How to Buy Five Short-Term Rentals in Five Years

In This Article

Everyone hears “five Airbnbs in five years” and immediately pictures some kind of motivational speaker montage. You know the one:

• Scrolling Zillow at midnight with one eye open.
• Signing five mortgages while pretending you understand what “debt service coverage ratio” means. 
• Buying 37 throw pillows from HomeGoods because apparently that’s what makes a house “Instagrammable.” 
• Chugging cold brew like it’s a performance-enhancing drug. 
• Yelling “CASH FLOW” into the void and hoping the universe manifests a check.

And then year two hits:

• The hot tub breaks and costs more to fix than your first car. 
• Your cleaner quits via text at 9 p.m. on a Friday before a check-in. 
• The city changes the STR rules, and suddenly, you need a permit that requires a blood sample and your firstborn child. 
• You’re on your third “emergency” Home Depot trip this week, wearing the same hoodie you slept in, and you’re pretty sure the cashier recognizes you now.

So, no. Getting to five short-term rentals is absolutely not “buy five houses as quickly as humanly possible and figure it out later.”

That’s how people burn out, overleverage themselves into oblivion, and start posting desperate questions in Facebook groups at 2 a.m., asking if anyone has a “miracle pricing spreadsheet” that also fixes existential dread and poor life choices.

The real path to five short-term rentals in five years is calmer, smarter, and honestly way more repeatable than the Instagram version. It’s a mix of ownership, co-hosting, and economies of scale that don’t require you to sell a kidney or develop a caffeine dependency.

Here’s the step-by-step plan that actually works—without destroying your mental health in the process.

Why Your First Airbnb Should Feel Like Tuition (Not Your Retirement Plan)

Your first short-term rental is not your forever property, your brand, or the thing you’re going to feature in a glossy magazine article about your “real estate empire.”

It’s tuition. Expensive, sometimes painful, absolutely necessary tuition.

You’re paying to learn how guest expectations really work, which is to say they’re both completely reasonable and wildly unhinged at the same time. You’ll learn what breaks the most (spoiler alert: It’s always the thing you thought was “nice to have” but “probably fine”). 

You’ll figure out how pricing actually moves, and why your gut feeling is usually wrong by at least 20%. And you’ll discover what a good cleaner is worth, which is more than your ego wants to admit but less than therapy would cost if you tried doing it yourself.

Most importantly, you’re learning how to build systems you can actually reuse later without wanting to throw your laptop out a window.

Most people fail their first STR because they treat it like a retirement plan instead of a learning experience. They stretch to buy the prettiest property with the biggest mortgage payment, then try to operate it like a legitimate business with the budget of a kid’s lemonade stand. It’s a recipe for disaster—or at least a recipe for spending every Saturday at Home Depot looking for the right lightbulb while questioning every decision that led you to this moment.

The goal of the first STR isn’t to maximize profit and retire to Bali. It’s to build a playbook that works. A boring, repeatable, “I’ve done this before, and I know it works” playbook.

Because once you have a playbook, scaling becomes boring. And boring is massively underrated in business. Boring means you’re not constantly improvising. It means you can sleep at night. Boring means you might actually take a vacation without checking your phone every 11 minutes.

Year 1: Build Something Simple That Prints Money—Without Printing Stress

In year one, your job is not to create the Taj Mahal of short-term rentals or some boutique hotel experience that requires a staff of 12. It’s to build the simplest possible machine that prints money, without printing ulcers.

Here’s the actual recipe: Pick a market in demand, even when your listing isn’t perfect. You want a place where people are actively traveling, not one where you’re the only thing keeping the local economy alive.

Buy a property that’s easy to clean and maintain. This is not the time to buy the historic Victorian with original hardwood floors that need to be refinished every six months. You want the boring house that doesn’t fall apart when someone uses the shower.

Keep your design simple, memorable, and durable. You’re not designing it for Instagram. It’s for real humans who will spill wine on your couch and not tell you about it.

Set up your systems from day one: messaging templates, pricing rules, cleaning schedules, and maintenance checklists. Build these now or hate yourself later.

Learn the guest journey obsessively. What do they actually care about? Where do they get confused? What questions do they ask 47 times that you should just put in the listing?

If you do this right, you’ll end up with consistent reviews, occupancy, and confidence that you’re not completely winging it, as well as a repeatable setup you can literally copy and paste when you’re ready to scale.

And you’ll also have the one thing most investors never get: proof that you can run this business without being physically present for every single decision, which is the whole point unless you enjoy never sleeping or taking a day off.

The “tuition mindset” makes everything else possible. Skip this part, and you’re just collecting houses, not building a business.

Year 2: Co-Hosting Is the Cheat Code Nobody Wants to Admit Actually Works

Here’s where we take a hard left turn from the “normal” advice you’ll find in every other real estate blog, written by someone who read three books and bought one rental.

If you want five short-term rentals in five years, you need cash flow that doesn’t require buying more houses immediately and taking on more debt that makes your accountant nervous.

That’s where co-hosting comes in. Co-hosting is hands down the easiest way to scale your income in this space without taking on more debt, risking more capital, or convincing a bank that yes, you really do need another mortgage.

And I know exactly what you’re thinking right now: “I’m not trying to be a property manager. That sounds terrible, and I already have enough problems.”

Totally fair. I get it.

But co-hosting (when done right) is not traditional property management, where you’re fielding calls about broken garbage disposals at 11 p.m. and mediating neighbor disputes about parking.

If you do it right, it’s more like running an operating system. You build the messaging system, pricing system, cleaner and maintenance network, guest experience standards, and reporting cadence. And then you apply that exact system to other people’s properties.

You get paid to practice scaling, refine your systems, and figure out what works and what doesn’t before you risk your own money on property No. 2.

Most people skip this step because they think it’s beneath them, or they’re obsessed with “owning doors” like it’s some kind of status symbol. Those same people are also the ones posting in Facebook groups six months later asking how to afford their second down payment while their first property is bleeding cash.

Co-hosting can fund your growth in a way that buying another house simply can’t. And it teaches you the single most valuable skill in this entire game: how to run short-term rentals that you don’t physically babysit 24/7, like they’re a toddler who just learned how to open the fridge.

What co-hosting actually does for your five-year plan (besides make you money)

Here’s the real point most people miss: If you can co-host three to 10 properties while owning one, you start stacking benefits that compound way faster than just buying another property:

• Extra income that doesn’t require a down payment or a mortgage 
• Operational reps that make you better at this faster 
• Vendor leverage, because now you’re worth their time and attention 
• System refinements, because you’re seeing what works across multiple properties, not just your one special snowflake 
• Confidence in your numbers, because you’re not guessing anymore

Your first Airbnb taught you how the game works. Co-hosting teaches you how to run the game at scale without losing your mind or your savings account.

Also, your cleaners start actually liking you because you feed them more consistent work. Your handyman starts answering your texts faster because you’re not just “that one guy with one property.” And your pricing decisions get dramatically better because you’re seeing patterns across multiple listings in real time, instead of just staring at your own calendar wondering why nobody’s booking.

Economies of scale show up way earlier than most people realize. And they make everything easier, cheaper, and less stressful.

Year 3: Buy Your Second Property Later, Not Sooner (Yes, Really)

Most people rush their second purchase because they’re completely addicted to the idea of “owning doors,” and they want to tell people at parties that they have “multiple properties,” like it makes them sound sophisticated.

Then they end up owning two doors and exactly zero hours of sleep while wondering why their bank account looks like a crime scene.

Buying the second property later can genuinely be better than buying it sooner. Here’s why: 

• You’ll have more cash saved because you weren’t throwing everything at another down payment before you were ready. 
• Your systems will be tighter because you’ve had time to actually test and refine them, instead of just making stuff up as you go.
• Your vendor network is stronger because you’ve been working with them long enough that they actually return your calls.
• You’ll underwrite properties better because you know which numbers are real and which are fantasy.
• You’ll know what actually drives revenue in your specific niche, instead of guessing based on some pro forma you found on BiggerPockets.
• Your co-hosting income can help cover slow months on your owned property, which means you’re not panicking every time occupancy dips.

This is the boring truth that nobody wants to hear: The second purchase is dramatically easier when you’ve already proven you can operate at scale, even if that scale is co-hosting other people’s properties. It’s the difference between “I really hope this works, and I’m not making a huge mistake” and “I’ve literally seen this exact playbook work on 10 other properties, so I know exactly what I’m doing.”

That confidence is worth actual money. It helps you negotiate better, avoid bad deals, and sleep at night.

Year 4: Stack Smart, Not Fast (Because Fast Is How People Go Broke)

At this stage, you’re not “starting” anymore. You’re repeating a process that you already know works.

This is where growth stops feeling like complete chaos and starts feeling like an actual business, with systems and processes and maybe even some predictability.

In year four, your only job is to do two things:

1. Buy one more property. Now you’re at three owned, which is enough to feel legitimate, but not enough to drown.
2. Keep co-hosting, or transition into partial management if you want less day-to-day involvement and more strategic oversight.

This is also where you’ll feel the first real benefit of scale that makes you realize why you did all this work in the first place. You can:

• Bulk-buy supplies and actually save money. 
• Standardize amenities across properties so you’re not reinventing the wheel every time. 
• Reuse your guidebook and messaging templates without changing a single word. 
• Train cleaners once, and then copy that exact standard to every other property. 
• Negotiate better pricing with vendors, because now you’re actually worth their time. 
• Move faster on deals, because you already know what matters and what’s just noise.

You’re basically building a tiny hotel brand—without a lobby or matching uniforms or any emotional stability. But you do have a business that actually works.

Year 5: The Jump to Five Is a Systems Question, Not a Money Question

By year five, getting to five rentals is no longer about “can you find the next deal?” or “can you convince a bank to give you another loan?” It’s about three much more important questions:

1. Do you have the cash flow to support down payments without stretching so thin you can’t handle a single surprise expense?
2. Do you have the team to support more listings without you personally answering every guest message at 10 p.m.?
3. Do you have systems tight enough that adding another property feels like an addition, not a complete lifestyle change that requires you to quit your job and become a full-time Airbnb babysitter?

At this point, you can hit five properties in a few different ways, and honestly, they’re all valid:

• Option A: Own five properties outright. This is traditional, straightforward, and requires the most capital, but gives you the most control.
• Option B: Own three to four properties and co-host 10 to 20 for other owners. You still have “five STRs” in terms of operational experience and income, but they’re just not all sitting on your personal balance sheet, making your debt-to-income ratio look terrifying.
• Option C: Own two to three properties, but build a brand that’s actually worth more than the properties themselves through direct booking, repeat guests, content, partnerships, and systems that other people would pay for.

Most people obsess over “How many properties do I own?” like it’s a scorecard at a networking event. Real operators obsess over “How much infrastructure have I built?” Infrastructure is what makes five feel easy and makes 10 feel possible instead of insane.

The Real Secret: Scaling STRs Is Not a Buying Strategy. It’s an Operating Strategy.

If you take exactly one thing from this entire article, make it this: Buying properties is the fun part. It’s exciting, gives you something to post about on LinkedIn, and makes you feel like you’re making progress. However:

• Operating properties is the part that actually gets you paid and determines whether you succeed or fail spectacularly while drowning in debt and regret.
• The first Airbnb is tuition. It teaches you the game.
• Co-hosting is cash flow without debt. It teaches you scale.
• Waiting on the second purchase is discipline. It teaches you patience.
• Scale is systems, not hustle. It teaches you leverage.

And if you build it that way, five properties in five years doesn’t feel like a sprint where you’re constantly on the edge of disaster. It feels like a plan. A boring, repeatable, actually sustainable plan that doesn’t require you to sacrifice your sanity, relationships, or ability to sleep through the night without checking your phone.

And honestly? That’s the version worth building.