Tiny House in Athens, GA - Would BRRRR or Airbnb Work?

Question

Hello, everyone! I'm Jane and am new to BP. I am looking to purchase my first out-of-state rental property later this year and came across a promising tiny house (2 bd, 1 bath, about 500 sq ft.) in Athens, GA for under market value and wanted to get some opinions on whether or not it would be a good property for me to BRRRR or Airbnb. A lot of the homes I am seeing in the area are valued at about $100K+, but they are much bigger and the tiny house in question is the smallest on the block. I have $30K to invest towards my downpayment, rehab, and closing costs. Ideally, I am looking for a property that meets the 1% rule and can get me $100-$150/month in cash flow, since I plan to continue working full-time as I build my portfolio.

So my questions are: Would this tiny house work as a BRRRR? Is it worth it for me to try to expand or fix up and get it appraised to refinance? And if not as a BRRRR, would it be good as a short-term rental? I noticed that it was less than a 7-minute drive from the Athens airport, University of Georgia, Sanford Stadium, and the Tree That Owns Itself, etc. - all hot spots that could potentially be good for visitors.

Would love to hear your thoughts on all of this. Thank you!

Ethan Atkinson · Answer

This all depends on some other factors.  Athens is like many great cities where you can be real close to great amenities or close to some bad stuff.  Airbnb works for lots of folks around here.  If the house is listed I’ll look it up now and we can discuss some more. You are saying tiny house but in this case it’s a tiny house but actually has a permanent foundation it sounds like?  And yes you are right about the value.  If it’s less than $100k then it may be a deal.  Which also means If it’s on the market still it’s probably gone already, but if not and it’s really listed for sale longer than a couple weeks it’s still not a “deal.”  Look up my profile and you can find my number there or FB

Jack Tucker · Answer

@Jane Wish

AirBNB is not viable right now.  I have a couple of vacation rentals on campus and a 600 sqft 2 bedroom near downtown in Athens. Unfortunately, the CoronApocalypse has cancelled every single booking until further notice.  One strategy @Ethan Atkinson should consider scaling up our automation and making off-market Low offers via the Airbnb platform right now.  We should work on that with our tech group.  I know I'm not the only AirBNB owner feeling the pain and  KNOW these folks see no end in sight with zero income and would consider some fast cash.