House Hacking in Orlando: Converting a Shed into an Airbnb

[Victor Del Hierro]

Hi everyone,

I currently have a house in Orlando (technically it's my mother's house). In the backyard, we have a shed that I believe could be converted into an Airbnb, but it would require an investment. The house has a great location, just 4 minutes from the upcoming new Universal park.

I'm looking for advice on the steps to take to properly rent out the shed. What do I need to do in terms of remodeling and permits?

Additionally, I'm interested in learning about how to find investors for this type of project. How can I structure an agreement where an investor finances the conversion and we share the Airbnb income?

I appreciate any advice or experiences you can share.

Thank you.

[Shawn McCormick]

Need a lot more information about your property. Sounds like you are in Orange county, which does not allow STR unless you live at the property and are allowed to rent out a portion. First step is to find out if a shed would be considered a portion of the house.

Also need to understand what your definition of a shed is. To me its where you put your lawn mower and christmas decorations and wouldn't have the space to put a bed, fridge, closet or other storage, tv and other basics. If you are thinking an actual ADU, thats different. Does your shed have electric, plumbing, a/c? Will it have access without disturbing who lives in the main house? Is there parking to accommodate them, will they disturb neighbors that may not like the idea, are you in an HOA which may have rules agains this?

And other questions would be how much revenue do you think you can generate from this? How would you repay the investor? I lend money privately and would never consider this as it is dependent on things out of my control (permits, neighbors, you being a good host, rental demand etc) I sell a ton of STR that are in actual resort communities and have great amenities and they are all competing for the same guests, I can't imagine that there is a need/demand for this type of unit. What is the plan if it doesn't work?

Wish you the best of luck!

[Adrian Lammersdorf-Scioll]

Sounds like a great idea, just make sure zoning allows you to do that.  Why not take out a home equity line of credit thought so you don't need to borrow from someone else?  

Call the city to see what zoning you have, and if you can even do it, and make sure you get a licensed and insured contractor that has done ADU's to see if its possible. I know a good contractor that has a lot of experience with permits if you'd like the contact information.