For many individuals, being $12 million in debt seems like an absolute nightmare. However for Michael Elefante and his spouse, it’s the value of monetary freedom.
In a latest X submit [1], Elefante instructed his story. He and his spouse walked away from six-figure jobs, borrowed a whole lot of 1000’s to purchase their first residence in Nashville, and listed it on Airbnb. The gamble paid off: the property pulled in sufficient cash to cowl the mortgage after which some.
Six years and 11 homes later, they declare to be incomes $50,000 to $100,000 a month from short-term leases. On social media, they showcase a way of life of household time, journey and simply “working one to 2 hours every week” — all whereas carrying thousands and thousands in debt from their a number of mortgages.
Their message is easy: as an alternative of fearing debt, use it to purchase belongings and let these belongings pay in your life. It is a daring technique — however is their enticing life-style a mannequin to observe, or a harmful guess that would collapse below the fallacious circumstances?
For many individuals, being $12 million in debt seems like an absolute nightmare. However for Michael Elefante and his spouse, it’s the value of monetary freedom.
In a latest X submit, Elefante instructed his story. He and his spouse walked away from six-figure jobs, borrowed a whole lot of 1000’s to purchase their first residence in Nashville, and listed it on Airbnb. The gamble paid off: the property pulled in sufficient cash to cowl the mortgage after which some.
Six years and 11 homes later, they declare to be incomes $50,000 to $100,000 a month from short-term leases. On social media, they showcase a way of life of household time, journey and simply “working one to 2 hours every week” — all whereas carrying thousands and thousands in debt from their a number of mortgages.
Their message is easy: as an alternative of fearing debt, use it to purchase belongings and let these belongings pay in your life. It is a daring technique — however is their enticing life-style a mannequin to observe, or a harmful guess that would collapse below the fallacious circumstances?
On the floor, the professionals are clear. Michael and his spouse leveraged debt to purchase income-producing belongings to create monetary freedom, permitting them to give attention to household, journey and experiences. For individuals who worth time and do not need to work the 9 to five grind, it is an interesting trade-off.
However the dangers ought to be examined. Carrying $12 million in debt means their success relies upon completely on Airbnb listings. Basing your earnings on one other platform’s whims is all the time dangerous — if tourism slows, laws tighten or bills rise, they’re nonetheless on the hook for all 12 mortgages.
Any of their properties might be impacted by pure disasters, which might restrict earnings that they rely on. Even one thing so simple as a pipe bursting might have an outsized affect on their finances.
And whereas the couple claims they work just a few hours every week, the truth is probably going extra advanced: managing a number of properties usually requires full-time consideration or the companies of an costly property supervisor. On high of that, Elefante has constructed a facet enterprise round instructing others tips on how to observe in his footsteps. He sells books, on-line programs and content material that stroll aspiring buyers by means of the method, which means that their workload could also be extra demanding than it seems [2].
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Most individuals cannot stroll right into a financial institution and not using a job and qualify for the $420,000 mortgage Elefante used to get began. It’s price noting that Elefante grew up in Chapel Hill, NC, a well-off space with robust colleges, attended the distinguished Elon College [3], and each he and his spouse had six-figure jobs earlier than they started their Airbnb enterprise [4]. That doesn’t make his success not possible to copy, nevertheless it does make it tougher for the common particular person to try to observe.
Airbnb can be unpredictable [5]. Cities throughout the U.S. are tightening short-term rental legal guidelines, and oversupply in widespread markets has already decreased bookings [6] and will minimize into host earnings. A recession or shift in journey patterns might shortly change the maths, which is a crucial consideration proper now when journey to the U.S. is down [7]. And, offloading these properties to get out of the mortgages if wanted may not be straightforward as rates of interest rise [8].
In the event you’re contemplating an Airbnb funding technique for your self, it is vital to start out small and maintain the dangers low. Take into account renting out a room or ADU (accent dwelling unit) in your present property first to check rental demand. This could additionally allow you to study the ropes earlier than taking up a complete mortgage.
Earlier than leaping in, ask your self:
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Can I afford the mortgage if bookings dry up?
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Do I’ve money reserves for repairs, vacancies or sluggish seasons?
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Am I snug being a landlord or paying another person to do it?
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What are the native legal guidelines on short-term leases?
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Are there any legal guidelines within the works that may affect short-term leases?
For most individuals, the most secure path to such a monetary freedom is gradual progress. Construct fairness in your present residence, save aggressively and scale up after constructing a monetary cushion. Whereas Elefante’s path is not not possible to observe, it is probably not as straightforward to copy as his on-line content material makes it appear.
Taking up thousands and thousands in debt can create a way of life of freedom, however it may well simply as simply backfire. The road between monetary independence and monetary destroy usually comes right down to the monetary assets that you simply begin with, timing and danger tolerance.
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[1]. @melefante6. X submit on Sep. 2, 2025.
[2]. Skool. “Michael Elefante”
[3]. Elon College. “2016 Baseball Roster”
[4]. Michael Elefante. LinkedIn submit on Sep. 12, 2025.
[5]. Bloomberg. “Cities Are Cracking Down on Quick-Time period Leases. Right here’s How”
[6]. Air Hosts Discussion board. “Tremendous Host & not one inquiry or reservation in 2025!?”
[7]. AP. “A downturn in worldwide journey to the US could final past summer season, consultants warn”
[8]. FRED. “30-Yr Mounted Charge Mortgage Common in the US”
This text supplies data solely and shouldn’t be construed as recommendation. It’s supplied with out guarantee of any sort.
