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 economic freedom.
In a latest X publish [1], Elefante informed his story. He and his spouse walked away from six-figure jobs, borrowed a whole bunch of 1000’s to purchase their first house 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 per week” — all whereas carrying tens of millions in debt from their a number of mortgages.
Their message is easy: as a substitute 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 comply with, or a harmful guess that would collapse beneath 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 economic freedom.
In a latest X publish, Elefante informed his story. He and his spouse walked away from six-figure jobs, borrowed a whole bunch of 1000’s to purchase their first house 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 per week” — all whereas carrying tens of millions in debt from their a number of mortgages.
Their message is easy: as a substitute 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 comply with, or a harmful guess that would collapse beneath 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 concentrate on household, journey and experiences. For individuals who worth time and do not wish 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 solely on Airbnb listings. Basing your revenue on one other platform’s whims is at all times dangerous — if tourism slows, rules tighten or bills rise, they’re nonetheless on the hook for all 12 mortgages.
Any of their properties could possibly be impacted by pure disasters, which might restrict revenue that they rely upon. Even one thing so simple as a pipe bursting may have an outsized influence on their funds.
And whereas the couple claims they work just a few hours per week, the truth is probably going extra advanced: managing a number of properties sometimes requires full-time consideration or the companies of an costly property supervisor. On high of that, Elefante has constructed a facet enterprise round educating others learn how to comply with 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].
Learn extra: Wealthy, younger People are ditching shares — listed here are the choice belongings they’re banking on as a substitute
Most individuals cannot stroll right into a financial institution with no job and qualify for the $420,000 mortgage Elefante used to get began. It’s value noting that Elefante grew up in Chapel Hill, NC, a well-off space with robust faculties, attended the celebrated 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 unimaginable to duplicate, however it does make it tougher for the typical particular person to aim to comply with.
Airbnb may also 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 reduce into host income. A recession or shift in journey patterns may shortly change the maths, which is a vital 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 simple as rates of interest rise [8].
In case you’re contemplating an Airbnb funding technique for your self, it is essential to begin small and preserve 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 enable you to be taught the ropes earlier than taking over a complete mortgage.
Earlier than leaping in, ask your self:
-
Can I afford the mortgage if bookings dry up?
-
Do I’ve money reserves for repairs, vacancies or sluggish seasons?
-
Am I snug being a landlord or paying another person to do it?
-
What are the native legal guidelines on short-term leases?
-
Are there any legal guidelines within the works that may influence short-term leases?
For most individuals, the most secure path to any such monetary freedom is gradual development. Construct fairness in your present house, save aggressively and scale up after constructing a monetary cushion. Whereas Elefante’s path is not unimaginable to comply with, it will not be as simple to duplicate as his on-line content material makes it appear.
Taking up tens of millions in debt can create a way of life of freedom, however it could possibly 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 threat tolerance.
Keep within the know. Be a part of 200,000+ readers and get the most effective of Moneywise despatched straight to your inbox each week free of charge. Subscribe now.
At Moneywise, we take into account it our duty to supply correct and reliable content material folks can depend on to tell their monetary choices. We depend on vetted sources corresponding to authorities knowledge, monetary data and skilled interviews and spotlight credible third-party reporting when acceptable.
We’re dedicated to transparency and accountability, correcting errors brazenly and adhering to the most effective practices of the journalism trade. For extra particulars, see our editorial ethics and pointers.
[1]. @melefante6. X publish on Sep. 2, 2025.
[2]. Skool. “Michael Elefante”
[3]. Elon College. “2016 Baseball Roster”
[4]. Michael Elefante. LinkedIn publish 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 might final past summer season, specialists warn”
[8]. FRED. “30-12 months Fastened Charge Mortgage Common in america”
This text supplies data solely and shouldn’t be construed as recommendation. It’s supplied with out guarantee of any variety.
