Updated over 7 years ago on .
Opinions on AirBnB in multi-unit
Hey everyone! on 6/
I'd like everyone's opinion on using AirBnB as a means to increase cash flow, reinvesting the cash flow to force appreciation via upgrades to the property's infrastructure, and units. Details below -
I purchased my first 4 unit (2 bedroom 1 bathroom) multifamily house hack property in June, and I've just entered 1 unit. Since 2/4 of the units are on month-to-month agreements. I've considered having them vacate in order to AirBnb each room. Since I must give 28 days notice, I can have them out by September 29th. This will give me 2 months to upgrade the unit in which I reside (paint, new carpet or floors, new kitchen cabinet, and furnish), then enter the newly vacant unit, and host the upgraded unit.
As I've resided in AirBnB's since November '17, my average monthly cost was $676 per room. Granted, you receive a 50% discount for booking 28 days or more which I did. My last host did her first month of airbnb using 2 rooms in her home, and grossed $1342 between both rooms. The 2nd room was occupied 68% of the time, but generated $827 between 7 guests.
Although I'd like more statistics regarding the Milwaukee airbnb market, I figure that 50% occupancy per month would generate the same amount of revenue as leasing both units would.
Please give your opinions.