In this video, I am showing you a fully renovated property that is completed and ready to be listed on the MLS or turned into an Airbnb. My team went with the grey theme on this one where the focus is Grey, White, and Silver. That is a popular modern look that works well for listing on the MLS as well as for Airbnb.
Since I am thinking about turning this property into an Airbnb, we went with two stand up showers versus the typical tub and shower that is more conventional with most 3 bedroom 2 bathroom houses.
If we list on the MLS, that may turn off buyers with young kids, who would like to have a bathtub, but other buyers (with teenagers or older) may love having two showers. And it works great for an Airbnb too!
So for numbers on this property, this was originally purchased as a rental property (with a tenant in place) for $115,000 in 2018. The same tenant stayed in that property for the entire time until they decided to vacate. When they did, we did a cost benefit analysis of refurbishing and updating to rent to a new tenant, versus updating to list on the MLS or turn into an Airbnb.
There was a lot of deferred maintenance on this house and the rehab into a rental was not making sense. It seemed to make more sense to either fix the house and sell it for full retail on the MLS, or to turn it into an Airbnb.
This house could be listed for around $339,00 to $349,000 representing a substantial profit even after factoring in the extensive rehab (which was around $40,000). Profit should be just shy of $150,000.
As an Airbnb, this house could bring in around $230 a night at around 70% occupancy which would result in around $4,800 a month (versus $2,200 a month as a rental).
The tool that I use to calculate the Airbnb short term rental rates is: https://www.lexlevinrad.com/airdna-airbnb-market-rental-analyzer/