Building a house to turn it into an Airbnb?

[Franck Brichet]

Hi,

I am new to BP and this is my first post. Here we go:

My wife and I have an opportunity to buy an old lake house at the lake of the Ozarks for 60K. It’s in a desirable location. Our idea is to buy it, bulldoze it, and build a brand new home on it and use it as a vacation home and also pay for it it by renting it on Airbnb. We’re really excited but we are afraid to make a huge and costly mistake.

Here is a quick summary of my calculations:

Total cost of purchase + build = $410,000

Rent = $4,000/month

Cash for down payment = $50,000 (that’s my pension working as a teacher for 11 years).

On the paper it seems that it would work but I’m afraid I’m forgetting something. Any feedback or advice would be much appreciated.

Thanks,

Franck