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Posted over 4 years ago

The HotSprings Gold Mine

AIRBNB Analysis Experiment 1.0 Day 1/8


Locating a Starting Point

Using the online Airbnb calculator at ElliotandMe.com I reviewed my neighboring cities and a few choice locations in BC that I figured would do well on Airbnb. I discovered that a few areas stood above the rest - Hemlock Valley, Harrison Hotsprings, Tofino and Kelowna. I was intending to post a screen shot of the Airbnb map featured on Elliot and Me; however, Airbnb recently acquired them and the site is now down. Airbnb.com does have it's own income estimator available, but it is very basic in comparison to what I was using on Elliot and me. I did a quick search in each of the cities to get an idea of what the pricing was like and quickly realized Hemlock and Harrison were significantly cheaper than the rest. After checking in on the 2 cities short stay regulations I began the search for the perfect BRRRR property.

The HotSprings Gold Mine

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I found a beautiful cabin on Harrison Lake a short distance from the hotsprings. I ran the numbers on the property and my estimations were telling me the property was going to bring in an AVERAGE of $9,600 a month while similar properties had brought in $73k-$137k in the previous 12 months. My investment partner and I hesitated and talked about it for 3 weeks before submitting an offer and someone had scooped it up before us... Sad day. The income estimate for the property was so high that I figured I must have made a mistake somewhere.

Selecting Properties

Normal 1566149390 Airbnb Income Projection

Our next property of interest was a 5 bedroom, 2 bathroom log cabin in Hemlock Valley. Unfortunately Airdna.co does not have the data for Hemlock Valley and like I said before Elliot me is down, so I used the Bigger Pockets Airbnb Calculator with the saved data from an Elliot and me analysis of a condo I was looking at in the same area. The Airbnb income potential looks good at a $5,700 a month average. The price point is $540k while my comparative market analysis came in at $770k, which tells me there are some improvements to be made. A nice bonus is the locations growth potential as the Hemlock Valley Ski Resort is investing $1.5 billion to upgrade the mountain to all season Whistler status. I almost forgot to mention that the cabin is the second closest house to the ski lift and the tube park is across the street.

BRRRR Analysis

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Here is the link to the full analysis- https://drive.google.com/file/...

I had yet to see the property when I put together this analysis so I assumed the worst in terms of renovation and costs.

Promises for Tomorrow

I wasn't quite able to catch all the way up today, so tomorrow I will share what happened with the offer, the inspection and the closing prep.



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