House Hack with AirBNB

[Ben Kowallis]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $326,000
Cash invested: $19,900
Sale price: $460,000

Basement was already set up as another unit, so I bought furniture and converted it to an Airbnb while living upstairs. The Airbnb paid for almost all the expenses of owning the home and my "rent" was just putting $200-300 away each month in savings for maintenance and capex.

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

Great house hack in a great area!

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

Offered $20k over asking within a week of it coming online. My offer was picked above 3 others.

How did you add value to the deal?

Added solar panels and a hot tub. The hot tub was just for the luxury of having it, but we justified the purchase by increases the AirBnb nightly rent.

What was the outcome?

The provided a really nice place to live for significantly cheaper than renting a run down rental in a bad area. This was perfect to save a lot of money while maintaining a high standard of living.

Lessons learned? Challenges?

Learned that AirBNB needs a lot more time and attention than a long term rental.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Mike Hancock has been my realtor on all my deals! He has his own rental portfolio and works harder than most people I've met.