avoid wasting up for his automotive proper now and he’s debating on these totally different facet hustle concepts and we thought it’d be cool to listen to firsthand from people. So perhaps we’ll get my son Shawn in considered one of these episodes sooner or later as nicely so he can interview some people firsthand.However just some fast housekeeping issues earlier than we bounce into Josh and Ava’s episode. When you guys can head over to biggerpockets.com/reply, we’ve bought a brand new touchdown web page up the place you possibly can submit your questions for the Actual Property Rookie Reply episodes. We’d love to listen to from our Rookie viewers. It’s considered one of our favourite varieties of episodes to do, is to listen to from y’all and reply your questions immediately.And second, I bought to offer a shout-out to somebody by the username of Nico and Casey. They left us a very heartfelt five-star overview on Apple Podcasts. The title of their overview is My Lighthouse within the Storm. It’s a really deep and touching title, however Nico and Casey say, “There may be a lot recommendation on the market. Most of it’s contradictory for actual property investing that it feels such as you’re being tossed about within the ocean throughout a storm. There appears to be danger and the potential for dropping massive sums of cash irrespective of the place you determined to go. Worst of all, you are feeling such as you have been in it alone. BiggerPockets and significantly the Actual Property Rookie Podcast has been my guiding gentle. Your recommendation is sound and the visitors you interview remind me that anybody can begin this journey. I haven’t closed on my first deal but, however I’ve been making many connections out and in of state, and it’s solely a matter of time. Sustain the nice work.”Nico and Casey, in all probability considered one of my favourite critiques I’ve learn as of late. We admire that. For all of our Rookies which can be listening, if you happen to haven’t but, please do depart us an sincere score overview on no matter platform it’s you’re listening to. The extra critiques we get, the extra people we are able to attain. And extra people who attain, extra people we can assist.
Ashley:Ava and Josh, welcome to the present. Thanks a lot for taking the time right this moment to show us about your facet hustles. I need to begin off with you guys telling everybody just a little bit about your self. Ava, we’ve had you earlier than on the Rookie Podcast. Josh, you have been on the podcast with David for the BiggerPockets Podcast. So let’s bounce in with you. Ava, are you able to begin off with telling us just a bit bit about your self and what facet hustle you will be educating us right this moment?
Ava:Yeah. So hello, my title’s Ava Yuergens. I began an actual property investing firm once I was 15 with my now fiance, Ben. We have been in a position to purchase 900K in residential actual property earlier than I graduated highschool. And now, principally we have been in a position to purchase plenty of actual property due to this facet hustle known as sofa flipping, which we’ll speak extra about right this moment.
Ashley:And Josh, what about you?
Josh:Hey, I’m Josh Janus. I’m 22. I’m an actual property agent and investor based mostly in Cleveland, Columbus, Ohio. Mainly I used to be DoorDashing as I’ll speak about later in school, not likely realizing what my journey was going to be. I used to be listening to the BiggerPockets Podcast and listening to all their instructional materials concerning funds and actual property, and that led into the place I’m right this moment.
Ashley:So Ava, you have been on episode 271 of the Rookie Podcast and Josh was on episode 749 of the Actual Property Podcast. So thanks guys a lot for coming again. We need to break down these facet hustles so on the finish of this episode, somebody listening can exit and replicate what you guys did or perhaps one thing very comparable. So Josh, how did you even hear about your facet hustle and doing DoorDash?
Josh:Yeah, I didn’t actually need to work a standard job. I needed to work a job the place I may perhaps take heed to podcasts or audiobooks or do one thing whereas working to attempt to enhance my total schooling. So I used to be simply type of Googling what may you do. I had a automotive, I had some cash saved up, however I didn’t have something explicit. I feel some Uber Eats advertisements popped up. I used to be like, “Oh, perhaps I’ll strive that out.”
Tony:Josh, it’s such a bizarre world that we stay in now. My spouse and I, we’re infamous for not cooking. 90% of the meals that we eat will get delivered by another person. So both we’re Instacart-ing from the grocery retailer or we’re doing DoorDash or all these different issues. So it’s cool that there’s facet hustles on the market that folks can use via that type of stuff. So that you hear about DoorDash. I imply, how previous have been you on the time whenever you began?
Josh:18 or 19.
Tony:I imply, as an 18 or 19 yr previous, was there any hesitation about driving round your native metropolis delivering meals to strangers? I feel for lots of people, that is likely to be a part of the hesitation round DoorDash. I is likely to be getting forward of myself, however simply, I don’t know, all of the interplay with strangers, was {that a} concern for you in any respect?
Josh:Yeah, I imply just a little bit. Simply navigating, like determining the place to go. Some individuals’s residence complexes or constructing preparations may very well be difficult to any person that isn’t skilled to it, I suppose. So that may make individuals nervous.
Tony:So let me ask this, man. Who do you are feeling is the best individual to take up the facet hustle? What are a number of the abilities or traits or instruments that somebody must be profitable doing this?
Josh:I feel it’s any person that’s self-driven since you actually solely receives a commission for as a lot as you’re employed. However on the similar time, you will be actually versatile with it. You don’t should do it a set variety of hours or set variety of days. There’s all the time these commercials speaking about it, but it surely’s true, you possibly can set your individual schedule.
Ashley:And Josh, what made this a superb match for you? Was it the schedule or was it one thing else that actually enticed you as to that is one thing you needed to do?
Josh:For positive. It was undoubtedly the scheduling as a result of I had lessons through the day and I needed to seek out one thing that I may earn money with after college or on the whole, between 5:00 and 9:00. I don’t need to be out too late. After which I additionally needed to have the ability to both take heed to books, audiobooks, podcasts, et cetera. And this job means that you can do that just about the whole time.
Ashley:Josh, are you able to simply clarify how it’s versatile? How are you setting your individual schedule? Is there an app you’re going into and placing in whenever you’re out there to work? Do you need to set it forward of time? Are you able to simply give us the glimpse as to how precisely you’re setting your individual schedule?
Josh:So sure markets, you’ll really should set your schedule prematurely as a result of it’s aggressive. Wherever hours was working, you possibly can simply go browsing and begin working and also you don’t actually have to inform anyone whenever you’re going to do it. So it’s type of the last word degree of freedom.
Tony:Josh, this isn’t essentially in regards to the facet hustle, however you talked quite a bit about desirous to have the liberty to take heed to podcasts and all this different stuff. Simply out of curiosity since you stated you have been 18, 19 on the time, what sparked that preliminary curiosity for you?
Josh:Yeah, I’ve all the time been type of entrepreneurial. I made duct tape wallets, offered sneakers, offered digital forex. I type of had some cash saved up and I didn’t actually know the place to take that, however I figured if I simply stored jamming info in my head, ultimately I’d determine one thing out.
Tony:I really like that, man. We bought to have each you and Ava again as a result of I do know each of you guys have a number of facet homes that you just’ve tried. Subsequent query for you, Josh, what was the price of entry? What have been the startup prices so that you can get the facet hustle rolling?
Josh:In case you have a automotive that’s inside the final 10 years, I imagine that’s their steerage. And you’ve got a sound driver’s license and you’ve got sufficient cash to pay for fuel at first, that’s actually all you want. You may borrow any person else’s automotive and lease it, however yeah.
Ashley:I didn’t understand that you just wanted to have a automotive inside the previous 10 years. Is that simply because they need your automotive to be dependable in order that the meals is definitely getting delivered and there’s much less danger of breaking down?
Josh:Sure.
Ashley:Okay.
Josh:Yeah, I had a pair, one or two flat tires they really would help in paying for, which is type of useful.
Tony:I used to be going to ask, as a result of I do know I’ve heard Uber, I’ve been in Ubers earlier than the place the driving force says, “Oh, this isn’t even my automotive. I’m renting this automotive from Uber.” And Uber will lease you a automotive. They deal with all the upkeep and the service. So only for anybody else that’s considering of… Even if you happen to don’t have a automotive, a few of these gig based mostly issues will really provide you with a automobile and you then simply should do the work of truly driving it round.
Ashley:Yeah. And Josh, you talked about proper there that they helped you together with your tires. Did they offer you cash whenever you bought flat tires? Or how did they help you with that?
Josh:I imagine they did credit score me for a flat tire and so they additionally paid me for what I’d’ve made if I accomplished the supply. I feel it was each. I may very well be incorrect, however…
Ashley:Oh, that’s fascinating. Okay. So Josh, you’ve began your gig. Had been there every other type of startup prices in addition to having a automobile and having to spend cash on fuel?
Josh:When you purchase a magnetic factor to place in your automotive by your entrance windshield, that’s very useful. So that you’re not continuously trying down, a superb set of headphones, have some snacks, have some water in your automotive, and simply be prepared to simply stay in your automotive for a pair hours a day.
Tony:Mainly, Josh, it sounds just like the startup price for this are comparatively nothing, proper? Most individuals have already got a automobile. Most individuals have already got what they should get began. So if I needed to proper now, I may in all probability begin earning profits with this facet hustle tonight if I needed to?
Josh:Yeah. The precise registration join was a pair days.
Ashley:Okay. After which Josh, as soon as you bought going, how lengthy was it? So since that preliminary day you began the signup course of, how lengthy till you really made your first greenback?
Josh:I made cash on the primary supply. So that you earn money immediately. You receives a commission out as soon as every week, so that you wait a pair days to really get it. However you could be taught what is an efficient supply to take and what isn’t. So ensuring individuals are tipping you and issues like that. However actually you receives a commission from day one.
Ashley:Yeah. How do you inform what is an efficient supply or a nasty supply? I didn’t even know that there was really a distinction.
Josh:Oh, yeah. I imply there’s Door Dashers making $10 an hour after which there’s different ones making 40 or 50 as a result of you need to learn the way like… You don’t need to drive 10 miles delivering $20 in meals and also you make a $2 tip and it takes you an hour spherical journey. However perhaps you drive 10 minutes there, 10 minutes again and also you make $9 and also you waited 5, 10 minutes on the retailer. That’s quite a bit higher utilization of your time. So I feel DoorDash actually means that you can be taught the worth of time as nicely.
Ashley:So can you see? Like when an order is available in, can you see all of that info as to what the tip will likely be, the place the meals is that you just’re choosing up, the place you’re dropping off?
Josh:You’ll see the place it’s and also you’ll see the place it’s going. They cover the guidelines. You may go on Reddit and different boards and work out how they cover it and be taught it. However for essentially the most half, it’s very clear. And truly, each single supply is like its personal impartial contract. So you possibly can both settle for it or deny it and get one other one introduced to you.
Ashley:Oh, so even after whenever you settle for it, you possibly can see all the data after which you possibly can return and cancel it after which go and take one other one?
Josh:Yeah.
Ashley:Oh, okay.
Tony:Does DoorDash aid you optimize your routes as you’re going via this? Since you talked about ensuring that you just’re getting one of the best return in your time. Does it have a routing performance that claims, “When you’re choosing up a number of deliveries, go right here, then right here, then drop off on this sequence”? Or do you need to determine that out your self?
Josh:It does try this, yeah. When you’re in an space, if you happen to’re in a metropolis or someplace busy, it really works rather well. When you’re type of doing it in the midst of nowhere just a little bit I used to be doing, it’s not as nice, however yeah.
Tony:That’s fairly cool. Ash, I don’t suppose I’ve ever shared this with you earlier than both, however I’ve such a colourful historical past. However once I was in school, me and my mates had a startup and it was known as Tumee, T-U-M-E-E. And this was earlier than DoorDash and Uber Eats actually blew up. They have been simply early section startups and we have been making an attempt to basically be the kayak for deliveries. So if you happen to went to Tumee, you’d put in what you needed after which it could provide the greatest worth between DoorDash, Postmates, and regardless of the different apps have been on the time. We by no means actually bought off the bottom. We had a very cool trying app the place we couldn’t get funding. However I don’t know, simply tidbit so that you can know extra about Tony’s historical past.
Ashley:Yeah, all the time having you shock us with all these ventures or jobs or totally different stuff you did.
Tony:All proper, Josh, so subsequent query for you right here, brother. And this is likely to be a foolish query, however how many individuals are in your workforce to do that DoorDash factor? Are you all the time by your self? Are you tag teaming with a buddy? What does that appear to be?
Josh:I had a good friend that did it together with me, so we’d be on calls typically. However the way in which to that I grew it was I began to make use of a number of apps on the similar time. After which as soon as I bought the dangle of that, I really used a number of telephones to get totally different orders. And also you attempt to line all the things up. You don’t need to have individuals wait too lengthy for his or her meals. You bought to be strategic with it. However if you happen to do it proper, you are able to do fairly nicely with it.
Tony:Wait, so stroll me via why you want a number of telephones. Why can’t you do all of it with one cellphone?
Josh:Since you may probably get two comparable supply requests on two totally different accounts that perhaps one home is 2 miles away from the opposite and also you wouldn’t essentially get each of these requests on the similar time on the primary cellphone. So you possibly can type of stack deliveries that method.
Ashley:So it’s nearly such as you’re two individuals then? You’re signed in on beneath totally different logins to the app?
Josh:Yeah, you’re basically two individuals. Yep.
Tony:So what’s essentially the most variety of telephones you’ve been logged into at one time? You bought 5 telephones that you just’re operating round with doing-
Josh:No, that that’d be fairly chaotic. Simply two. I feel I’ve had six totally different deliveries on my automotive as soon as. I feel that was my max.
Ashley:Properly, all I may take into consideration is that tune. I bought two telephones. One for the [inaudible 00:16:10].
Tony:Yeah.
Ashley:Okay. Properly superior, Josh. We simply need to type of dive in and get the background info on DoorDash. And now we’re going to show it over to Ava. So Ava, how did you hear in regards to the facet hustle that you just selected?
Ava:We discovered sofa flipping simply because we searched up on YouTube, simply facet hustle concepts and sofa flipping simply appeared like essentially the most intriguing one.
Tony:Simply, Ava, I feel everybody understands what DoorDash and Postmates are, however for people that perhaps haven’t heard of sofa flipping earlier than, are you able to simply even outline what which means? What does it imply to flip a sofa?
Ava:Yeah, I’ll simply go step-by-step. So step one is you go on apps like Fb Market OfferUp. And you then search for couches that individuals are promoting which can be simply underpriced or perhaps want a clear and you might promote it for larger. However you then principally simply make your provide. You may low ball it similar to actual property. And also you get the sofa, you possibly can clear it or if it doesn’t want cleansing, you simply depart it as it’s. However you then take actually good footage and you then add it again on these apps for only a larger worth.
Tony:So that you’re actually nearly like flipping a home, however you’re flipping a sofa. You’re flipping furnishings that folks have. That’s wild. So who is that this facet hustle for? What are a number of the abilities or traits you could achieve success with sofa flipping?
Ava:I’d say type of like DoorDash, you determine what couches are going to be essentially the most worthwhile and what ones simply aren’t value your time. I’d say it’s not essentially a ability, it’s simply one thing you be taught over time. However I’d say you do must have some muscle, have some meat in your bones as a result of couches are actually heavy, so that you undoubtedly want to have the ability to elevate it up. However I’ll say you are able to do it with only one individual. You may both get the proprietor of the sofa that will help you really get it into your automobile. Or there’s a facet type of hack. You simply put one find yourself on like you probably have a truck, you place it within the truck mattress and you then go round on the opposite facet and elevate the opposite finish and simply push it in. So it’s potential to do it with only one individual, however you simply bought to be robust.
Tony:So simply on the ability facet piece, so Josh talked about how with DoorDash you bought to be good about which deliveries you’re taking and which of them you denied and just remember to’re maximizing your time and maximizing your income. How do you get good at analyzing a sofa? How have you learnt like, “Okay, that is how a lot this sofa goes to make once I resell it on the again finish”?
Ava:Yeah. So over time you’ll understand which couches promote the quickest. The place I stay personally, everybody loves a superb big grey sectional. I don’t know what it’s, however I imply I suppose they’re trendy and so they’re fairly. So we all the time know if we are able to discover a grey sectional for 200 bucks, we may in all probability promote it for 1,200 if it’s good high quality, if it’s huge. So you’ll be taught over time which couches promote one of the best. It’s totally different in every market, however for me personally and for lots of different totally different locations within the US, grey sectionals do rather well. After which it’s also possible to have a look at how far-off is that this sofa. Is it in your metropolis? Is it within the metropolis over? So drive time. I imply, additionally simply if you need to clear up the sofa, take that into consideration as a result of to wash up a sofa, it may take wherever from 10 minutes to an hour.
Ashley:For that you recognize the truth that the grey sectionals go nice, within the very starting, how did you do your market analysis as to what sort of couches you needed to purchase? Was it trial and error? Had been you going up and seeing what issues have been promoting for on Fb Market or OfferUp? How did you be taught what couches go for and what the true worth is?
Ava:Yeah, so such as you talked about, we noticed that, for instance, grey sectionals, they have been promoting actually quick the place we stay. And in addition we watched plenty of YouTube movies and we knew that this one man who sofa flipped a ton, he simply did sectionals as a result of they have been so good. So we tried to stay to simply sectionals. After which additionally a few of it’s simply self-explanatory. Clearly, you don’t need to get a leather-based sectional that’s ripping throughout, in order that’s one thing you possibly can’t repair. So I suppose it was plenty of trial and error, but in addition some technique that you just simply type of be taught over time.
Ashley:And whenever you have been watching these YouTube movies and also you discovered this sofa flipping on-line, what made you determine that this was going to be a superb match for you?
Ava:Primarily simply because my fiancee Ben, he had a truck and he’s robust. So yeah, I imply, I gained’t take full credit score, he was just about the entire driver of it. And in addition simply it was very enticing as a result of it may make some huge cash. I imply, you’re making wherever from on common 200 to $700 an hour. So it’s an incredible return on time.
Tony:After which Ava, what’s the price of entry? If I needed to get began sofa flipping right this moment, what sort of capital do I must put as much as get began?
Ava:So you may get couches without cost or 100 bucks? What we did for our first one is we bought it without cost and we already had the truck so it didn’t price something. However if you happen to don’t have a truck, that is the place it may well get expensive simply since you want to have the ability to have a automotive that’s really going to suit a sofa as a result of couches are big. You bought to have a way of transportation. The one method you possibly can work round not having a truck is borrowing somebody, like in case your grandparents have it, your kin, any mates or renting one or perhaps having the individuals ship the sofa to you. However I imply there’s a pair methods round it, however I’d say having a truck is fairly vital.
Tony:I didn’t even understand. So that you’re saying, Ava, that at instances you’d discover couches that folks have been gifting away without cost after which clear them up and switch round and promote. So your preliminary capital funding could be zero on these couches, is that what you’re saying?
Ava:Yeah. And a few individuals like that we bought them without cost, they’d be actually upset as a result of typically individuals will message you after and so they’re like, “That is my sofa.” However yeah, you possibly can really do it and get them without cost.
Ashley:There in all probability are individuals although that simply need to do away with it and so they’ll give it without cost simply to have any person haul it off of their property in order that they don’t should get rid of it. The place I stay, there’s like a city dump and so they have trash day each occasionally the place you possibly can carry home equipment, issues like that, and you need to load up the trailer of all of the stuff after which drive it there and take it to the dump. I may see if individuals don’t have a truck, they don’t have a trailer, they actually don’t have any method of getting it there, plus it’s an inconvenience to should drive there. So I may undoubtedly see the worth of discovering these those who simply don’t need to do away with the sofa themselves, that they’re keen to offer it away, simply have any person haul it.
Tony:I opened up Fb Market on my cellphone whilst you’re speaking Ash, and the very first sofa that confirmed up says free. The very first sofa on Fb Market is free. So there you go. I by no means even would’ve considered that.
Ava:Yeah, typically they’re free when both they’re simply actually unhealthy or they want a superb clear or perhaps they want similar day pickup or one thing like that. And in addition we’ve been in a position to get couches without cost by… It’s similar to actual property. Like a quick shut, you may get a reduction. Identical with couches. You’re like, “Identical day pickup? Oh, that’s like 100 bucks off.” So yeah, it’s actually similar to actual property.
Ashley:Let’s go into the type of that negotiating just a little bit, as a result of with DoorDash you actually can’t negotiate. You’re just about informed what the associated fee is. However so far as negotiating couches, what are a few of your techniques for that?
Ava:Yeah, so like I simply talked about, similar day pickup is big. Folks simply often after they put up it, they simply need to do away with it. So similar day pickup’s an incredible one, and you may get a pair hundred off for that if you happen to’re fortunate. Normally it’s like 50. Additionally, you possibly can simply perhaps bid towards different individuals. In the summertime is whenever you’ll often get in bidding wars as a result of everybody’s searching for new furnishings. And clearly, shopping for a brand new sofa, you’re paying a pair thousand. After which on Fb Market you may get it for a pair hundred. So lots of people purchase couches on there. Negotiation, there’s some, but it surely’s just about slim to none. However a method you really can get extra money out of individuals after they’re shopping for it’s providing supply as a result of once more, everybody has a truck, so how are they going to get it to their property? So if we ship, we’re in a position to up the acquisition worth by 50 to 100.
Ashley:So alongside together with your startup price, whenever you take these couches, it’s often you’re in all probability not promoting them similar day. So do you’ve a storage unit that you just’re paying for? Or the place do you retailer the couches till you’re really in a position to promote them once more?
Ava:That’s really a very good query. So since we began this once we have been 16, we have been nonetheless in my dad and mom’ home, so we’d simply put all of the couches in my parking spot and I simply park outdoors. However then my dad and mom simply bought, they’re like, “I’m uninterested in these couches in my storage.” As a result of additionally they, typically, they simply have a stench of somebody’s residence, even when it’s not unhealthy, it’s simply… I don’t know. So that they needed them out. So ultimately we did get a storage unit. I imagine our storage unit is a few hundred one thing a month. However you possibly can match a bunch of couches in ours. It’s like ours isn’t very huge, however we simply stack couches on high of one another.
Ashley:After which do you provide supply or do you’ve individuals simply come proper to the storage unit and decide it up?
Ava:Yeah, so it simply is determined by how far-off they’re. In the event that they’re tremendous far-off and so they ask for supply an hour away, we often gained’t do it until we’re really getting a superb worth for it. But when they’re shut and so they really want supply to ensure that it to shut, then we’ll go forward and ship it for them.
Ashley:So with all of this sofa flipping, what was the rationale that you just needed to make this extra cash in any case?
Ava:Yeah. So once more, since we have been making a pair hundred {dollars} an hour, it was an effective way to ensure that us to make some huge cash as simply younger individuals to be able to put money into actual property. I talked about this on my episode just a little bit, however for our first funding we did a 50/50 partnership cut up with my dad and mom. And if you happen to add up the down cost, closing prices after which any restore prices, and you then cut up that in half, my dad and mom paid half after which we paid the opposite half after which we paid our half with all our sofa flip cash.
Tony:Yeah. So that you actually use your sofa flipping enterprise to fund your first actual property buy, which is the entire goal of this episode is to point out our listeners what’s potential whenever you get an honest facet hustle so that may generate some income. So let’s return to that first sofa, Ava. You stated that you just bought that first sofa without cost. How lengthy did it take after you bought that sofa to really get your a refund from promoting it?
Ava:So it did promote similar day after which we delivered it the day after. However we bought it without cost. And once more, with the ability over time, you understand what you possibly can really worth it, however we simply needed to verify we offered it. So we put it up for perhaps 200. And so forth our first one, we bought $200.
Tony:Simply transactionally, what are you utilizing to get the cash? You simply promote Venmo or are you sending PayPal invoices or one thing?
Ava:Normally it’s simply Venmo after which typically simply money.
Ashley:So whenever you did that first transaction, how a lot time did you really put into it with choosing up that free sofa, delivering it? Did you need to clear it in any respect? How a lot did you make hourly for that first $200?
Ava:So on our first sofa we did clear it. I’d say it was about an hour and a half value of labor as a result of it wasn’t too far-off. So we simply needed to decide it up, clear it, take footage. After which really one thing I do need to point out, once more, with the ability is over time you’ll understand methods to promote it within the description. It’s only a itemizing for a home. You bought to speak about it within the itemizing, be sure to make clear issues like colours. After which additionally all the time embrace measurements like peak, width, and size, as a result of individuals are all the time going to ask and it’s only a ache to go remeasure it. So all the time measure it, put these within the description. However I’d say all in all, because it was our first one, it took just a little longer, so perhaps one and a half to 2 hours.
Tony:Out of curiosity, Ava, have you ever discovered one platform being higher than the others to checklist your couches? Do you get extra curiosity on Fb Market or are you on OfferUp? What are all of the platforms that you just’re on and which one has been one of the best one for you?
Ava:Yeah, so I all the time say you are able to do it on OfferUp and Craigslist as nicely, however we have now solely ever used Fb Market as a result of it’s one of the best for promoting and shopping for.
Tony:All proper. So final query right here earlier than we type of swap gears. You talked about you and your fiance, however is there anybody outdoors of the 2 of you? How many individuals do you could make the facet hustle of sofa flipping a practical objective for individuals?
Ava:Only for our finish, it is only one or two individuals. However after all you want people who find themselves really promoting their couches. However simply to really do it, you simply want your self. Clearly it’s going to be simpler to elevate a sofa with two individuals, so hold that in thoughts. However yeah, you are able to do it by your self.
Ashley:Superior, Ava, thanks a lot for sharing the beginning of your facet hustle. We’ve got some extra questions for you, guys. So Josh, let’s return to you. Are you able to recount a loopy second? Perhaps it was an interplay with the shopper, an enormous order you had, or perhaps one thing went incorrect. Are you able to type of give us that leisure?
Josh:Yeah, it was… I don’t know. It was 2:00 PM on a Tuesday or one thing, like center of a workday, and I used to be delivering Taco Bell to this home that had an enormous gate. So I had the code and I bought via the gate and it was 1 / 4 mile driveway on this big home with like… It had a Lamborghini and a Rolls-Royce within the driveway. It was absurd. I used to be like, “Why are you guys ordering Taco Bell?” I don’t know. I assumed it actually humorous.
Tony:You understand what it is best to have did Josh? Have you ever seen these movies the place it’s the individuals going as much as millionaires properties and saying, “Hey, what do you do for a residing?” Did you get to ask that query?
Josh:I want that was occurring once I was doing this as a result of I may have simply accomplished that additionally. After which perhaps you had two companies going.
Tony:There you go, man. That may’ve been been a very good concept. Oh, I really like that. So that you by no means had anybody that was like, I don’t know, belligerent or drunk or simply something loopy like that the place you have been fearful for the place the scenario may go?
Josh:Fortunately, the vast majority of what I used to be doing was throughout COVID, so really I didn’t meet too many individuals, however I’m positive there are some humorous tales on the market about that.
Tony:Ava, what about you? Flipping couches, assembly up with individuals, any loopy tales about both who you offered to, who you acquire from, something in between?
Ava:Yeah, so there’s the small issues the place couches have, like we’ve been lifting them and so they simply fall down the steps. Or one time, really a pair weeks in the past, we have been lifting one after which abruptly we have been going out the door and their cat simply jumped proper out of the sofa. However there’s this… Yeah, so we nearly took their cat. However there was this one time we have been going into town downtown. I don’t know, it was type of this sketchy space. The neighbor’s home… We have been going into the home to get the sofa, however then the neighbor, I don’t know what they have been doing, however they have been on the porch after which abruptly we made eye contact and he pulls up his AR, not pointing at me, however he simply pulls up and simply present it. We simply sprinted to the automotive and left. Truthfully, I simply couldn’t. However yeah, these are the loopy tales I can consider proper off the highest of my head.
Tony:Yeah, I suppose getting a gun pulled on you is [inaudible 00:31:27].
Ava:Yeah.
Ashley:And that’s the one factor we didn’t speak about with both of them is pulling as much as strangers homes. And particularly Eva, if you happen to’re going into the homes to get couches, what are some methods to type of defend your self? I do know at this one property that I’m at proper now the place I’ve been working quite a bit, we’ll order groceries right here as a result of we have now a full kitchen and all the things. It’s simply this very random filth street that Josh says goes again 1 / 4 of a mile, however that is all filth and the property’s overgrown. There’s like a haunted home trying issues on the finish. You understand may inform they’re unsure in the event that they’re in the fitting place. So how do each of you navigate as to love are there sure areas you gained’t ship to Josh, or Ava you gained’t decide up couches from?
Ava:For me personally, Ben’s… Properly, he all the time says this, Ben’s a very good wrestler, so he’s like, “I’ll be high-quality. I’ll beat him up. Don’t fear.” So I’m all the time with Ben once I do it. However he went to state yearly. He’s good, so I’m okay.
Ashley:And Josh, what about you?
Tony:Yeah, is there ever a DoorDash you’re like, “No, I’m not choosing that one up. I’m not going there.”
Josh:I’d make the most of the guidelines as a method of judging the world. So if I’m delivering $60 in meals and also you’re giving me $2, it’s like I’m in all probability not going to go over there.
Tony:That’s fascinating. I don’t even suppose I ever observed what the tip is as a result of DoorDash simply has a default tip quantity. I don’t suppose I’ve ever modified that. However now listening to from a DoorDasher, I’d must pay extra consideration to that to be sure that I’m getting my fruit delivered shortly, proper? As a result of can you alter your tip quantity on DoorDash after you’ve submitted your order?
Josh:You may change it after. I’ve had each typically like I can’t open up the meals, I don’t know really what’s in there. And other people could be like, “Oh, they put onions” or one thing on the meals after which they’d take half their tip away and it’s like, “Dude, I had nothing to do with that.”
Tony:Wow, I didn’t know that. I didn’t know that. All proper. Let’s go to our subsequent query right here. What about longevity, simply by way of how sustainable the facet hustle is? So Josh, let’s begin with you, man. I imply how sustainable or how… I don’t know, I suppose how lengthy do you are feeling you might sustain doing DoorDash as a facet hustle?
Josh:I feel it pairs rather well with a W2 job or one thing the place you possibly can work at evening or perhaps you’ll work on a Tuesday or a Saturday morning. I feel it’s sustainable so long as you need to do it.
Ashley:And Eva, what about you for sofa flipping? I’d suppose that perhaps lifting couches might take a toll in your again ultimately, however what would you say the longevity is for doing sofa flipping?
Ava:Yeah, I’d say you possibly can harm your again, so you bought to watch out. However so long as you’re match sufficient and you may elevate heavy objects. And in addition, I suppose if we’re speaking about you probably have a job whereas doing this, plenty of the instances the one draw back about sofa flipping actually is it’s not likely by yourself time. It’s every time a superb sofa pops up as a result of they’re not on there 24/7 on a regular basis, as a result of clearly if it’s good, it’s going to go quick. So you need to be continuously your cellphone, refreshing the web page in orders to textual content the individual immediately like, “Oh, I would like this sofa.” So pairing with the W2 job, I imply you possibly can solely take so many loo breaks, so I don’t know. However I’d say it’s good for the weekends and stuff. However yeah, longevity smart, so long as you’re good with lifting heavy objects, you are able to do it so long as you need.
Ashley:And Ava, if I bear in mind appropriately, you’ve a bunch of digital assistants on your different enterprise. However for a facet hustle, do you suppose you might rent a digital assistant to principally simply comb via listings each day or have them set alerts and the place you’re not even having to fret about logging in and checking for all these listings?
Ava:Undoubtedly. I undoubtedly suppose you possibly can as a result of if you happen to simply plug within the location, anybody can do it from wherever. So for positive.
Tony:Man, now my head’s spinning. Might I construct a sofa flipping empire the place I’ve VAs throughout each single-
Ava:Folks do. Folks have big warehouses and purchase them at wholesale. It’s loopy. It’s best to simply look it up on YouTube.
Tony:Properly, I suppose that leads into my subsequent query. And Ava, I’ll begin with you on this one by way of consistency of revenue, since you stated individuals aren’t posting couches all day each day. So I suppose what number of couches may you flip in a month? What’s the typical quantity that somebody may count on to do? Am I flipping a sofa each day? Is it as soon as every week? What does that appear to be?
Ava:I’d say it is determined by… Clearly in spring and summer time, individuals are shifting, so it’s extra frequent. However on common, I’d say if you happen to’re constant and devoted, you might do wherever from two to 5 every week. So simply from a revenue perspective additionally you might do much less couches, however simply elevate the value larger, simply all that type of stuff. However we have been making about 10 grand a month with sofa flipping, particularly through the summer time once we didn’t have college.
Tony:Yeah. And gosh, so 10 grand a month, what number of couches is that, like ballpark?
Ava:I’m considering like 10 to twenty. 10 to twenty, okay. I’m going to say 10 to twenty.
Tony:Yeah. Wow, that’s plenty of couches in a month. 15 couches a month, that’s like a sofa each different day. That’s plenty of quantity. I didn’t understand there have been that many couches on the market. I’m wondering if it’s considerably market dependent.
Ava:It’s.
Tony:Such as you in all probability should be in a much bigger type of metropolis to get that type of quantity. Whereas if you happen to’re in a extra rural or distant space, the quantity of couches is likely to be smaller. Like each home in your neighborhood is on acres and acres. So the density simply isn’t the identical as mine the place I can see my neighbor’s home out my window proper now. So I’m wondering what that appears like.
Ava:Yeah, I agree. It’s actually market particular as a result of we stay proper outdoors Milwaukee, so there’s plenty of couches on the market on a regular basis.
Ashley:Josh, what does your revenue appear to be on a nasty month, a superb month, and the way lengthy are you really spending time driving and what number of deliveries on common would you say?
Josh:Yeah, whenever you begin out, you could be taught what orders are good to take and what aren’t. So you possibly can in all probability be round $15 an hour, perhaps 20 at first. However as you type of decide up the tempo, you be taught when to go. The warmer hour’s throughout lunch and dinner, particularly extra on the weekends versus weekdays. I imply, you possibly can push 40 to $50 an hour fairly constantly. In fact it’s market dependent. I type of did it in an space the place there have been three major procuring facilities with 5 to 10 eating places at every, and I type of simply cycled via these. However it’s type of in all probability averages round 30.
Tony:So Josh, you stated you’d cycle via the identical eating places. So have been you mates with the individuals on the native Johnny Carino’s as a result of they noticed Josh coming in each different day? Or was it a number of deliveries from the identical restaurant every day? What’s the frequency at one location?
Josh:Yeah, I imply, you might in all probability do 10 to fifteen at one restaurant and nearly simply be their supply individual throughout the whole day. And bonus, you really, if you happen to begin to make mates, they gives you the meals that no one picks up and you may get a bunch of free lunch and dinner. I imply, I had nearly each single main meal lined without cost.
Ashley:That’s one other price saving tip there to economize not having to pay for meals on your meals. Properly, that’s superior guys. I need to carry you guys each in to do a bunch dialogue right here and perhaps you guys have questions for one another too in your facet hustles. However trying again, is there one thing you’d’ve accomplished otherwise to make your facet hustle perhaps extra worthwhile, perhaps extra passive or environment friendly? Ava, let’s begin with you.
Ava:Yeah, so I’d in all probability say that now we go… We set a sure profitability objective. For instance now, if a sofa isn’t going to make us 500 inside the hour, we’ll in all probability not get it simply because we have now our different companies now. So yeah, we have now a objective. However now on common our couches make wherever from 500 to 1,000 for each one to 2 hours as a result of that’s how lengthy it takes to flip a sofa.However I’d say I want sooner I’d’ve simply gone for the larger fish as a result of at first when a sofa was priced at $400, it could type of be scary to purchase. However now realizing what I do know, I want I’d’ve purchased a few of these couches as a result of if it’s a grey sectional and it’s priced for 400, nicely you might promote that for over 1,000. So that you’re nonetheless making an enormous chunk of cash. However I used to be simply scared as a result of it was simply some huge cash once I was used to getting couches without cost. So I say one thing I want I knew sooner or now I do know is simply you don’t should be terrified of the larger worth couches simply because they’re larger priced. It’s the identical as flipping a million-dollar home and promoting it for a pair extra million.
Tony:Ava, did you ever lose cash on a sofa?
Ava:Sure, we have now. We’ve got damaged even earlier than. Loads of the instances it’s as a result of we have been 16 and actually nervous. So when the photographs regarded actually good and we’d go to the home, we’d be scared to say, “Oh, nevermind, I gained’t need it anymore.” So we’d simply take it, which ultimately we discovered to be like, “No.” However yeah, so we have now. These clearly are majority of the instances, that’s once we’ve damaged even and even misplaced 100 {dollars} or one thing. However dropping cash on a sofa flip, it’s very uncommon, but it surely does occur.
Tony:Josh, I’m wondering for you, have you ever ever misplaced cash on doing DoorDash? When you regarded up your week and perhaps what you spent on fuel, it didn’t equate to what you really made through the deliveries. Has that ever occurred?
Josh:No, I wouldn’t lose cash that method, however typically you’d expect a money tip. Like this one supply, I drove nearly an hour away from the shop and it was catering. It was $350 in meals. I went of their home and I put all of it… I set all of it up for his or her household, and I didn’t get a single greenback tip and I used to be actually irritated. So there goes two hours of time for 10 bucks.
Ashley:Yeah, I suppose that’s like the way you lose cash is that your hourly fee goes down considerably. So it turns into to the purpose the place it’s not value your time, despite the fact that you’re not bodily dropping cash, however you’re dropping your time and it’s not definitely worth the worth. Okay, so do you guys have any questions for one another earlier than we type of shut this out?
Ava:I do. Do you’ve a DoorDash hacker secret that nobody else is aware of that you just suppose it could be fascinating to share?
Josh:They do catering now, so I’m unsure how to enroll. However if you happen to may simply ship catering orders. And I do know one man that does it and he was doing rather well. A number of apps. Folks don’t actually do that fairly often. After which go on Reddit and attempt to be taught the guidelines like how they cover their ideas. I’m not going to elucidate it right here, however principally you possibly can work out like, “Ooh, this one’s going to be over $12′ or one thing like that.
Tony:Josh, I really feel like the 2 cellphone factor and with the ability to be in two telephones on a number of apps… As a result of what? There’s Postmates, there’s DoorDash, there’s Uber Eats, I suppose, do you’ve a favourite between these? Do you favor DoorDash or have you ever tried Uber Eats or Postmates?
Josh:I in all probability want Uber Eats to be sincere. It’s so market dependent within the hours if you happen to actually get within the weeds on it.
Tony:Dude, I’m wondering if you happen to may very well be an Uber driver who does Uber Eats and Uber on the similar time. So that you’re choosing up individuals, however you then’re like, ‘Hey, I bought to cease by McDonald’s,” decide up this meal and you then drop off the meals in and the individual. Superior. Josh, what about you Have any questions for Ava on the sofa flipping facet?
Josh:Undoubtedly, yeah. This is sort of a observe up query after this. How usually do you see the identical sofa or one actually comparable?
Ava:Once I’m shopping for them, simply how usually do I see a repeat sofa that I’ve seen earlier than?
Josh:Yeah, I’m asking as a result of perhaps you might take clean or template images after which nearly pre-sell them.
Ava:We’ve got accomplished that.
Josh:Good.
Ava:We’ve got accomplished that. Oh, we bought in bother although. So one time this one sofa, it went up on Fb Market and it was going loopy. Everybody needed it, however we bought it first and we bought it for a pair hundred bucks. We made a thousand {dollars} on this sofa. However earlier than we even bought it, we simply uploaded the photographs as a result of it regarded grey within the footage, which individuals like, but it surely was inexperienced in individual. This sort of bizarre gentle, inexperienced grey. However we put within the description it’s inexperienced. Don’t fear, I wouldn’t try this. However the footage that she took simply regarded so significantly better. So we simply uploaded them. Everybody, because it was so standard, individuals have been making an attempt to get it, everybody’s coming like, “Somebody already tried to put up this for lots of of {dollars} much less.” After which different individuals have been commenting, “Respect the hustle child.” Yeah, however we have now reposted the identical footage, however we haven’t ever used inventory images as a result of often individuals suppose these are scams more often than not.
Tony:Yeah, I wouldn’t take inventory images both. However yeah, I like the thought of like, “Hey, perhaps earlier than you even get it, if it’s the identical sofa… If there’s an IKEA sofa that’s all the time promoting in your neighborhood, then simply having these images may work.”Properly, Josh, Ava, each of you I feel have given a lot worth to the Rookie viewers by way of methods that you would be able to generate some further capital to fund your actual property enterprise. And like we stated on the high of the present, each of you have been visitors on BiggerPockets Podcast. Ava, you have been episode 271. Josh, you have been 749 on the Actual Property present. So if anybody listening desires to return and get their full backstory, try these episodes.However one remaining query earlier than we let y’all go. Josh, we’ll begin with you after which Ava, we’ll go to you. But when somebody desires to begin your facet hustle right this moment, give me the 30-second step-by-step sport plan of methods to get began if I need to do it this afternoon.
Josh:Be sure you have a automotive that’s dependable. Good tires. Good brakes. As soon as you bought that, join as many apps as you possibly can. Use an precise deal with. Use all the actual info and map out the place you’re going to attempt to give attention to. When you don’t know your native space very nicely, attempt to see the place all of the shops are and hit these areas up. After which perhaps even take a day and type of drive and stroll via a number of the eating places and work out which of them appear to be operating effectively and which of them aren’t. And attempt to give attention to those which can be faster and simply get going.
Tony:Ava, how about you?
Ava:Obtain Fb Market. Be sure you have a truck or a truck you possibly can borrow. Begin making affords on couches, get a proposal accepted, go get the sofa after which take fairly footage and add it.
Ashley:Superior. Thanks, guys. One final query. How has this helped you guys together with your actual property investing careers? Have you ever used cash from the facet hustle to buy properties? Have you ever discovered the precise priceless abilities which have type of translated into your actual property enterprise? Ava?
Ava:Yeah. So I clearly have used sofa flipping to not solely get my first rental property, however our second property was a brief time period rental and there’s like 10 grand value of simply mattresses, decorations, simply housing provides that you just’d want in an Airbnb. So we saved up 10 grand from sofa flipping to be able to purchase all that stuff. After which additionally simply abilities smart, this was our first time ever doing gross sales and earning profits and negotiating. I say we discovered lot of that. And in addition me and Ben are each type of extra introverted, so this undoubtedly helped us crack out of our shells and speak to individuals who we didn’t know, so yeah.
Ashley:And Josh, what about you?
Josh:It’s a reasonably great way of perhaps being eligible on your first home hack if you happen to do it for 2 years as a result of you possibly can set up two years of tight revenue after which it’s also possible to really… I’m not a tax advisor, however you rack up plenty of miles and you may write it off and really not pay that a lot in tax on the revenue. However I principally used it to fund just a few of my first offers and I used to be in a position to take heed to a ton of podcasts and books and set myself up quite a bit higher for once I was prepared to begin making some investments.
Ashley:Superior. Thanks guys a lot. Josh, are you able to inform everybody the place they will attain out to you and discover out some extra info?
Josh:Undoubtedly, yeah. Josh Janus on BiggerPockets. After which Josh Janus on Instagram.
Ashley:And Ava?
Ava:Hello, I’m simply Ava Yuergens on Instagram, TikTok, YouTube, and you might simply attain out via DMs after which additionally Ava Yuergens on BiggerPockets.
Tony:Simply actually fast, if every of you possibly can spell your final title, simply so individuals know methods to discover you. Ava, you go first.
Ava:All proper. So it’s Y-U-E-R-G-E-N-S.
Tony:Cool. After which, Josh?
Josh:J-A-N-U-S.
Ashley:You guys can attain out to them to speak about facet hustles and even actual property investing. Be sure you return and take heed to their episodes. We had Josh on Actual Property Podcast episode quantity 749, and Ava on the Rookie Podcast episode quantity 271. Thanks guys a lot for becoming a member of us, Ava and Josh, and offered a ton of worth right this moment with the facet hustles.
Josh:Thanks.
Ava:Thanks.
Ashley:Properly, that was actually fascinating, Tony, studying about these two facet hustles. You and I’ve the worst shiny object syndrome as a result of we each are already considering, “How can we make these work?”
Tony:I’m going to have the most important sofa flipping enterprise in America by the top of the yr. Yeah, it was actually cool. I imply, Ava and Josh, I feel each gave totally different views. I feel what’s so cool, Ashley, is that there’s so many alternative methods you possibly can fund your first deal. So there are actually no excuses round why you possibly can’t get began in actual property investing, as a result of each Josh and Ava authorized it doesn’t matter what your age, irrespective of the place you’re at in your life, with little or no assets, you can begin producing further income to place in the direction of your first actual property deal.
Ashley:Yeah. So we thought for this phase we’d type of weigh these facet hustles with three totally different components. So the primary one is, what’s the upfront capital? How a lot cash do you could begin the facet hustle? What’s the revenue potential? How a lot are you able to really make? After which is it passive or is it going to take up plenty of your time? What does that dedication appear to be? So so far as the upfront capital, I really feel like these have been really very comparable, the 2 facet hustles. What I may see is that you just wanted a automobile or entry to a automobile being type of the principle precedence of those two facet hustles.
Tony:Yeah. And I’d say the vast majority of people listening to this podcast have already got entry to a automobile. Solely caveat is that I suppose with DoorDash it may be greater than 10 years previous. After which with the sofa flipping, you in all probability want a truck or not less than perhaps like a minivan the place you might come out the seats or one thing. However neither one required a big sum of money to get began. So let me simply shortly break down how the scoring’s going to work. So 1 could be poor, 2 could be common, after which 3 could be nice, okay? So if we give one thing a 1, it means we’re not tremendous stoked about. If we give one thing a 3, it means we’re actually stoked about it.
Ashley:So I feel for the upfront capital, Tony’s at a 3, I’m at a 2 simply since you do must have that automobile expense. And with a automobile comes paying for fuel, it has upkeep on the automobile that you need to preserve.So our subsequent class is the revenue potential. So so far as these two totally different hustles, I truthfully suppose sofa flipping has a method larger potential at earning profits than DoorDash as a result of I really feel like DoorDash, you’re type of restricted as to how a lot you possibly can really drive. And as Josh talked about, you may get actually good at logistics and have two telephones and totally different apps on them and attempt to coordinate as greatest as potential, but it surely’s nonetheless you bodily having to go round and make these deliveries, the place sofa flipping, I see it as there’s part of it the place you’re monitoring, you’re negotiating on-line the place it’s not bodily having to drive but to work this enterprise and you then’re going to select up. And sure, there’s a max as to what number of couches you possibly can really decide up in a month. However with the sofa flipping, it appeared that per a sofa, there was a larger span or larger hourly fee that they have been getting in comparison with doing DoorDash.
Tony:Yeah, I’d agree with that utterly. I feel that the upward revenue potential for the sofa flipping… Like Ava says she was making 10 grand a month flipping couches. To not say that you just couldn’t probably try this with DoorDash and Uber Eats and Postmates, however the time dedication will in all probability be considerably larger to try to get to that degree of revenue. So yeah, I feel I’m going to offer sofa flipping a 3 with regards to the revenue potential. And I’d in all probability give Uber Eats a 2.
Ashley:Yeah, I agree with that. I feel there’s one thing else that we may put into this class too as to your danger additionally. As to DoorDash, there’s not plenty of danger. You’re not likely placing up cash up entrance, the place with sofa flipping, you might be spending $400 to purchase this used sofa and you then promote it at a loss for 200 and now you’re out $200. The place with DoorDash chances are you’ll be out just a little bit on fuel cash, however Josh stated that’s actually by no means occurred the place he hasn’t not less than made again his fuel cash. However so far as his time, he may need pushed someplace and ended up being $5 per hour he ended up getting paid and making. So I feel that it’s vital to weigh that distinction too.
Tony:That’s an incredible level, Ashley. Yeah, there’s no danger actually to DoorDash as a result of once more, all you bought to do is bounce in your automotive and perhaps you spend just a little little bit of fuel, however that’s it.
Ashley:And in addition I’d say you’re extra assured to really have enterprise the place sofa flipping it is determined by what’s being listed in your market, how nicely are you at negotiating, how nicely you recognize what a sofa sells for and what it’s really value. So plenty of analysis and plenty of studying. The place DoorDash, you’re given the enterprise, it’s there and you may take it above and past like Josh stated and actually work out the tip system. However not less than you recognize you’re going to receives a commission to one thing for the usual fee from DoorDash.
Tony:All proper, I suppose our final class then is passiveness. That is passiveness/ time dedication. I feel each of them type of have some pluses and minuses to every. Josh with DoorDashing, I feel the profit from a time perspective is that you just management whenever you work and whenever you don’t. When you simply need to do that round your day job and say, “Hey, I’m at work from 9:00 to five:00 and I’m going to DoorDash each day from 5:00 to eight:00,” then you possibly can decide to that point window and extra probably than not, you’re going to have the ability to generate some income. Whereas with the sofa flipping, like Ava stated, you’ve bought to type of be monitoring that all through the day as a result of if you happen to’re late on the set off, you might miss what’s a very whole lot. So I feel from a flexibility standpoint, I do like DoorDashing just a little bit greater than the sofa flipping.
Ashley:Yeah. I feel so far as the analysis, the evaluation, DoorDash is I feel quite a bit simpler to love, “Let’s simply go and do it” and also you’re earning profits day one. The place sofa flipping, you do have to really be taught and do a little analysis in your market onto the worth of a sofa. And so I feel the time dedication of researching sofa flipping and actually understanding your market undoubtedly can take up plenty of time, particularly with simply getting expertise of shopping for and promoting to get good at it and likewise negotiating.So so far as passiveness, I feel mentally DoorDash could also be extra passive. In case you have one app, you get the alert. Okay, that is the place you need to go decide up the meals, you then’re delivering it. The place with sofa flipping, you need to actually suppose, “Is that this sofa value it? Is it going to be a deal? How far is it going to take me to select it up?” And all these various things which can be type of aligned with that. So I suppose so far as passiveness, so far as time dedication, what do you say your scores are for that?
Tony:Yeah, I suppose only one last item so as to add on to that. I do additionally like, and we simply barely scratched the floor with this, however there’s the flexibility with sofa flipping to rent digital assistants that may type of scale back that point dedication your self. So you probably have a VA that’s oversees and their entire job is to undergo the entire Fb Market listings, the entire OfferUp listings, regardless of the little platform you possibly can consider and so they’re simply monitoring that, searching for couches that suit your standards, after which as soon as they discover one thing, it’s all via the messaging apps anyway, so in the event that they’re simply in that app and so they’re messaging for you after which after they lock one thing in, you then’re simply going on the market and choosing it up and validating all that stuff.So clearly that’s just a little bit extra concerned. However I’d say if we exclude the digital assistant factor, I’d in all probability give the sofa flipping a 1 simply because I feel that there’s just a little bit extra friction there. And I’d give DoorDashing a 2 solely as a result of it’s all the time tied to your individual time. So I give sofa flipping a 1, DoorDashing a 2.
Ashley:And with the sofa flipping too, cleansing. That’s your time cleansing. To begin with, lifting the couches is bodily labor, cleansing the couches is the precise labor you’re having to bodily do your self. I imply, with sofa flipping, I feel you might rent all the things out and nonetheless make just a little little bit of revenue on the finish of it, however I feel the individuals which can be in all probability working for you’re in all probability going to catch on like, “Why am I going and choosing up these couches for any person else? I can do that myself.”
Tony:“I can do it myself.” Yeah.
Ashley:Yeah. However so grateful to have these two visitors on right this moment to speak about facet hustles. Earlier than we shut out right this moment, I do need to give a shout-out to an actual property Rookie, gfrproperties19 on Instagram. He used the hashtag #realestaterookiepodcast and I noticed his put up the place he really used the BiggerPockets calculator stories on biggerpockets.com and he confirmed us a pattern of an evaluation he did on a property not too long ago. And he stated, “Because the market has been evolving, we have now needed to evolve our strategy to seek out our subsequent property. We are actually searching for a small multifamily property to accommodate hack as our mortgage phrases will likely be extra favorable as rates of interest proceed to go up.” Then he requested for different individuals to remark as to alternative ways they’re having to evolve or pivot their technique and the way they’re analyzing offers. So go observe @gfrproperties19.And if you happen to guys need to submit a query, be sure to guys go to biggerpockets.com/reply and submit your query or submit your facet hustle so we are able to have you ever as a visitor on the present. As all the time, thanks for listening. I’m Ashley, @wealthfromrentals, and he’s Tony, @tonyjrobinson, and we will likely be again on Wednesday with a visitor.
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