Family cabin in the mountains next to a major ski resort. Why not AirBnB?

Question

I’ve been discussing with my dad the idea of converting our cabin in Ruidoso, NM, into an Airbnb. It seems like a great opportunity—it’s located in a charming, small community surrounded by the national forest, just minutes from a major ski resort. Currently, the cabin is only used by our family about three weeks a year, and the rest of the time, it just sits unused.

For context, the property is in my parents’ name, and they’ve owned it for over 15 years, since I was a kid. My primary motivation is to ensure my dad doesn’t have to worry about financial stress after retirement. I’m trying to convince him that listing the cabin on Airbnb could be a great source of passive income.

I wanted to reach out to the BiggerPockets community for advice. Does anyone have experience with running Airbnbs, particularly cabins in forested or remote areas? What steps, resources, or preparations would be essential to make this a successful venture? Any insights would be greatly appreciated!

Ricky A. · Answer

@Zach Rumfield

I agree with @Bill B. and @Bruce Woodruff that, financially, this is probably a no brainer and that you should run the numbers to see how it pencils out because, even though your dad already owns the property, there are likely still some upfront costs to consider.

1. I would find 2-3 local property managers to interview and do walk-throughs with.  I'd want to know their rent projections, what needs to be done to hit those projections, and what could optionally be done to get even better numbers.  I would expect start-up costs such as stocking linens/bedding, upgrading certain furnishing and amenities, and pass-through costs for listing on the OTAs (like VRBO, Airbnb).  There could also be increased ongoing costs for upgraded internet, cable TV, etc.

2.  As a good son, I would spot check the property managers' projections by doing my own research on VRBO/Airbnb/AirDNA to see what I think similar rentals are doing.  This is sometimes called the "Enemy Method," and you can search for more details.

3. Make sure you get the right property insurance policy.  Actually, it scares me a bit that you say the property is currently only being used about three weeks per year.  I would contact my agent IMMEDIATELY to make sure they know that and to make sure I currently *really* have the coverage I think I do.  Some policies have vacancy clauses, and if the property is empty for, say, 60 or 90 days, your coverage may be reduced and you may not have the coverage you think you have.  One of our STRs has such a clause, but the insurance company waives it because the property management company does walk-throughs at least monthly.

4.  Consider the emotional aspect too.  I think there's potentially a different feeling when you convert a personal residence to such an investment property versus purposefully buying an investment property.  I think guests hardly ever damage things intentionally, but when you have luggage coming in and out all the time and little kids running around a "new place," there IS a lot more wear-and-tear, scuffs/dents/scrapes, and broken glass.  I can imagine that, with the wrong mindset, it could feel like an invasion or disrespect of your personal space.  So I suggest really being clear about the "why" and the "what to expect" to keep these inevitabilities in perspective.  Reading those little books that guests and sign and comment in can be very helpful and grounding when you have those times when it seems like guests don't care.

Michael Baum · Answer

Hey @Zach Rumfield, well you are in the right forum as all of us here operate some kind of STR on both VRBO and AirBNB along with other sites!

So first off it isn't a an AirBNB but a Short Term Rental. AirBNB is a platform you list your STRs on.

I didn't get that you want zero income like @Bill B. mentioned but it should be pretty easy to to get this rolling.

There are a ton of resources here on the forum so I would read up.

Next you want to make sure STRs are legal in your area. Is it in an area with HOA's? That would be next up to check. If it is legal then you are good to go.

Take a look at both VRBO and AirBNB and see what other STRs are operating in your area. Pick those that are similar in size and look at their nightly rates, calendars and amenities. This will give you an idea of what you can charge and what to expect with occupancy.

Next I would start looking for a cleaner, they will be your boots on the ground. You will rely on them for most things. Plus look for a handy person to take care of any maintenance issues that crop up.

You will need to look at each and every room with a critical eye of a guest and not the owner. There will most likely need to be updates to some of the furniture and probably the linens. The kitchen is important with a rural home. You need to have it fully stocked so people can cook while they are there and I tell you it is very important.

You need to setup regular services for the hard systems like furnace, AC etc to keep them in top condition. You don't want a failure in the middle of winter.

There are a ton more things to go through, but start there to get some idea of how it will perform.

Check out  - https://www.ruidoso-nm.gov/short-term-rentals

That is all the data to get started on the permit but still check if the neighborhood has an HOA and what the rules are.

Collin Hays · Answer

When my dad got ill with Alzheimer's, I took money from his estate and purchased a cabin in cash for $180K.  It earned about $35K a year, which combined with is retirement and social security benefits, provided him with top shelf top shelf living facilities - assisted living and then memory care.

It worked out very well.  My mother bought the cabin for the same income purposes after my dad died, and it is now earning $40-45K a year.  She liked it so much, I bought her another cabin.

Bill B. · Answer

Sorry if I came off that way @Michael Baum. I wasn’t saying he wanted zero income. I was saying his current situation is zero income. So that was a low hurdle to improve on. I assumed neither he or his dad were experienced STR hosts and said they wanted passive income.

So my solution was nearly zero work, almost no experience required, and an improvement on their current zero income solution. Especially if they gain tax deductions that might be worth as much the income.

Bill B. · Answer

Because your alternative is zero income. I’d search out an established local operator and pay them to operate it. Even if they took 30% you’d be way ahead of zero income. You’d gain tax deductions, and you’d relieve yourself or your parents of any additional work regarding reservations or repairs.

Bruce Woodruff · Answer

Like Bill said, it's a no brainer - if you have someone else run it. Just do the math and see how it pencils out.....you can look at the local competition and get a good idea how much you will make. Important - Make sure you know the local restrictions (if any) regarding STRs.

Zach Rumfield · Answer

Thank you all for this great advice. I am going to take it all into consideration and start doing my due diligence. I will be up there this upcoming week and will evaluate what needs to be done and look for a handyman and cleaner that are close by. I wanted to give a shout out to @Bill B., @Michael Baum, and @Bruce Woodruff for the advice. I will surely update you on the matter.

Andrew Steffens · Answer

All great advice above.  How is the STR market there, is it a popular area?  If so, as mentioned above, I would probably hire a PM if you do not want to run it yourself.  If you/your family have the time and the wherewithal than self managing could work great as well, just need to build your team.  Best of luck!

Jeremy H. · Answer

I would go read "The Short Term Shop" by Avery Carl - well worth the $10 or $20 whatever it is.

There's a to unpack here - preparing the property, pictures & listing, finding a management company, taxes, regulations for the area etc. Keep in mind that you will be running a business at this point, not simply renting out a house.

This post could easily become a book on what to do

This is an awesome opportunity and it sounds like a really cool unique property - no brainer to get it rented AND on top of that you can still go whenever you want. Very cool!

Family cabin in the mountains next to a major ski resort. Why not AirBnB?

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