How do I sell my successful Airbnb?

Question

My Airbnb is grossing $45,000 a year. This home is appraised at $250,000. Can I sell my house as a business and market it as such and make more than the appraisal? If so, how would I do that? I have three years proof of income.

Bill B. · Answer

It’s going to be hard to get more than the property’s worth.(What it appraises for)

Imagine you have a home worth $250k and you want $300k.

It appraises for $250k so the investor (after all you can’t sell to an owner occupant, the buyer who would pay more than the investor.) has to bring 20-25% of the $250k plus all of the $50k extra. So they have to come out of pocket $112k. And they are literally out that $50k compare to if they bought the house next to you (with $62k down) and made it an Airbnb. Your reviews and history don’t transfer.

“Usually” you’d be lucky to get your furniture costs back.

You’re targeting an investor and an entrepreneur, both of whom want to “pay below market”. And you’re asking them to pay over market. Obviously you can ask. But you can’t use your “profit” as a guide when your buyer will have a higher interest rate on a higher mortgage with a higher downpayment.

Goodluck.

Janet Taylor · Answer

Thank you so much for the info. That’s exactly what I needed to know.

Janet Taylor · Answer

I was thinking that. I rent rooms in this house which has been a game changer for me. Such a need and not much out there offering rooms. Thank you for your reply.

Andrew Freed · Answer

@Janet Taylor - You could market it to another short term rental investor, fully furnished ready to go and they might pay a premium for that. I've seen other investors buy out of the box short term rentals before. But to sell based on how businesses are evaluated doesn't make sense. It's a piece of residential real estate, that is not how you value this type of asset.