Following up on my previous post, Good at acquiring property, bad at making money, I can officially say I have now made money using one of my properties!
I purchased another house in Knoxville a month ago, this one was in pretty good shape though. Unlike the first one which I half-jokingly tell people is really just a “structure”, this newest one is actually livable. It needed some work to make it rentable. The previous owner did not clean very well, so it took a while just to get the main portions of the house wiped down and cleaned. Then there were a few other things wrong, no hot water in the bathroom sink, door knobs that came off when you grabbed them, lights and outlets that did not work, etc. Overall, nothing major, but it took me a month to fix those and get some great deals on furnishing the living areas and a bedroom.
It is listed on Airbnb, so come stay with me if you are in the area.
My first guest, for two nights, stayed with me on Thursday and Friday. Currently I have two people from Denmark staying with me for the week, they are traveling the States for 3 months. With Airbnb you can set a minimum payout amount or you can allow them to direct deposit the money the day after your guests arrive. I choose to get the money as soon as possible since I am still cash flowing the upgrades and things around the house. Perhaps later once I have multiple rooms I will change that to less frequent but larger payments.
The nightly rate right now is set pretty low since I have no reviews and am competing against others who have 30, 60, or even 150 reviews with 5 stars. As my reviews and ratings increase and the room remains booked consistently, I will begin to increase the rate. For now, I have made $241 in 9 days of being an available listing. It is definitely not making me rich on its own, but it’s heading in the right direction.