$3,000/mo Airbnb Potential home 3 blocks from Magnolia - Waco, TX

[Marshall Hooper]

My partners and I are closing on a home 3 blocks from the Magnolia Silo's in Waco, TX. The Magnolia Silo's is the retail store for Chip and Joanna Gaines, the stars of HGTV's Fixer Upper.

The home is a 3/2 and 1500 sqft on a corner lot. It will need a full remodel estimated at $70k, but the Airbnb monthly revenue estimate is $3,000/mo. 

Similar Airbnb's in the area go for an average of $300/night and up to $800/night during game days. The home is also a quarter mile from Baylor University, the largest employer in Waco. 

Magnolia brings an average of 20,000 visitors to Waco per week and you can count on another 5,000 now that a year-round Surf Ranch has opened just northeast of Downtown. 

We will post another ad once we close and can get some pictures of the home, but we wanted to post a BP-only presale ad in case there are any Airbnb investors out there that have been interested in buying in Waco. 

Asking $150,000

Est. Repairs = $70,000 for full rehab

ARV based on comps = $300k (currently a 1/1 800 sqft home for sale for $175,000)

Value based on 10% Cap Rate = $360,000