No Money for Real Estate? 2 Side Hustles You Can Use to Fund Your First Deal

Ashley:
That is Actual Property Rookie episode 294.

Ava:
We have been making about 10 grand a month with sofa flipping. On common, I might say in the event you’re like constant and devoted, you could possibly do wherever from 2 to five every week.

Josh:
You don’t wish 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 identify 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 convey you the inspiration, motivation, and tales you should hear to kickstart your investing journey. And Rookies, we bought a terrific, nice episode for y’all immediately. We’ve been torn round with this idea within the background for some time now, however one of many greatest obstacles or challenges that we hear from aspiring buyers is the capital that’s required to get began. Whereas there are specific sorts of actual property investing or methods the place you will get in for little to no capital, a whole lot of occasions you want some money to get began. And we thought what higher method to overcome that impediment than convey 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 immediately we’ve bought Ava Yuergens and Josh Janus to return again and speak about their facet hustles and the way they use that to gasoline their actual property enterprise.

Ashley:
Then on the finish of the episode, we sort of break down three completely different criterias that we’ve set as to the right way to weigh out these two facet hustles. And the primary one is upfront capital, earnings potential, after which passiveness, what’s the time dedication. After which we sort of threw in a fourth one there too as to, what’s the threat? How a lot cash might you lose on this? So be sure you guys hear during and sort of verify these out. Possibly one in all these facet hustles shall be nice for you, guys. Be certain that to go away a assessment on YouTube or wherever you might be listening and tell us in the event you like these Aspect Hustle episodes. I feel they’re nice for everybody listening, but in addition when you’ve got youngsters and also you need them to begin earning profits someway, this can be a terrific episode to have them hearken to.

Tony:
Yeah. And actually, that was a part of how this complete episode got here to be, was as a result of my son’s 15 and he’s making an attempt to save lots of up for his automotive proper now and he’s debating on these completely different facet hustle concepts and we thought it’d be cool to listen to firsthand from of us. So perhaps we’ll get my son Shawn in one in all these episodes sooner or later as properly so he can interview some of us firsthand.
However just some fast housekeeping issues earlier than we soar into Josh and Ava’s episode. For those who 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 one in all our favourite sorts 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 assessment on Apple Podcasts. The title of their assessment is My Lighthouse within the Storm. It’s a really deep and touching title, however Nico and Casey say, “There’s 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 threat and the potential for dropping giant sums of cash irrespective of the place you determined to go. Worst of all, you’re feeling such as you have been in it alone. BiggerPockets and significantly the Actual Property Rookie Podcast has been my guiding mild. 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 good work.”
Nico and Casey, most likely one in all my favourite opinions I’ve learn as of late. We respect that. For all of our Rookies which can be listening, in the event you haven’t but, please do depart us an sincere ranking assessment on no matter platform it’s you’re listening to. The extra opinions we get, the extra of us we will attain. And extra of us who attain, extra of us we may also help.

Ashley:
Ava and Josh, welcome to the present. Thanks a lot for taking the time immediately to show us about your facet hustles. I wish to begin off with you guys telling everybody slightly 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 soar 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’re going to be educating us immediately?

Ava:
Yeah. So hello, my identify’s Ava Yuergens. I began an actual property investing firm after I was 15 with my now fiance, Ben. We have been capable of purchase 900K in residential actual property earlier than I graduated highschool. And now, principally we have been capable of purchase a whole lot of actual property due to this facet hustle known as sofa flipping, which we are going to speak extra about immediately.

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. Principally I used to be DoorDashing as I’ll speak about later in faculty, probably not understanding what my journey was going to be. I used to be listening to the BiggerPockets Podcast and listening to all their academic materials concerning funds and actual property, and that led into the place I’m immediately.

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 wish 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 related. So Josh, how did you even hear about your facet hustle and doing DoorDash?

Josh:
Yeah, I didn’t actually wish to work a standard job. I needed to work a job the place I might perhaps hearken to podcasts or audiobooks or do one thing whereas working to attempt to enhance my total schooling. So I used to be simply sort of Googling what might you do. I had a automotive, I had some cash saved up, however I didn’t have something specific. I feel some Uber Eats adverts popped up. I used to be like, “Oh, perhaps I’ll strive that out.”

Tony:
Josh, it’s such a bizarre world that we reside 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 individuals can use via that sort of stuff. So that you hear about DoorDash. I imply, how outdated have been you on the time while you began?

Josh:
18 or 19.

Tony:
I imply, as an 18 or 19 12 months outdated, was there any hesitation about driving round your native metropolis delivering meals to strangers? I feel for lots of people, that may be a part of the hesitation round DoorDash. I may 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 slightly bit. Simply navigating, like determining the place to go. Some individuals’s residence complexes or constructing preparations may very well be difficult to someone that isn’t skilled to it, I suppose. So which may make individuals nervous.

Tony:
So let me ask this, man. Who do you’re feeling is the best particular person to take up the facet hustle? What are a few of the expertise or traits or instruments that somebody must be profitable doing this?

Josh:
I feel it’s someone that’s self-driven since you actually solely receives a commission for as a lot as you’re employed. However on the identical time, you could 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 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 certain. It was positively the scheduling as a result of I had lessons in the course of the day and I needed to seek out one thing that I might generate income with after faculty or on the whole, between 5:00 and 9:00. I don’t wish to be out too late. After which I additionally needed to have the ability to both hearken to books, audiobooks, podcasts, et cetera. And this job permits you to do that just about all the 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 while you’re obtainable to work? Do it’s important 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 upfront as a result of it’s aggressive. Wherever hours was working, you possibly can simply go online and begin working and also you don’t actually have to inform anyone while you’re going to do it. So it’s sort of the last word stage of freedom.

Tony:
Josh, this isn’t essentially concerning the facet hustle, however you talked rather a lot about eager to have the liberty to hearken to podcasts and all this different stuff. Simply out of curiosity since you mentioned you have been 18, 19 on the time, what sparked that preliminary curiosity for you?

Josh:
Yeah, I’ve all the time been sort of entrepreneurial. I made duct tape wallets, bought footwear, bought digital forex. I sort 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, finally I’d determine one thing out.

Tony:
I 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:
You probably have a automotive that’s throughout the final 10 years, I imagine that’s their steerage. And you’ve got a legitimate driver’s license and you’ve got sufficient cash to pay for fuel to start with, that’s actually all you want. You possibly can borrow someone else’s automotive and hire it, however yeah.

Ashley:
I didn’t notice that you just wanted to have a automotive throughout 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 threat 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 sort 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 hire you a automotive. They deal with all the upkeep and the service. So only for anybody else that’s considering of… Even in the event you don’t have a automotive, a few of these gig based mostly issues will really offer you a automobile and then you definitely 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 while 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 might’ve made if I accomplished the supply. I feel it was each. I may very well be mistaken, however…

Ashley:
Oh, that’s attention-grabbing. Okay. So Josh, you’ve began your gig. Have been there some other sort of startup prices in addition to having a automobile and having to spend cash on fuel?

Josh:
For those who purchase a magnetic factor to place in your automotive by your entrance windshield, that’s very useful. So that you’re not consistently trying down, set of headphones, have some snacks, have some water in your automotive, and simply be prepared to simply reside in your automotive for a pair hours a day.

Tony:
Principally, 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 might most likely begin earning profits with this facet hustle tonight if I needed to?

Josh:
Yeah. The precise registration enroll 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 generate income instantly. You receives a commission out as soon as every week, so that you wait a pair days to truly get it. However you should study what is an efficient supply to take and what isn’t. So ensuring persons 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 foul 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 it’s important to find out how like… You don’t wish 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 rather a lot higher utilization of your time. So I feel DoorDash actually permits you to study the worth of time as properly.

Ashley:
So can you see? Like when an order is available in, can you see all of that info as to what the tip shall be, the place the meals is that you just’re selecting 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 conceal the ideas. You possibly can go on Reddit and different boards and determine how they conceal it and study it. However for probably 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 while you settle for it, you possibly can see all the knowledge 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, “For those who’re selecting up a number of deliveries, go right here, then right here, then drop off on this sequence”? Or do it’s important to determine that out your self?

Josh:
It does try this, yeah. For those who’re in an space, in the event you’re in a metropolis or someplace busy, it really works very well. For those who’re sort of doing it in the course of nowhere slightly bit I used to be doing, it’s not as nice, however yeah.

Tony:
That’s fairly cool. Ash, I don’t assume I’ve ever shared this with you earlier than both, however I’ve such a colourful historical past. However after I was in faculty, 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 part startups and we have been making an attempt to basically be the kayak for deliveries. So in the event you went to Tumee, you’d put in what you needed after which it could provide the greatest value 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 completely different belongings you did.

Tony:
All proper, Josh, so subsequent query for you right here, brother. And this may be a foolish query, however how many individuals are in your group to do that DoorDash factor? Are you all the time by your self? Are you tag teaming with a buddy? What does that appear like?

Josh:
I had a good friend that did it together with me, so we might be on calls generally. However the best way to that I grew it was I began to make use of a number of apps on the identical time. After which as soon as I bought the hold of that, I really used a number of telephones to get completely different orders. And also you attempt to line every thing up. You don’t wish to have individuals wait too lengthy for his or her meals. You bought to be strategic with it. However in the event you do it proper, you are able to do fairly properly 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 telephone?

Josh:
Since you might doubtlessly get two related supply requests on two completely 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 identical time on the primary telephone. So you possibly can sort of stack deliveries that means.

Ashley:
So it’s virtually such as you’re two individuals then? You’re signed in on beneath completely different logins to the app?

Josh:
Yeah, you’re basically two individuals. Yep.

Tony:
So what’s probably 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 completely different deliveries on my automotive as soon as. I feel that was my max.

Ashley:
Properly, all I might 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 wish to sort 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 concerning 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 probably the most intriguing one.

Tony:
Simply, Ava, I feel everybody understands what DoorDash and Postmates are, however for folk 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 then you definitely search for couches that persons are promoting which can be simply underpriced or perhaps want a clear and you could possibly promote it for larger. However then you definitely principally simply make your supply. You possibly can 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 then you definitely take actually good photos and then you definitely add it again on these apps for only a larger value.

Tony:
So that you’re actually virtually like flipping a home, however you’re flipping a sofa. You’re flipping furnishings that individuals have. That’s wild. So who is that this facet hustle for? What are a few of the expertise or traits you should achieve success with sofa flipping?

Ava:
I might say sort of like DoorDash, you determine what couches are going to be probably the most worthwhile and what ones simply aren’t value your time. I might say it’s not essentially a ability, it’s simply one thing you study over time. However I might say you do must have some muscle, have some meat in your bones as a result of couches are actually heavy, so that you positively want to have the ability to carry it up. However I’ll say you are able to do it with only one particular person. You possibly can both get the proprietor of the sofa that can assist you really get it into your automobile. Or there’s a facet sort of hack. You simply put one find yourself on like when you’ve got a truck, you set it within the truck mattress and then you definitely go round on the opposite facet and carry the opposite finish and simply push it in. So it’s doable to do it with only one particular person, 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 sensible 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 after I resell it on the again finish”?

Ava:
Yeah. So over time you’ll notice which couches promote the quickest. The place I reside personally, everybody loves large 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 will discover a grey sectional for 200 bucks, we might most likely promote it for 1,200 if it’s good high quality, if it’s massive. So you’ll study over time which couches promote one of the best. It’s completely different in every market, however for me personally and for lots of different completely different locations within the US, grey sectionals do very well. After which it’s also possible to take 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 it’s important to clear up the sofa, take that under consideration as a result of to wash up a sofa, it might take wherever from 10 minutes to an hour.

Ashley:
For that 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? Have been you going up and seeing what issues have been promoting for on Fb Market or OfferUp? How did you study 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 reside. And in addition we watched a whole lot 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 wish 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 a whole lot of trial and error, but in addition some technique that you just simply sort of study over time.

Ashley:
And while 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 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 engaging as a result of it might make some huge cash. I imply, you’re making wherever from on common 200 to $700 an hour. So it’s a terrific return on time.

Tony:
After which Ava, what’s the price of entry? If I needed to get began sofa flipping immediately, what sort of capital do I must put as much as get began?

Ava:
So you will get couches at no cost or 100 bucks? What we did for our first one is we bought it at no cost and we already had the truck so it didn’t price something. However in the event you don’t have a truck, that is the place it could 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 large. You bought to have a way of transportation. The one means you possibly can work round not having a truck is borrowing somebody, like in case your grandparents have it, your kinfolk, 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 might say having a truck is fairly necessary.

Tony:
I didn’t even notice. So that you’re saying, Ava, that at occasions you’d discover couches that individuals have been giving freely at no 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 at no cost, they’d be actually upset as a result of generally 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 at no cost.

Ashley:
There most likely are individuals although that simply wish to do away with it and so they’ll give it at no cost simply to have someone haul it off of their property in order that they don’t should get rid of it. The place I reside, there’s like a city dump and so they have trash day each on occasion the place you possibly can convey home equipment, issues like that, and it’s important to load up the trailer of all of the stuff after which drive it there and take it to the dump. I might see if individuals don’t have a truck, they don’t have a trailer, they actually don’t have any means of getting it there, plus it’s an inconvenience to should drive there. So I might positively see the worth of discovering these people who simply don’t wish to do away with the sofa themselves, that they’re prepared to offer it away, simply have someone haul it.

Tony:
I opened up Fb Market on my telephone 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, generally they’re free when both they’re simply actually unhealthy or they want clear or perhaps they want identical day pickup or one thing like that. And in addition we’ve been capable of get couches at no cost by… It’s similar to actual property. Like a quick shut, you will get a reduction. Similar with couches. You’re like, “Similar day pickup? Oh, that’s like 100 bucks off.” So yeah, it’s actually similar to actual property.

Ashley:
Let’s go into the sort of that negotiating slightly bit, as a result of with DoorDash you actually can’t negotiate. You’re just about advised what the fee is. However so far as negotiating couches, what are a few of your ways for that?

Ava:
Yeah, so like I simply talked about, identical day pickup is big. Individuals simply normally after they submit it, they only wish to do away with it. So identical day pickup’s a terrific one, and you will get a pair hundred off for that in the event you’re fortunate. Often it’s like 50. Additionally, you possibly can simply perhaps bid towards different individuals. In the summertime is while you’ll normally get in bidding wars as a result of everybody’s in search of new furnishings. And clearly, shopping for a brand new sofa, you’re paying a pair thousand. After which on Fb Market you will 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 technique 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 capable of up the acquisition value by 50 to 100.

Ashley:
So alongside together with your startup price, while you take these couches, it’s normally you’re most likely not promoting them identical day. So do you have got a storage unit that you just’re paying for? Or the place do you retailer the couches till you’re really capable of 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 might 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 in addition they, generally, they only have a stench of somebody’s residence, even when it’s not unhealthy, it’s simply… I don’t know. In order that they needed them out. So finally we did get a storage unit. I imagine our storage unit is a couple of hundred one thing a month. However you possibly can match a bunch of couches in ours. It’s like ours isn’t very massive, however we simply stack couches on prime of one another.

Ashley:
After which do you supply supply or do you have got individuals simply come proper to the storage unit and choose 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 normally gained’t do it except we’re really getting value 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 a good 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 slightly bit, however for our first funding we did a 50/50 partnership cut up with my dad and mom. And in the event you add up the down cost, closing prices after which any restore prices, and then you definitely 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 objective of this episode is to point out our listeners what’s doable while you get a good facet hustle so that may generate some income. So let’s return to that first sofa, Ava. You mentioned that you just bought that first sofa at no cost. How lengthy did it take after you bought that sofa to truly get your a refund from promoting it?

Ava:
So it did promote identical day after which we delivered it the day after. However we bought it at no cost. And once more, with the ability over time, you notice what you possibly can really value it, however we simply needed to ensure we bought 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:
Often it’s simply Venmo after which generally simply money.

Ashley:
So while you did that first transaction, how a lot time did you really put into it with selecting up that free sofa, delivering it? Did it’s important 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 might 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 choose it up, clear it, take photos. After which really one thing I do wish to point out, once more, with the ability is over time you’ll notice the right way 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 you make clear issues like colours. After which additionally all the time embody measurements like peak, width, and size, as a result of persons 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 might say all in all, because it was our first one, it took slightly 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 properly, however we’ve 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 sort of change gears. You talked about you and your fiance, however is there anybody outdoors of the 2 of you? How many individuals do you should make the facet hustle of sofa flipping a sensible purpose 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 truly do it, you simply want your self. Clearly it’s going to be simpler to carry 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 now have some extra questions for you, guys. So Josh, let’s return to you. Are you able to recount a loopy second? Possibly it was an interplay with the client, a giant order you had, or perhaps one thing went mistaken. Are you able to sort 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 a giant gate. So I had the code and I bought via the gate and it was 1 / 4 mile driveway on this large 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 realize what you need 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 taking place after I was doing this as a result of I might have simply carried out 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 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 state of affairs may go?

Josh:
Fortunately, nearly all of what I used to be doing was throughout COVID, so really I didn’t meet too many individuals, however I’m certain 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 bought to, who you obtain 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 impulsively we have been going out the door and their cat simply jumped proper out of the sofa. However there’s this… Yeah, so we virtually took their cat. However there was this one time we have been going into town downtown. I don’t know, it was sort 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 impulsively 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. Actually, 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, in the event you’re going into the homes to get couches, what are some methods to sort of defend your self? I do know at this one property that I’m at proper now the place I’ve been working rather a lot, we’ll order groceries right here as a result of we’ve a full kitchen and every thing. 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 realize might inform they’re unsure in the event that they’re in the best 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 choose 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 tremendous. I’ll beat him up. Don’t fear.” So I’m all the time with Ben after 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 selecting that one up. I’m not going there.”

Josh:
I might make the most of the ideas as a means of judging the world. So if I’m delivering $60 in meals and also you’re giving me $2, it’s like I’m most likely not going to go over there.

Tony:
That’s attention-grabbing. I don’t even assume I ever observed what the tip is as a result of DoorDash simply has a default tip quantity. I don’t assume 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 modify your tip quantity on DoorDash after you’ve submitted your order?

Josh:
You possibly can change it after. I’ve had each generally 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 when it comes to 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’re feeling you could possibly sustain doing DoorDash as a facet hustle?

Josh:
I feel it pairs very well with a W2 job or one thing the place you possibly can work at night time or perhaps you’ll work on a Tuesday or a Saturday morning. I feel it’s sustainable so long as you wish to do it.

Ashley:
And Eva, what about you for sofa flipping? I might assume that perhaps lifting couches might take a toll in your again finally, however what would you say the longevity is for doing sofa flipping?

Ava:
Yeah, I might say you possibly can harm your again, so you bought to watch out. However so long as you’re match sufficient and you’ll carry heavy objects. And in addition, I suppose if we’re speaking about when you’ve got a job whereas doing this, a whole lot of the occasions the one draw back about sofa flipping actually is it’s probably not by yourself time. It’s each time 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 it’s important to be consistently your telephone, refreshing the web page in orders to textual content the particular person instantly like, “Oh, I need 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 might say it’s good for the weekends and stuff. However yeah, longevity sensible, 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 accurately, you have got a bunch of digital assistants in your different enterprise. However for a facet hustle, do you assume you could possibly rent a digital assistant to principally simply comb via listings every single 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:
Positively. I positively assume you possibly can as a result of in the event you simply plug within the location, anybody can do it from wherever. So for certain.

Tony:
Man, now my head’s spinning. Might I construct a sofa flipping empire the place I’ve VAs throughout each single-

Ava:
Individuals do. Individuals have large warehouses and purchase them at wholesale. It’s loopy. It is 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 when it comes to consistency of earnings, since you mentioned individuals aren’t posting couches all day every single day. So I suppose what number of couches might you flip in a month? What’s the common quantity that somebody might anticipate to do? Am I flipping a sofa every single day? Is it as soon as every week? What does that appear like?

Ava:
I might say it is determined by… Clearly in spring and summer season, persons are transferring, so it’s extra frequent. However on common, I might say in the event you’re constant and devoted, you could possibly do wherever from two to 5 every week. So simply from a earnings perspective additionally you could possibly do much less couches, however simply increase the worth larger, simply all that sort of stuff. However we have been making about 10 grand a month with sofa flipping, particularly in the course of the summer season once we didn’t have faculty.

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 a whole lot of couches in a month. 15 couches a month, that’s like a sofa each different day. That’s a whole lot of quantity. I didn’t notice there have been that many couches on the market. I ponder if it’s considerably market dependent.

Ava:
It’s.

Tony:
Such as you most likely should be in an even bigger sort of metropolis to get that sort of quantity. Whereas in the event you’re in a extra rural or distant space, the quantity of couches may 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 ponder what that appears like.

Ava:
Yeah, I agree. It’s actually market particular as a result of we reside proper outdoors Milwaukee, so there’s a whole lot of couches on the market on a regular basis.

Ashley:
Josh, what does your earnings appear like on a foul month, month, and the way lengthy are you really spending time driving and what number of deliveries on common would you say?

Josh:
Yeah, while you begin out, you should study what orders are good to take and what aren’t. So you possibly can most likely be round $15 an hour, perhaps 20 to start with. However as you sort of choose up the tempo, you study 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 persistently. In fact it’s market dependent. I sort of did it in an space the place there have been three primary purchasing facilities with 5 to 10 eating places at every, and I sort of simply cycled via these. However it’s sort of most likely averages round 30.

Tony:
So Josh, you mentioned 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 each day? What’s the frequency at one location?

Josh:
Yeah, I imply, you could possibly most likely do 10 to fifteen at one restaurant and virtually simply be their supply particular person throughout all the day. And bonus, you really, in the event you begin to make mates, they provides you with the meals that no one picks up and you will get a bunch of free lunch and dinner. I imply, I had virtually each single main meal lined at no cost.

Ashley:
That’s one other price saving tip there to save cash not having to pay for meals in your meals. Properly, that’s superior guys. I wish to convey 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 carried out in a different way to make your facet hustle perhaps extra worthwhile, perhaps extra passive or environment friendly? Ava, let’s begin with you.

Ava:
Yeah, so I might most likely say that now we go… We set a sure profitability purpose. For instance now, if a sofa isn’t going to make us 500 throughout the hour, we’ll most likely not get it simply because we’ve our different companies now. So yeah, we’ve a purpose. 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 might say I want sooner I might’ve simply gone for the larger fish as a result of at first when a sofa was priced at $400, it could sort of be scary to purchase. However now understanding what I do know, I want I might’ve purchased a few of these couches as a result of if it’s a grey sectional and it’s priced for 400, properly you could possibly 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 after I was used to getting couches at no cost. So I say one thing I want I knew sooner or now I do know is simply you don’t should be petrified of the larger value 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’ve. We now have damaged even earlier than. A variety of the occasions it’s as a result of we have been 16 and actually nervous. So when the photographs seemed actually good and we might go to the home, we’d be scared to say, “Oh, nevermind, I gained’t need it anymore.” So we might simply take it, which finally we realized to be like, “No.” However yeah, so we’ve. These clearly are majority of the occasions, 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 ponder for you, have you ever ever misplaced cash on doing DoorDash? For those who seemed up your week and perhaps what you spent on fuel, it didn’t equate to what you really made in the course of the deliveries. Has that ever occurred?

Josh:
No, I wouldn’t lose cash that means, however generally you’d expect a money tip. Like this one supply, I drove virtually 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 aggravated. 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 sort of shut this out?

Ava:
I do. Do you have got a DoorDash hacker secret that nobody else is aware of that you just assume it could be attention-grabbing to share?

Josh:
They do catering now, so I’m unsure how to enroll. However in the event you might simply ship catering orders. And I do know one man that does it and he was doing very well. A number of apps. Individuals don’t actually do that fairly often. After which go on Reddit and attempt to study the ideas like how they conceal their ideas. I’m not going to elucidate it right here, however principally you possibly can determine like, “Ooh, this one’s going to be over $12′ or one thing like that.

Tony:
Josh, I really feel like the 2 telephone 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 have got a favourite between these? Do you favor DoorDash or have you ever tried Uber Eats or Postmates?

Josh:
I most likely favor Uber Eats to be sincere. It’s so market dependent within the hours in the event you actually get within the weeds on it.

Tony:
Dude, I ponder in the event you may very well be an Uber driver who does Uber Eats and Uber on the identical time. So that you’re selecting up individuals, however then you definitely’re like, ‘Hey, I bought to cease by McDonald’s,” choose up this meal and then you definitely drop off the meals in and the particular person. Superior. Josh, what about you Have any questions for Ava on the sofa flipping facet?

Josh:
Positively, yeah. This is sort of a comply with up query after this. How typically do you see the identical sofa or one actually related?

Ava:
After I’m shopping for them, simply how typically do I see a repeat sofa that I’ve seen earlier than?

Josh:
Yeah, I’m asking as a result of perhaps you could possibly take clean or template images after which virtually pre-sell them.

Ava:
We now have carried out that.

Josh:
Good.

Ava:
We now have carried out that. Oh, we bought in hassle 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 seemed grey within the photos, which individuals like, but it surely was inexperienced in particular person. This type of bizarre delicate, inexperienced grey. However we put within the description it’s inexperienced. Don’t fear, I wouldn’t try this. However the photos that she took simply seemed so significantly better. So we simply uploaded them. Everybody, because it was so well-liked, individuals have been making an attempt to get it, everybody’s coming like, “Somebody already tried to submit this for a whole bunch of {dollars} much less.” After which different individuals have been commenting, “Admire the hustle child.” Yeah, however we’ve reposted the identical photos, however we haven’t ever used inventory images as a result of normally individuals assume 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 when it comes to methods you could generate some extra capital to fund your actual property enterprise. And like we mentioned on the prime 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 immediately, give me the 30-second step-by-step recreation plan of the right way to get began if I wish to do it this afternoon.

Josh:
Be sure to 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 handle. Use all the true info and map out the place you’re going to attempt to concentrate on. For those who don’t know your native space very properly, attempt to see the place all of the shops are and hit these areas up. After which perhaps even take a day and sort of drive and stroll via a few of the eating places and determine which of them appear to be operating effectively and which of them aren’t. And attempt to concentrate on those which can be faster and simply get going.

Tony:
Ava, how about you?

Ava:
Obtain Fb Market. Be sure to 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 photos 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 realized the precise invaluable expertise which have sort 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 expertise sensible, this was our first time ever doing gross sales and earning profits and negotiating. I say we realized lot of that. And in addition me and Ben are each sort of extra introverted, so this positively 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 fairly great way of perhaps being eligible in your first home hack in the event you do it for 2 years as a result of you possibly can set up two years of tight earnings after which it’s also possible to really… I’m not a tax advisor, however you rack up a whole lot of miles and you’ll write it off and really not pay that a lot in tax on the earnings. However I principally used it to fund a number of of my first offers and I used to be capable of hearken to a ton of podcasts and books and set myself up rather a lot higher for after I was prepared to begin making some investments.

Ashley:
Superior. Thanks guys a lot. Josh, are you able to inform everybody the place they’ll attain out to you and discover out some extra info?

Josh:
Positively, 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 could possibly 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 identify, simply so individuals know the right way 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 to return and hearken 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 supplied a ton of worth immediately with the facet hustles.

Josh:
Thanks.

Ava:
Thanks.

Ashley:
Properly, that was actually attention-grabbing, 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 largest sofa flipping enterprise in America by the tip of the 12 months. Yeah, it was actually cool. I imply, Ava and Josh, I feel each gave completely different views. I feel what’s so cool, Ashley, is that there’s so many various 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 extra income to place in the direction of your first actual property deal.

Ashley:
Yeah. So we thought for this section we might sort of weigh these facet hustles with three completely different components. So the primary one is, what’s the upfront capital? How a lot cash do you should begin the facet hustle? What’s the earnings potential? How a lot are you able to really make? After which is it passive or is it going to take up a whole lot of your time? What does that dedication appear like? So so far as the upfront capital, I really feel like these have been really very related, the 2 facet hustles. What I might see is that you just wanted a automobile or entry to a automobile being sort of the principle precedence of those two facet hustles.

Tony:
Yeah. And I’d say nearly all of of us 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 outdated. After which with the sofa flipping, you most likely want a truck or at the very least perhaps like a minivan the place you could possibly 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 it’s important to preserve.
So our subsequent class is the earnings potential. So so far as these two completely different hustles, I actually assume sofa flipping has a means better potential at earning profits than DoorDash as a result of I really feel like DoorDash, you’re sort of restricted as to how a lot you possibly can really drive. And as Josh talked about, you will get actually good at logistics and have two telephones and completely different apps on them and attempt to coordinate as greatest as doable, 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 then you definitely’re going to choose up. And sure, there’s a max as to what number of couches you possibly can really choose up in a month. However with the sofa flipping, it appeared that per a sofa, there was a better span or better hourly fee that they have been getting in comparison with doing DoorDash.

Tony:
Yeah, I’d agree with that fully. I feel that the upward earnings 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 doubtlessly try this with DoorDash and Uber Eats and Postmates, however the time dedication will most likely be considerably larger to attempt to get to that stage of earnings. So yeah, I feel I’m going to offer sofa flipping a 3 relating to the earnings potential. And I’d most likely give Uber Eats a 2.

Ashley:
Yeah, I agree with that. I feel there’s one thing else that we might put into this class too as to your threat additionally. As to DoorDash, there’s not a whole lot of threat. You’re probably not placing up cash up entrance, the place with sofa flipping, you could possibly be spending $400 to purchase this used sofa and then you definitely promote it at a loss for 200 and now you’re out $200. The place with DoorDash you might be out slightly bit on fuel cash, however Josh mentioned that’s actually by no means occurred the place he hasn’t at the very least made again his fuel cash. However so far as his time, he might need pushed someplace and ended up being $5 per hour he ended up getting paid and making. So I feel that it’s necessary to weigh that distinction too.

Tony:
That’s a terrific level, Ashley. Yeah, there’s no threat actually to DoorDash as a result of once more, all you bought to do is soar in your automotive and perhaps you spend slightly little bit of fuel, however that’s it.

Ashley:
And in addition I might say you’re extra assured to truly have enterprise the place sofa flipping it is determined by what’s being listed in your market, how properly are you at negotiating, how properly what a sofa sells for and what it’s really value. So a whole lot of analysis and a whole lot of studying. The place DoorDash, you’re given the enterprise, it’s there and you’ll take it above and past like Josh mentioned and actually determine the tip system. However at the very least 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 sort of have some pluses and minuses to every. Josh with DoorDashing, I feel the profit from a time perspective is that you just management while you work and while you don’t. For those who simply wish 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 every single 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 mentioned, you’ve bought to sort of be monitoring that all through the day as a result of in the event you’re late on the set off, you could possibly miss what’s a very whole lot. So I feel from a flexibility standpoint, I do like DoorDashing slightly bit greater than the sofa flipping.

Ashley:
Yeah. I feel so far as the analysis, the evaluation, DoorDash is I feel rather a lot 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 truly study and perform some research 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 positively can take up a whole lot of time, particularly with simply getting expertise of shopping for and promoting to get good at it and in addition negotiating.
So so far as passiveness, I feel mentally DoorDash could also be extra passive. You probably have one app, you get the alert. Okay, that is the place it’s important to go choose up the meals, then you definitely’re delivering it. The place with sofa flipping, it’s important to actually assume, “Is that this sofa value it? Is it going to be a deal? How far is it going to take me to choose it up?” And all these various things which can be sort of aligned with that. So I suppose so far as passiveness, so far as time dedication, what do you say your rankings are for that?

Tony:
Yeah, I suppose only one final thing 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 sort of scale back that point dedication your self. So when you’ve got a VA that’s oversees and their complete job is to undergo all the Fb Market listings, all the OfferUp listings, regardless of the little platform you possibly can consider and so they’re simply monitoring that, in search of 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, then you definitely’re simply going on the market and selecting it up and validating all that stuff.
So clearly that’s slightly bit extra concerned. However I might say if we exclude the digital assistant factor, I might most likely give the sofa flipping a 1 simply because I feel that there’s slightly bit extra friction there. And I might 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 could possibly rent every thing out and nonetheless make slightly little bit of revenue on the finish of it, however I feel the individuals which can be most likely working for you’re most likely going to catch on like, “Why am I going and selecting up these couches for someone else? I can do that myself.”

Tony:
“I can do it myself.” Yeah.

Ashley:
Yeah. However so grateful to have these two visitors on immediately to speak about facet hustles. Earlier than we shut out immediately, I do wish to give a shout-out to an actual property Rookie, gfrproperties19 on Instagram. He used the hashtag #realestaterookiepodcast and I noticed his submit the place he really used the BiggerPockets calculator reviews on biggerpockets.com and he confirmed us a pattern of an evaluation he did on a property not too long ago. And he mentioned, “Because the market has been evolving, we’ve needed to evolve our strategy to seek out our subsequent property. We at the moment are in search of a small multifamily property to accommodate hack as our mortgage phrases shall be extra favorable as rates of interest proceed to go up.” Then he requested for different individuals to remark as to other ways they’re having to evolve or pivot their technique and the way they’re analyzing offers. So go comply with @gfrproperties19.
And in the event you guys wish to submit a query, be sure you guys go to biggerpockets.com/reply and submit your query or submit your facet hustle so we will 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 shall be again on Wednesday with a visitor.