Primary Residence into AirB&B
Investment Info:
Single-family residence buy & hold investment in Spokane.
Purchase price: $340,000
Cash invested: $90,000
Beautiful single family home close to downtown. This was acquired with the intention of being my personal single family home until I discovered the profitability of airb&b. For two summers of and on, I have rented out this 3 bedroom 2 bath home for an average of $150-170 a night. Soon, I will transition the property to a full time airb&b after some additional upgrades looking for $200 a night minimum.
What made you interested in investing in this type of deal?
After traveling through Southeast Asia in the summer of 2014, I came back with a new perspective and a new ideal. AirB&B. After staying in Bankok, and meeting an ex-pat who renting out 3 rooms in a trendy part of town, I saw the advantages and opportunities of AirB&B.
How did you find this deal and how did you negotiate it?
My friends decided to sell, and I saw an opportunity to sell my existing home, that seemed too big, and right size if you will. Although I started AirB&B's my old home and didn't turn this into an AirB&B for two summers, I was itching to experiment again.
How did you finance this deal?
Traditional financing on a 15 year note.
How did you add value to the deal?
After moving in, I painted the exterior, made a few cosmetic updates and actually reconfigured the doorway for more space parking.
What was the outcome?
The house has been a great income source while I moved to the lake in the summer. Now, my husband and I just closed on a new house that is literally in our backyard. We will remodel the home, and move upon completion of the model and turn this back into a 100% AirB&B.
Lessons learned? Challenges?
The only challenges with AirB&B have been worked out. We have electronic access versus a keybox now, and I will probably upgrade to a more secure system before long. We have a set of cleaners who understand the timing and routine. I also have my property manager help with booking/questions/logistics if I am out of the area. Most of my friends and family have been worried about my "stuff" with guests here, but I have not had any issues after over 95 bookings and my role as a Super Host!
