Strategy: AirBnB with Duplex

[Devin Duval]

Hello BiggerPockets Family!

I am looking into buying a duplex in the Columbia, SC area. It is a 3bd/2b on both sides with a single car garage on either side. The purchase price is $240,000 and I have had an appraisal done on the property that has come out to $323,000. It needs $35,000 in repairs.

So, my strategy with this property is to use an investor friend for the down payment of 20% ($47,000) and the rehab cost of $35,000. And the goal would be to pay him a 10% return on his money annually until he can be payed out. Then AirBnB the duplex for maximum profits. I am trying to figure low around 16 nights @ $225 a night. The area is nice. It is 5 miles to the football stadium, and around 2 miles to Ft. Jackson which is a military base that has graduations so many times a year. So I think the price, location, and days booked are reasonable. 

With this post I would like to see if anyone else has used this strategy? Do you think my numbers are favorable? Do you think my booked days and pricing is reasonable? Or just any input that you may have would be greatly appreciated.

[David Lewis]

Devin,

Coming from Alaska, Vacation Rentals are a lot more attractive due to high property values. I like the hustle and hospitality behind Vacation rentals, so the extra work is worth the bigger return over long term tenants. I am currently looking for a multifamily property using the same strategy. A couple things:

1. Have you considered going the FHA route and lowering that down payment?

2. To Lauren's point, it is very expensive to fully stock one, let alone two properties. I would recommend living in one unit, AirBnB the second unit, and ease into another unit over the next year. 

3. Check out AirDNA for local Vacation Rental comps. I typically factor 70% occupancy and I am always looking at other hosts for how they price. No need to reinvent the wheel, find a good host in your city and copy what works for them.