Potentially Purchasing a 3 bed 1 bath that has a separate guest suite on airbnb

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Potentially Purchasing a 3 bed 1 bath that has a separate guest suite on airbnb

Andrew O'Flaherty
Member since 2023 · 5 posts · 4 votes

Hi All,

I’m newish to this site and have been searching for properties in my new hometown Boise Idaho. 

The Investment I’m looking at is a  3 bed 1 bath and has a really nice already running Airbnb 1bed/1bath guest suite that generates an average of $1500/Month. I’m leaning towards purchasing it in the next 24-48 hours.  I would live in the main home for a few years and looking for folks that would be willing to provide me with some advice. 

Currently I pay 1550 monthly for rent and I have the following mortgage options with this purchase:

- 2996/Month 15% down

- 3406/ Month 5% Down

Please ping me a message if you’re open to having a brief conversation. 

Thank you, 

Andrew

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  • Mike Maloney
    Member since 2024 · 15 posts · 6 votes
    2y

    Hi Andrew,

    Owning can definitley be more affordable than renting if done right. I'd say how much you put down depends on your plan. If you want to scale up and buy more faster putting less down is the best plan. However if you want to generate more cash flow putting 15% down will help you because not only is it a lower montly payment but when you hit 20% equity they will remove your PMI.

    If you put down 5% I would stronly encourage you living in the Airbnb if possible and renting out the home so you can generate even more income

    If you look at it like this it'll help

    Monthly payment < Potential income + current rent

    If you can move and reduce your cost of living that is always great at the bare minimum they should equal each other in my opinion because at least you'll have equity if the market you are choosing is a strong equity market.

    0Reply
  • Andrew O'Flaherty
    OP
    Member since 2023 · 5 posts · 4 votes
    2y

    Thanks Mike, this is helpful

    0Reply
  • Gregory SchwartzBusiness Member
    Rental Property Investor · College Station, TX · Member since 2016 · 1k+ posts · 1k+ votes
    2y

    Do you have any interest in expanding your portfolio to more Airbnbs? 

    My first Airbnb was a room in my house that brought in $1500 a month. 3 years later I have 7 Airbnbs that collectively bring in $12-14k. By starting with an ADU or guest suite you have very little risk and can provide excellent service to your guest. That experience can give you the confidence to grow.

    Good luck! 

    [email protected]443-812-0357
    Schwartz Realty Group5117 Reviews
    WebsiteView Page
    0Reply
  • Andrew O'Flaherty
    OP
    Member since 2023 · 5 posts · 4 votes
    2y

    Thank you Gregory, I’m planning to expand my portfolio in the next few years once I’ve been in the area a few years. 

    0Reply
  • Gregory SchwartzBusiness Member
    Rental Property Investor · College Station, TX · Member since 2016 · 1k+ posts · 1k+ votes
    2y

    Dude then Airbnb the way to go! Learn the easy way then grow the portfolio to financial freedom :)

    [email protected]443-812-0357
    Schwartz Realty Group5117 Reviews
    WebsiteView Page
    0Reply
  • Andrew O'Flaherty
    OP
    Member since 2023 · 5 posts · 4 votes
    2y

    Thank you! This is all great and what I needed to hear today. 

    0Reply
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