All Forum Posts by: Julie K Fredrick

Thank you both! I took your advice. I dropped the historic property and bought a more traditional home that has a great rental history. And, I didn't take the realtor's advice on what my offer price should be! 

I got it for $221K: https://www.realtor.com/reales...

I am struggling on understanding the value of a historic 1362 sf cottage in an historic town in the South. The cottage is in pretty rough shape. My realtor pulled comps, but I don't feel they are an apples to apples comparables. The sellers purchased the property 2 years ago for $210K. They have done nothing to it. The market in the town has been somewhat flat, but rising slightly...maybe 3% per year. My realtor said it's worth $220K-$230K max. Asking price is $270K, reduced from the original asking price of $283K. It has been on the market for 65 days. 

Today I offered $225K. The verbal counter is $260K. I am nervous going any higher than $235K because it needs around $50K in work to bring it to where I want it to be for an airBnB. To my shock and surprise my realtor now feels the property is worth $260 (only 4 days ago she pulled comps and told me it was worth the $220K-$230K max!). 

I want the house as I think it will be a profitable airBnB due to the location in the historic district, but I'm not in love with it, so I can stay objective. But I feel very lost. It feels like I'm buying a one of a kind antique. 

How do I properly value this cottage. Is it a gem or a money pit I'll never get my money back out of?

Thanks in advance!

Julie

Teresa, I think the home owner was doing the cleaning herself.

Hi Aigo, 

I'm not sure. I am looking into finding an Airbnb manager in the area since I'm 3000 miles away. I do believe there is demand for Airbnb or LT rental. 

About my property:

-1600 sf house + established Airbnb 1 BR cottage in the backyard ($1400 per month avg)

- I live 3000 miles away, but I used to live in this town and have friends willing to get involved. 

-The "best" property management company in town will only rent all together (house + cottage to one party) for $1800 per month. They say Long term house renter will not like Airbnb cottage in the backyard. OK, I get it.

-Airbnb friendly. No HOA, no city laws.

-Shortage of rentals in area. 

How would you rent this out? Some ideas:

-Keep cottage as established Airbnb, rent house as furnished corp rental, or long term rental managed by me from 3000 miles away.

-Rent as one parcel

-Rent both as Airbnb.

-Other

Thanks in advance!