"Tiny Tipsy Cabin" AirBnB

[Michael Haas]

Investment Info:

Single-family residence buy & hold investment in Seattle.

Purchase price: $330,000
Cash invested: $9,000

400 sq. ft. 1941 shipbuilder cabin on the West Seattle Waterfront. We hired out the new electrical service, wiring, drain drop,and stove pipe replacement, and did the new kitchenette, floor sanding, new deck, and paint ourselves.

The Tiny Tipsy Cabin is currently rented on Airbnb with hundreds of reviews and a 4.8 star rating, and net income is about $3,000 a month before accounting for debt service.

What made you interested in investing in this type of deal?

I'm an Eagle Scout, and the Henry David Thoreau in me just wants to live in the forest and chop wood all day. Plus we wanted to get into STR's (Airbnb, VRBO, etc).

How did you find this deal and how did you negotiate it?

MLS, second buyer position. When the first deal backed out we offered quickly, cash, and much lower than they were initially under contract for. After negotiations we met towards the middle at a price point that worked for our investment goals. The seller knew that many buyers would get scared off by the building's unique lot conditions and structural issues, so he took the discount and sold to us rather than risk going pending and back on the market a second time.