A young kitchen installer who purchased a rundown lakehouse and transformed it into three separate waterfront units makes thousands of dollars a month by renting it out on AirBnB.
Mark Johnson, 24, bought the 70s-style property for $690,000 in March 2020 and renovated it over six months at a cost of $39,000. He now has the option of quitting full-time work thanks to his savvy investment.
Over the past four months the two rented units on the bottom floor have generated an average of $1750 per week, which is more than enough for Mark to pay his $560 weekly mortgage repayments plus the $230 weekly bills and utilities.
The units make a total of $7,000 per month, leaving nearly $4,000 for Mark to use as he pleases.
Mark, who lives in Lake Macquarie, told Daily Mail Australia his main goal was to own and invest in hundreds of properties to create a prime source of income, while teaching others different investing strategies on YouTube.
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In March 2020 Mark Johnson, 24, (pictured) purchased the old 70s-style property for $690,000 – which took six months to renovate for a total of $39,000 – and now has the option to quit working full time
© Provided by Daily Mail
When Mark bought the property, it was outdated and looked dull with exposed yellow brick and orange flooring. But the renovation brought it into 2021 with a modern upgrade.
The newly renovated 100sqm lakehouse now has three separate units with five bedrooms in total, three bathrooms and stunning views.
‘The renovation process was back-breaking work and a lot of problems came up, but as stressful as it was I always looked forward to working on it whenever I had free time,’ Mark said.
‘Everything from building wall frames, plastering walls, tiling floors and demolition was completed out of hours and on weekends.’
The two units on the ground floor are rented out on AirBnB while Mark lives in the third unit above.
‘I rent the rooms between $90 and $300 per night on Airbnb, depending on public holidays, weekends or a normal school night being the cheapest,’ he added.
In order to purchase the property at such a young age, Mark saved an impressive $100,000 by the age of 20 due to strict guidance from his parents.
Admitting he was never a keen saver but wanted to own a home, Mark owes a vote of thanks to his parents who taught him the value of money by forcing him to save throughout his teenage years.
After he started working full-time his parents gave him the option of paying rent or living at home free of charge, but he had to transfer 85 per cent of his income to their account and the full amount would be returned in four years.
‘This was difficult but as a teenager you can be reckless with money if you’re not careful,’ he said.
On top of saving, Mark also had extra income streams that helped him reach the $100,000 figure.
‘I had a YouTube channel and gained 100,000 subscribers by the age of 13 that paid me a small amount of passive income every month, as well as other side hustles including dropshipping,’ he said.
‘This all came to an extra $400 to 500 per month.’
He managed to accumulate the six-figure saving in only four years.
‘Dropshipping’ is a common method involves shipping products from the manufacturer directly to the customer without the supplier or retailer ever seeing it.
What is dropshipping?
Dropshipping is a retail fulfillment method where a store doesn’t keep the products it sells in stock
Instead, when a store sells a product using the dropshipping model, it purchases the item from a third party and has it shipped directly to the customer
As a result, the seller doesn’t have to handle the product directly
The biggest difference between dropshipping and the standard retail model is that the selling merchant doesn’t stock or own inventory
Instead the seller purchases inventory as needed from a third party – usually a wholesaler or manufacturer – to fulfill orders
‘Everything from building wall frames, plastering walls, tiling floors and demolition was completed out of hours and on weekends,’ Mark said
© Provided by Daily Mail
On top of the investment property Mark also invests in the stock market and cryptocurrencies, such as Bitcoin.
‘My only regret is not investing in shares sooner; I own shares in seven really amazing companies, I have been investing for about one year now and have already seen returns of 30 per cent,’ he said.
Mark said he learnt everything he knows about investing by watching videos on YouTube and talking to his Dad.
On top of the investment property Mark also invests in the stock market as well as cryptocurrencies, such as Bitcoin
© Provided by Daily Mail
Mark’s main word of advice to those wanting to save money for a house is to consider taking up side hustles or putting up a spare room on AirBnB to increase your total income.
He also said to ensure your savings are not easily accessible and researching how to invest in the stock market.
‘It’s too easy to dip into your savings if it’s just sitting in your bank account, so put it elsewhere,’ he said.
Mark has already purchased a second property using $100,000 in equity from the first property, which he is currently renovating and plans to add a granny flat to use as an additional AirBnB listing.
‘Side hustles’ to boost annual income:
Dog walking or baby sitting
Different investing options:
Exchange-traded fund (ETFs)
Australian Stock Market – ASX200
US Stock Market – S&P500