Thought of converting Skoolie into Airbnb

[Alex Rocco]

I am nearing the completion of a "skoolie" (bus conversion build) and am in debate over selling for a lump sum to help the fulfill my REI opportunities, or go the Airbnb route. If I chose to Airbnb, I believe I can generate a decent amount of cash flow, profitable within a year and a half, and still be able to fulfill my REI goals. Any thoughts? Located in Pueblo, CO. Thanks!

[Paul Sandhu]

You would probably be better off selling the "skooklie" and purchasing a typical residential property for your Airbnb.  I shared a mobile home with 2 ladies that shared a bedroom while I had another bedroom on the other side of the of the mobile home while in college.  There was an old school bus in that trailer park that someone had converted to living quarters.  It was next to some railroad tracks and a pond.  I would drink some beers and shoot at frogs in the pond with a wrist rocket while waiting for trains to come by and run over the pennies I put on the tracks.  I was in MBA graduate school at the time.

[Michael Baum]

Hey @Alex Rocco, where are you going to put it? Is it legal to do it in Pueblo? Do you have a lot in mind or ?

[Alex Rocco]

@Michael Baum Yes It is legal in Pueblo, and I have two locations in mind; one is centrally located with close access to Interstate 25, the historic business district downtown and the Pueblo Riverwalk. The other location is in Pueblo West on almost an acre of land (which is not my property). The first location just sounds more appealing. And I would have quick easy access to maintain and upkeep. I just have a feeling that it would be more ideal to sell at retail, purchase a rental and go from there. Do you have any thought of what you would do?

[Michael Baum]

Hey @Alex Rocco, ok, so a skoolie is a different kind of thing. If you are doing it in a central location close to stuff, that is cool. BUT, what will the neighbors think? It isn't the same as a house and I got the feeling that neighbors won't like the idea of a school bus as a STR in their neighborhood.

Might remind them of a homeless camper or something like that.

You would have to go out of your way to really deck out the lot. Make it have strong street appeal and the bus needs to look sharp and fit in.

Will you have this bus on sewer and water with an electric feed?

[Brian Bohrer]

This sounds like a perfect fit for the "new" Airbnb algorithm, where they seem to promote the unusual stays at a premium over the traditional.  Very Cool!  Although, as others mentioned, without a decked out lot and other amenities it could come off as an underwhelming cash grab from your tenants.  If you can make it a genuine experience of some sort with a theme, then I think you really would have something!  Maybe a cool lot with a view or a campground feel could work?  

There are so many different personalities out there with different needs, I am sure you would have tenants, but how many and how frequent would be a concern without some broad appeal that brings in a variety of personality types.  I think it would be easier to sell if it was me, but I am sure with the right marketing and design you could make a killing!

I wish you the best!

[Joel Case]

STR the skoolie 100%! Tiny homes are in right now and tons of people would like to stay in one for a short period. Put it centrally located, not in Pueblo West and I think you have a nice little gem. I agree with others, it would need to be very well done and the exterior needs to be top notch, but I think it would be well worth it and you could start sooner with what you have rather than later with something you would have to locate. Unique is the way in my opinion.

[John Mausteller]

This is an interesting debate.  I think you cannot go wrong with either choice.  If you sell and invest in real estate to then rent short term, you are getting in the game and thats the first step.   On the other hand, depending on what this skoolie looks like, it is a very unique stay and sites such as Airbnb feature short term rentals like that more often than just your traditional single family home.  People going on vacation like an experience and if your bus provides that - it can become a popular rental.   If where you are parking it is not to expensive and you can pay it off in the next year and a half and then its all profit after that, it could be a source of financial income for many future investments instead of just a one time thing.  I will be interested to see the route you choose and would love to see the skoolie! 

[Tanner Pile]

Alex, @Alex Rocco

I like the idea to use it as a STR! It is a unique space that will attract many Airbnb users. In Pueblo, the main attractions tend to be the reservoir for boating, swimming, and some good biking trails and the river walk downtown for a food scene. One question to ask is if this will be enough to bring in consistent Airbnb guests for it to be worth holding on to? Have you looked into the airdna analysis for the pueblo STR market?

Have you looked to put the skoolie in another location such as Colorado Springs, Salida, or Buena Vista?

[Ben Einspahr]

@Alex Rocco My short answer is it depends... Are you looking for immediate cashflow or less cashflow but long term wealth? Obviously the immediate cashflow option is airbnb'ing the bus route that you could eventually sell at a premium as a "business" to someone looking to do the same then invest in REI. Or sell now and invest now with the market at a discount.

Selling now and investing in REI will give you less cashflow out of the gate but much greater wealth building potential due to the multiple wealth building avenues that REI provides (debt paydown, appreciation, depreciation, and.... cashflow)

All depends on what strategy aligns with your goals. I would If it was up to me, personally like the REI route even though the van idea is much more "sexy"

What does your total debt look like invested into the van? (purchase, furnish, ect)

[Emily Murray]

Check out the busses at Mystic Hot Springs!

Monroe Buses | Mystic Hot Springs