When Darrel and Patrice Maxam moved from Connecticut to Georgia in 2015, they were financially stretched to their limits. After putting everything into a down payment on their $249,400 home, they had just $1,000 left in their bank accounts and were struggling to cover their $1,400 monthly mortgage payments.
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But within a few years, the Maxams transformed their financial situation. They went from listing a single room on Airbnb to building a full-time short-term rental business that brings in between $30,000 and $60,000 a month. Here are the money moves they took to get there.
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Started Small
The Maxams’ first move was monetizing what they already had. Instead of panicking about not being able to afford their mortgage payments, they listed one spare room in their three-bedroom bungalow on Airbnb. Renting out one bedroom brought in about $1,000 a month in profit, nearly covering their monthly mortgage.
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Scaled Gradually
Once the Maxams proved that the rental business could be profitable, they began renting out their entire home. They could pack up every weekend during summer and vacate while guests were staying in their Atlanta home.
“If we only had $400, we were going to plan a trip for $400. We would go as far south as Destin, Florida, as far east as Mississippi, and as far north as the Carolinas and Tennessee area,” the couple told Business Insider.
Leveraged Strategic Partnerships
When the opportunity arose to partner with HGTV’s “Tiny House, Big Living,” the Maxams seized it. They built a tiny home in their backyard that brought in an extra $2,500 a month in profit.
Reinvested Profits
At this point, the Maxams were already hooked by the rental business. They reinvested their profits and built more units. They converted their backyard barn into a livable unit. A year later, they added three more units.
“After the fifth unit on the property, we were generating roughly $15,000 a month,” Darrel Maxam said.
Their Atlanta property has eight short-term rental units, their main house, a converted barn, three treehouses, and a triplex. They moved with their tiny home when they left Atlanta to explore more rental ventures.
They eventually sold the Atlanta property in 2023 for $655,000, a substantial increase from their original purchase price.
Applied the Cash Flow Positive Rule
With their Atlanta property success, the Maxams bought land in upstate New York to create a cabin village called Finger Lakes Treehouses. They partnered with Red Falls Timber to build five A-frame cabins, each costing around $65,000. These cabins bring in between $30,000 and $60,000 a month.
One of the Maxams most disciplined financial principles was their 18-month rule.
“We don’t touch a project unless we can be cash-flow positive within 18 months,” Darrel Maxam said.
This has helped them to avoid overextending themselves even as they continue expanding.
Be Patient
Perhaps the most important part of the Maxams’ journey was patience and slow growth. They didn’t rush to build the biggest properties possible. Instead, they started with what they had, used the proceeds they made to build the next property, and scaled gradually.
“Everyone wants to rush and rush and race to do the largest project, and they don’t know what they’re getting themselves into,” Darrel Maxam said. “The only advice I have to someone starting out like me is to stay small enough, long enough, because soon enough you’ll be big enough.”
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This article originally appeared on GOBankingRates.com: We Went From Being Broke To Making $30K a Month: 6 Money Moves To Get There
