So I'm currently running 2 airbnbs in my town with a price of $70usd per night and I see there's a huge opportunity where you can make an airbnb with swimming pool + amazing interior design and then you can up the price to $500 USD per night.
I'm building this banglo and will split it into two units of airbnb. Each unit can accommodate up to 10 guests, 4 bedroom, 5 beds and 3 bathroom. I'm planning to charge $500 USD per night for this one.
Let's do the math:
$500usd x 15nights (normal season) = $7,500usd
$7,500usd - $600expenses = $6,900usd
$6,900usd * 70% profit sharing with my airbnb manager = $4,830usd
$4,830usd x 2units = $9,660 net profit per month
$9,660 x 12months = $115,920usd per year net profit
So the capex for land acquisition, construction, interior design, swimming pool construction, air conditioner, electronics like tv etc is $250k give or take. Annual net profit is $115,920usd. So that gives you around 45% - 50% annual roi give or take.
My question to you is, I've looked around the investment opportunities in Kuala Lumpur and I can't find one with this much roi. It's like I have found the holy grail. The closest investment opportunity I found is called Balitecture in bali. Actually I'm copying their bali themed interior design home and make one for my airbnb. Their roi is much higher since bali is more touristry.
So my question is, is this as high as it can get or there's higher returns in terms of property and airbnb?
I'm also thinking of doing like balitecture where I build airbnb villas for foreigners to buy the property and they can earn the profits.
TL;DR: $250k investment, 50.5% annual ROI ($100k USD per year net profit)