Flip gone bad....... Could Airbnb work?

Question

From this point I've done only 100-125k are flips and rentals. I rehabbed a higher end house in Neptune Beach, FL (Jacksonville). I'm at my breakeven point before I start eating money and they are going to call the loan in the next 4 months. It's a nice house but a 500K price yelds a pickier client range and not exactly the layout they may want. I get a lot of showings and never offers. I was thinking about refinancing it and turning it into an AIRBNB. It's approximately 5 min bike ride from the beach. Close to shopping centers / nice restaurants in a very nice area. I believe that if I could rent it 60% of the time at $300 a night it would work great but I'm in the colder part of Florida that doesn't have as many attractions as other parts of the state and not sure if it would stay rented 60% of the year. It's a nice area but not exactly, Orlando, Miami, etc. I be also faced with coming out of pocket another 7k for adding in beds, washer, dryer etc. If I start renting it now and it goes vacant during the winter I'll have to wait till summer again to sell it not to mention taking it off the market when the potential to sell it could be high or risking another down turn in the next few years. Any advice on airbnb in this area or ideas on what to do, I'm all ears. I'm at a crossroads.

To see photos of this house: https://www.zillow.com/homedetails/1515-Kings-Rd-Neptune-Beach-FL-32266/44625867_zpid/

Thank you Ryan Hammers

To see photos of this house: https://www.zillow.com/homedetails/1515-Kings-Rd-Neptune-Beach-FL-32266/44625867_zpid/

Thank you Ryan Hammers

Account Closed · Answer

im niot sure it would be vacant in the winter .. is Jax nit super busy in the winter of is it to far north .. Im in central florida and i kniw we get super busy in the winter ..how about looking into a short term executive rental .. there are a lot of new jobs on and coming to Jax .. companies will pay to house their executives in rentals .. Im pretty sure they are putting in new ports ..i heard a dollar amount was in the billions to build them  ..

I wish you the best ..

God Speed,

Michael Short

Marelyn Valdes · Answer

Before you spend all that money on furnishing it, consider checking out local online auctions or local auctions.  In Ocala, there are several local auction companies (some at auction house and some are estate auctions at a house/condo).  I can pick up nice appliances for $50 - $100 each and quality furniture (like Drexel) goes cheaply - so why buy new?  Box lots of linens, kitchenware, dishes - some for well under $10 per lot.  Most also take credit cards.

Ryan Hammers · Answer

I appreciate all the help everyone!  Definitely gave me plenty to think about.

Jay Hinrichs · Answer

any issues with permits.. I know some areas really are coming down hard on air bnb.

Kimberly Gopp · Answer

A private messages just went out to you! @Ryan Hammers I have a thought to run by you on this home.

Francesco Barbati · Answer

Did you listen to this podcast? Is about Airbnb and it could help you

https://www.biggerpockets.com/renewsblog/biggerpoc...

I think it could work especially if you rent rooms

Maxwell Lee · Answer

Sorry to hear about your difficulty in selling.

I do think a beaches location for airbnb is not a bad idea, and I dont think you should have a much harder, if any, time with winter rentals. But I have not analyzed this...it could be worth it to use mashvisor or airdna to get good data. But $300/night and 60% occupancy is a lot to bank on. It is certainly possible, i really dont know, but it is a lot to be dependent on.

Also, be sure you are considering all your costs. Managing an airbnb isnt too terrible but it definitely is a hassle if you are expecting it to manage itself. So factor in the cost of airbnb management as well as your cleaning costs. Finally, it is possible to continue to list the home while renting it on airbnb. We have done it successfully with two houses now. But we list our airbnbs at a bargain and make it clear that while they are securing a brand new remodeled home there will be showings and potentially inspections, repairs, etc during the day. 95% of guests have been very amenable. Of course, ours were hardly "luxury" rentals and such clientele may not want to be bothered with this. But it's just food for thought, if you want to go the sell route and offset some of the bleeding you can rent on airbnb for under market. We stage our properties so it's not really an added furniture expense to do airbnb.

Good luck!!

Jeff Riber · Answer

Hey Ryan,

I'd be interested to see how this works out if you go the Airbnb route...  "Medical tourism" would be a good short-term tenant for you as well.  Someone wanting to be near Mayo, etc.

Take care,

Jeff