100% Return on my First AirBnb - in 1 year!

[Shaun Kelly]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $265,000
Cash invested: $65,000
Sale price: $560,000

I turned an old 1970s cabin into a cash flowing machine on Beech Mountain, NC. It was nestled in between 2 rushing creeks but you would hardly know it with the way I bought it (overgrown bushes). After a few month of remodeling it myself, I launched it on AirBnb and VRBO and managed it myself from 2hrs away. 15 months later I sold it for over twice what I paid for it.

After it was all said and done, I more than doubled my investment AFTER taxes in a single year.

What made you interested in investing in this type of deal?

Remodeling an old cabin would make great content for my YouTube channel, combined with some AirBnb cashflow, combined with a cool vacation spot for me to stay at from time to time.

How did you find this deal and how did you negotiate it?

Found it on the MLS. It was there for a couple of months during peak covid and I guess no one saw the potential of having a cabin along rushing creeks like that.

How did you finance this deal?

10% down second home loan with a 1.9% interest rate (I know I know, why did I sell?)

How did you add value to the deal?

DIY remodeled the entire 4 bed, 3 bath cabin.
Cleared out a ton of brush outdoors to clear up the view of the creeks.

What was the outcome?

Rented a 90% occupied Bnb for a year before selling over double what I paid for it.

Lessons learned? Challenges?

I learned how to run an AirBnb from 2hrs away and when to fire cleaners vs provide bonuses to cleaners. Some need a boost while others need a boot.