Dipping toe in, Airbnb gut check request

[Will Lotherington]

TL;DR should I rent a 2bed 1bath for $1200 if I can Airbnb it for ~$1600?

Hello, I recently discovered BP and am extremely excited by everything I've learned over the last few weeks.

I believe I found a low risk opportunity to dip my toe into managing an Airbnb, but I would greatly appreciate a gut check before signing anything.

I rent an apartment in a suburb of Chicago (Elmhurst) and found a second apartment (2 bed, 1 bath, 1200sqrft) 2 blocks away. The second one is renting $200-$300 below market at $1200/mo since the owner is a retired 77 year old living remotely and just wanting a low maintenance property, and the property manager is the owner's old friend who primarily wants a reliable tenant who pays on time (she's been getting several subpar applicants).

The unit is in a great spot less than a block away from the metra train that goes into downtown Chicago, and in the center of all the stores and restaurants in the little town. I talked to the property manager about wanting to rent the place so my friends and family who visit about every other month from CA don't have to get a hotel (this is completely true and something I have to factor out of my numbers), and asked if she would be comfortable if I listed the apartment on Airbnb the rest of the time. She thought it was a great idea.

I reached out to several current Airbnb hosts in my suburb and they all said there weren't any weird legal issues like the city of Chicago has. Airbnb estimates ~1600/mo average, and I think it is a bit conservative given the location next to public transportation, "coolness" of the unit (100+ year old building that will stage and photograph well), and relatively underwhelming alternative Airbnb and hotel options.

Furnishing everything is my biggest unknown that I'm working on, but I would greatly appreciate hearing about any red flags/concerns/oversights that jumped out at you while reading this. Sorry for the crazy long post, but thank you very much for your help!

[John Underwood]

@Will Lotherington You will also have to pay for all utilities, add internet, cable or satellite (to do it right).

You'll need to furnish it with good to nice furniture, provide consumables, sheets, towels, cookware etc.

You will need to replace items as they wear out.

You will need to clean the place after each stay or coordinate and pay someone else to do it.

I think these cost will eat into or eliminate any potential profit over what a Long Term rental would bring in with much less effort.