Raleigh STR House Hack UPDATE: Month 01

[Benjamin Carver]

In December, my wife and I bought an old 1984 3/2 split level home with a walkout basement in a great area of Raleigh NC and spent the next 5 months renovating it, spending a little over $40k and pouring every ounce of energy and time we had into it. Now, we are 1 month strong and counting in renting out the top 2 bedrooms on airbnb, with us living in the bottom half (completely separate) - here's how it's going so far:

Guests Stayed: 15

Reviews: 5 stars, 8 reviews, super host

Occupancy: We had 3 nights of where 1 bedroom wasn't rented. The larger bedrooms had a couple in it for the entire month, while the other turned every few nights on average. Takeaway is having at least 1 medium term guest will yes have lower rent potential but less headache and helps stabilize income.

Gross Earnings: $2,200

Expenses: $75 supplies (we clean ourselves, takes 10 minutes, and it's right upstairs no biggie)

PITI: $2,700

We paid $800 including utilities and any little repairs needed to live here.

When we move out, we expect to cashflow around $500 a month conservatively. The plan is to hold it long enough to see appreciation do it's thing AND in time we have the option to turn it into an entire house airbnb or even a long term rental for passiveness sake. Will do another update in time, cheers!

[Benjamin Carver]

Quote from @Bonnie Low:

Quote from @Benjamin Carver:

Quote from @Ian Jimeno:

Love those numbers, Benjamin! 

I'm sure as time goes on, rents will go up and your asset will appreciate. Keep us posted on how things are going. 

I'm also moving to the MTR strategy as we go to the fall/winter seasons here in Denver. 4 months out of the year it's reeeaaal slow as an STR, but MTR strat could keep things more afloat.

Cheers,

Ian

 Thankfully I think our seasonality in Raleigh is not as severe. But MTR is a great equalizer. Another reason I like having 1 of my rooms be a monthly guest through airbnb. One couple staying for 3.5 months while the other bedroom churns every few days

Your strategy is interesting. I haven't seen a lot of people (or anyone, really) doing a combo of STR and MTR in a shared space. How is that working out for your MTR guests? Do they mind the constant turnover? And how are you cleaning in 10 minutes???

 Works really well. If they come through airbnb, they expect it. They know it functions for both. It's not listed as *only* MTR but it works out that way and I could technically set a 30 day min. 

If they are solid, they pick up after themselves in common areas, keep the dishwasher running, and treat it like a home, making it *much* easier for me to keep it clean and ready for STR guests. 1-2 a month as needed I sweep/mop/catch up however needed, clean bathroom, etc. But otherwise, a room just needs new sheets (we have extras ready to go) and towels, snacks, and then we quickly wipe and spray everything down, vacuum (doesn't always need it after every single stay) and we are out. Got it down to a science pretty much.

We have a station in a closet with 3 sets organized ready to go and a cleaning bucket with spray, wipes, dusting cloth, windex, etc.

STR turnover averages maybe every 3 days. My schedule is flexible so I try to plan it during the day when they are out at work or whatnot. But they even stop and chat with me while I'm up cleaning and I'm able to check on them, make sure everything is good and see if anything else needs replaced like TP, paper towels, etc.