How to Price/Sell a Duplex That Has a Very Profitable Airbnb

[Jon Olson]

Hi there! 

I am in Milwaukee and am in the preliminary stages of selling my duplex. I purchased it just a short two years ago for $171,000 in October 2016. I have enjoyed the benefits of running a very successful Airbnb in the other unit, which is just a simple 500 square foot studio. It has earned me (at least) 1.5 times my mortgage payment for every month since Nov 2016, which is enough to cover the mortgage and bills, plus put a little extra in my pocket. Some months are very good. Last July I made $3003 and this July I am currently at $1847, with some dates still available. My mortgage is only $860/month.

I am wondering how to properly price my house, now that I can show proof of a very profitable short term rental business resulting in "free living". My duplex is zoned as Light Business 2 (LB2), as the renovated studio I use as an Airbnb used to be a barber shop. Last appraisal on my duplex valued it at $170,000 but they knew nothing about the Airbnb. I'm 27 years old and have very little experience with real estate. Common sense would say that having such a successful Airbnb would increase the value on the home. I'm just wondering what to do next, if I should speak with a real estate lawyer, or if anyone on here has been through a similar situation. Any and all comments would be much appreciated.

Thanks!

Jon