All Forum Posts by: Nathan Carlson

Sounds like you made it work out just fine. Well done! I experienced similar COVID-related Airbnb issues--everything worked out just fine after the initial cancellations due to longer term bookings.  Agree with you on being done as an Airbnb host. The money's not bad, but it's hardly passive income and is prone to seasonal fluctuations. 

Monica, seems I'm 8 months late to this post, but I did a single property deal relevant to your situation.
I had a townhouse with ~200 5 star reviews on Airbnb. The couple buying it owned the townhouse next door and we knew each other, which made the deal simple. With just a single property Airbnb profile, it was very simple to add them as a 'co-host' and then simply add their bank account to the profile to receive payments. I walked away clean--didn't move a single piece of furniture and hosted no more guests, and they walked away with a turnkey Airbnb with ~$7k in upcoming bookings. Over the course of 6 months, the buyer transitioned the property to a new listing using all the same information and pictures. 
We tried to work through Airbnb to transfer the original listing, but it seems there's no way to do that with their current software. I'm curious, how did your deal go? I'm thinking of rinsing and repeating on this same strategy shortly. 

Paul,I'm curious how this turned out. I have a similar situation brewing. 

Investment Info:

Single-family residence buy & hold investment in Chattanooga.

Purchase price: $201,000
Cash invested: $33,000
Sale price: $308,000

$20k, live-in renovation (full paint, refinish hardwoods, kitchen) and full furnishing. Bought again after 2 years and put property on Airbnb. Cashflowed ~$8k/year from Airbnb while paying down mortgage ~$23k. Sold the house as a turnkey short-term rental at 4 year mark, pulled out ~$135k in equity.

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

The area was starting to get hot and it appeared there was room to run. I liked the convenience of the area and townhome and assumed it would appeal to others as well.

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

An agent sent it to me (off market) and we negotiated $6k off asking. Not a lot of negotiation--the price was fair. If I could do it again, I'd negotiate harder.

How did you finance this deal?

5% down conventional loan.

How did you add value to the deal?

Painted all surfaces, refinished hardwoods, put in new countertops, backsplash and bar top, rebuilt deck, new HVAC, added custom built-in desk and shelving. I looked for the items that would appeal for resale. During my ownership, the HOA redid the landscaping and roof, which made the deal more enticing.

What was the outcome?

Truly, I stumbled into this deal. It wouldn't have been nearly as good if a friend hadn't recommended I put it on Airbnb after receiving news I'd be gone from the area for a year for work. I put $33k and 200 hrs of my own labor and returned $135k after selling the property as a turn-key short term rental.

Lessons learned? Challenges?

There are tasks worth doing yourself and there are tasks that aren't. It's smart to understand the difference.

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

I bought with a realtor, but sold without one, saving myself and the buyer a bundle. With the right property and situation, completing a transaction without an agent can be the best choice. If the wrong property and situation, it can cost you more than you could save.