How much will furnishing play into revenue?

Question

I found a pretty stellar deal in Texas hill country, a few months earlier than I was prepared for (doesn't seem like most deals have particularly convenient timing!)   I can fund the deal, but it will be a real push with time/energy (this will be my first year owning STRs). Heck it's so good I could manage a loss for a few months but I really think the cash on cash return will be 10% + first year and 20%+ 2nd year.  I'm motivated enough though, because this is what I have been looking for!

So here's my question.  This is a 3br home, but it's pretty small.  I will also need to do 15k+ in repairs.  I know I could put furniture on 0% interest credit cards, but I would need 2+ years to pay it off and I don't want to have to jump through hoops to cycle a balance onto new cards.  I know with places like Rooms to Go, I could get 50 months 0% financing, and honestly that would make cash flow so much easier and just be much less of a burden.  I am not sure I will have time to go thrifting or the like, as the property is 3 hours away and I work full time.

So... how much of an impact would it be to just go straight to cookie cutter Rooms to Go stuff for the big ticket items?  Keep in mind, while this is a local destination, it's a small town and not a *ton* of competition.  I think most of the visitors are just looking for a nice private home to enjoy the hill country, which this home would offer.

Alice Horn · Answer

Sure, start with Rooms to Go. But then spend a day in craft and antique shops nearby and buy colorful artwork, accessories, throws etc. to give the space a local vibe. Don’t ignore outdoor spaces. If you have a nice yard with a patio, or better yet a view, stage your outdoor dining space with colorful plates and beer mugs. Include some outdoor games (cornhole, foursquare). These touches help guests see themselves enjoying the space while having their Hills Country vacation.

Jerry W. · Answer

@Stephanie Medina, you need to scope out your competition.  All areas can have different vibes as you put it.  I furnish about 80% of my properties off of facebook market place and places like that.  You can often find unique items that catch the eye.  However my area is in a small town in the middle of Wyoming.  Your time is also worth a lot and if it is a long ways away that makes it harder.  I am always looking for unique items even if I don't need them.  All of my linens and towels etc. are bought new of course.  Wayfair gets a lot of use.  So not much advice, but feel free to experiment and ask your guests to give you feedback.  I have been surprised how little they care about things other than comfort.  Often little cute items impress as much expensive items.  Good luck and congratulations!  Keep us updated on your journey.

Ben Fernandez · Answer

Regardless of where you get the furniture, you need to meet or exceed the competition's amenities. If that furniture grants you that performance potential go for it.

It appears you're looking more so for what your break even point is. Be careful where you pinch. As a savings of a few thousand dollars on furniture, could determine if your occupancy rate is 65% versus 70%...If the revenue is $50,000/yr that's $2,500 in one year (which could be the breakeven for that specific line-item expense).

To determine you total breakeven point occupancy rate, and not just related to the furniture, take your operating expenses plus your debt service and divide it by your effective gross income. This is the minimum occupancy you'll need to stay in the black. If you need tools to aid your evaluations, feel free to connect.

Collin Hays · Answer

This really all depends on the property type. If this is a vintage property and you are going with that look, I wouldn't recommend cheap-o new furniture. Better to go to Facebook Marketplace and find good quality vintage and antique. It's also quite possible to buy REAL leather furniture that will last for a decade on FB Marketplace, much of it rarely used.  I have found super nice leather sofas for $500 or less.  If you are in a large metro area, it's a slam dunk.

You can get semi-antique persian rugs on FB Marketplace for the same price you can get a cheap fake at Lowes.  The persian rug will be your grandkid's someday.

I furnish my cabins in TN upscale with this type of stuff. Every sofa I have is real leather. But I rarely buy anything new because it is so cheaply made.

Erica Dike · Answer

Based on what you’ve shared, I think you could go with Rooms to Go without an issue. Just keep in mind—your design is what ultimately makes these numbers a reality. Running the numbers on paper is one thing, but actually securing bookings at your target rate is another.

Sounds like you’ve got a good handle on your market and what your guests are looking for, which is key. Hill Country is one of my favorite quick getaways—peaceful, great views, and water that’s just nice to look at lol.

My biggest tip? Focus on creating a serene, standout vibe and avoid furniture sets. All it takes is one competing rental with a unique design, and suddenly, you’re in a price war. A well-designed space becomes a vacation destination in itself—one that holds its value and stays booked long-term.

Gregory Schwartz · Answer

Make sure the decor and color selection are great! And don't skimp on pictures. I have had room-to-go furniture in 3 of my Airbnb for the last year. No issues.

Madri Koppe · Answer

Rooms to go should be fine. You can accessorize from other places local to you so the place looks a little more unique. Also pops of color or pattern is a great way to make a place stand out for less once you have the big ticket items. I’m always thinking about how something will photograph so my other advice is to make sure the photos are top quality because that’s all someone has to go off when booking.

Jon Martin · Answer

Make sure the couch looks nice, it will make the entire place look more comfortable by default. Have a nice rug that compliments the couch if you have hard floors. Dressers, nightstands, table/chairs etc are less important.

Metal bed frames all the way, far less liability than wood. I've seen plenty of high end places that still use metal frames, nobody cares/notices. You can still put a headboard on them if you want.

Mike Grudzien · Answer

Rooms to Go.

Michael Baum · Answer

Hey@Stephanie Medina, so if you are close to your new STR you could start scouring FB marketplace, Craigslist and others for used USA made furniture.

You can get great stuff for pennies or even free. In an area like Austin, I am betting you can find some great stuff for little cash. A quick look at Craigslist in Austin shows 4400+ listings by owner.

You could get started picking up various pieces while it closes.

I do recommend new mattresses. Zinus GreenTea 12" or the equivalent. They can be had for 200-300 for both king and queen when on sale.

EDIT - For example - https://austin.craigslist.org/fuo/d/round-rock-king-bedroom-...  not sure of COO but solid pine king bed with nightstands. $300. Looks like a nice set. Bet you could get it for $200. :)

How much will furnishing play into revenue?

Most Popular Reply