Rhode Island man with a fiancee, toddler and 3 Airbnbs wants a 4th property. Why Dave Ramsey says that's ‘dangerous’

James, 40, called into The Ramsey Show from Providence, Rhode Island, for existent property advice.

James makes $100,000 a twelvemonth successful a full-time occupation successful hospitality sales. He and his fiancée person a two-year-old together. On apical of that, they ain 3 Airbnbs.

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James told Dave Ramsey and co-host John Delony that helium presently takes attraction of everything astatine the Airbnbs — checking radical in, doing attraction and housekeeping. That’s connected apical of his full-time occupation (1).

“You should instrumentality up golf,” Ramsey said, laughing astatine however overmuch James was juggling.

Now James and his fiancée are mulling buying a 4th Airbnb with a slope loan. Their Airbnbs are doing well, grossing much than $100,000 successful 2024 with a 62% nett margin.

James expected to adjacent the books connected 2025 with $125,000 successful gross from the properties. It’s a lucrative broadside hustle.

But helium acknowledged he’d person to instrumentality retired a ample slope indebtedness to acquisition a 4th Airbnb.

Ramsey rhymed disconnected 4 reasons wherefore that’s a atrocious idea.

Here are things that marque James’ purchases of a 4th Airbnb “very dangerous” astatine this time, according to Ramsey:

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While James and his fiancée are engaged and person a two-year-old kid together, Ramsey says the risks of a breakup marque it “very dangerous” to put successful spot with anyone different than your spouse.

Ramsey advises against taking connected indebtedness astatine the champion of times, particularly erstwhile it comes to income properties. He and his woman ain a ample fig of rentals outright, debt-free.

Ramsey said it’s not large to person to beryllium connected a 3rd enactment — for illustration Airbnb — for your concern spot income. He added that a increasing fig of municipalities and HOAs are restricting oregon outright banning Airbnbs (3).

Ramsey doesn’t deliberation James has the bandwidth to negociate different Airbnb, fixed helium has a toddler, a full-time occupation and 3 existing Airbnb properties loaded with responsibilities.