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Greetings, looking for some general advice for my particular situation. I am currently self employed and when not busy I feel like I'm not contributing haha
I am contemplating turning a building in the back of my property into a living area for Airbnb.
I have inheritance in the bank and I hate the idea of spending money because in my mind I feel once I spend I won't ever make money again lol
I don't want to give an exact number of how much I have but it is a decent amount however I realize decent is different for everyone.
My question is I think the Airbnb idea would be a good choice because that would only add value to my property even though it make take years to make back...
Other then that for someone in my position what would be a good recommendation as far as other business or investment outlets are concerned? Buying property with the idea of renting?
I think for me it is very mental because like I said I hate not feeling like I'm making money or contributing to the family so a good investment or staying busy with a new opportunity would help fill in the gaps.
Also another question...how do you decide on whether to take out a loan or spend the money you have in savings?
Physical real estate investments might be a good choice for investors that want to lower their taxes.
I would feel better in buying newer quality but there is a lot of renovation of 1960's houses.
Most investors would finance and then calculate cash-flow plus tax savings.
Many REIT's just ignore that depreciation subtracts from earnings because they renovate and repair all-along. But if a real estate location were to become unpopular then historical depreciation would make sense
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Before doing any financial analysis, the first thing I would do is determine if converting that building to airbnb would be allowed under your zoning laws, HOA regs and CCRs, or any other property usage laws or regulations. Then, I would consider if the location would be appropriate for use as an airbnb. You need to know what the likely demand for the airbnb would be in your area. That could make your decision for you before you spent any money.
Thank you for the answers. I have a couple acres outside the city limits...all is good to go in that department. The area does have decent tourism throughout the year. I have a friend who has something similar and he says I could expect vicinity of 20k a year(i was thinking a little more)conservatively. I'm thinking when all said and done the transition cost would be somewhere between 80k to 120k. I have a visual that seems like it would really work. But I am also very conservative when spending big $.
Since you have times between gigs is it possible you can take on some of the unskilled labor yourself. 80-100k feels like a lot for finishing out a shed. Then you have the possibility of a downturn when the job is done.
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
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Several friends rent AirBnB (via competitor site), and some do very well (Neighbor gal converted a horse stable as a couple's retreat, and has been booked every weekend and all summers since 2019. Tourist region) She probably spent under $10k and it is very cute, unique, fun. and is in very high demand. OTOH... my SIL in Maui just sent pics of Airbnb tenants who left yesterday. They got drunk and busted in all the doors, broke the marble countertops, threw wine glasses (full or wine) onto the white carpet. (neighbors had complained to management and police the renters were too noisy, so I guess they wanted to illustrate what noisy really was) They had a big shouting match with police and managers at 3AM.
Anyway... YMMV. I definitely would NOT do a daily rental at my home location. (We have traveled worldwide for 30_ yrs and our 'retreat' home has always been open to WW travelers (for free)).
Spending money on properties... ONLY spend what you can recoup in enjoyment or returns. (don't overbuild for the neighborhood, which you cannot change). We have had over 40 properties (many different types). For our personal home, I always build a separate living space (30+ yrs caring for disabled parent). Eventually, I'll probably live in the extra space and my caregiver will get the 'big-house'. In the end all properties and remaining assets go to charity. The kids will have to cope.
Also another question...how do you decide on whether to take out a loan or spend the money you have in savings?
Cover your needs and emergency funds, and keep the remaining $$ working for you (I got my last 'Bank' loan at age 35, been 'self funded/ using margin acct, HELOC, mortgage equity ever since. (I dislike banks)) I've bought many props via owner finance, and am currently selling my props and carrying back the paper for retirement income. (My personal bond / income portfolio)
Property worked well for me, about 30% of my wealth. I try to NEVER buy a property that is already marketed as 'For Sale'. Too late by then to get a good deal. You need to beat the sharks to the deal (including the listing agent). Very easy to do with GIS infor.
Greetings, looking for some general advice for my particular situation. I am currently self employed and when not busy I feel like I'm not contributing haha
I am contemplating turning a building in the back of my property into a living area for Airbnb.
I have inheritance in the bank and I hate the idea of spending money because in my mind I feel once I spend I won't ever make money again lol
I don't want to give an exact number of how much I have but it is a decent amount however I realize decent is different for everyone.
My question is I think the Airbnb idea would be a good choice because that would only add value to my property even though it make take years to make back...
Other then that for someone in my position what would be a good recommendation as far as other business or investment outlets are concerned? Buying property with the idea of renting?
I think for me it is very mental because like I said I hate not feeling like I'm making money or contributing to the family so a good investment or staying busy with a new opportunity would help fill in the gaps.
Also another question...how do you decide on whether to take out a loan or spend the money you have in savings?
I appreciate any advice.
Step 1: talk to your city to find out if "Accessory Dwelling Units" are allowed, and if so, what the permitting process is. The AirBnB idea you propose might work - but you need to be "legal" first. Some communities have codes prohibiting you from turning your building in the back into an "ADU."
Step 1: talk to your city to find out if "Accessory Dwelling Units" are allowed, and if so, what the permitting process is. The AirBnB idea you propose might work - but you need to be "legal" first. Some communities have codes prohibiting you from turning your building in the back into an "ADU."
Good point. In my county, only one dwelling is permitted per lot.
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