So for the last decade or so I have been thinking about how I could economically buy some cheap rural land build my own tiny home for the purpose of getting away on the weekends from the hustle and bustle of my city. I would also plant fruit trees and landscape the land for one day I would retire and build a larger custom home to live in(12 years away).
With the invention of airbnb I thought maybe I could rent this retreat out and this could pay for my 2nd home. But logistically and financially the numbers never worked out so I scrapped that idea. But what if I rented my own home out on airbnb and used the cabin to vacation to when I had tenants staying at my home?
I currently live in a home that has a value of of about $360,000. It is in a great location for Airbnb rentals. I feel confident I could get $200-250 a night for my home on airbnb.
The tiny home would be under 200 sqft so I can avoid building permits. No utilities. Small solar setup for about $1,000 for lights and water pump.
I think I could pull this off for about $25,000. And if the idea flops and we (my wife) hates it I can recoup that minus a 6% realtor fee.
Initial investment of $25,000 means i'm paying $1,750 a year that I could be earning in my vanguard account. Another $500 in gas ,wear and tear for traveling. Taxs and misc another $250. Yearly cost would come out to $2,500 per year or 12-15 airbnb nights. Does not take into account land appreciates 3% per year.