Seeking info on financials of Airbnb host

[ysette9]

I'd like to explore the idea of Airbnb-ing out our basement apartment unit as a way to bring in a little extra $$ to pay for things I am lusting after. I hadn't planned on doing this except as a Plan B in case things go south with the finances, in part because I don't want to eat into my Roth conversion space early in FIRE.

That said, I'd like to educate myself on the specifics and how the finances work. In particular are there deductions and depreciation and the like you can claim like for real estate investments? Is there any way to have my cake (income) and eat it too (Roth conversion space)? If you have any nice resources you can point me to I'd be much obgliged.

[uniwelder]

Posting to follow. We just started ABnB our house for special occasions when hotels are booked. From what I understand, if it’s less than 14 days of the year, there are no income taxes due. That might not apply to you, but does for us.

edited to add--- ysette9, what do you normally do with your basement apartment?  Does it just sit empty and you plan to let it sit empty unless you happen to need some extra cash in the future?

[uniwelder]

posting again to get this topic bumped.... I know there are a good number of people here that Airbnb their house.  What do you say?  @ysette9 anything to add?

[driftwood]

If you haven't already, you might want to look at using it as a furnished rental targeted towards traveling nurses. Less turnover than an AirBnB, but still not year(s) long tenants. Most gigs seem to be 4ish months. Also, your tenant will be more work and travel focused, vs being in town for a weekend to party.

You can join and stalk the "Travel Nurse Housing - The Gypsy Nurse" FB group to see who is looking for places and where. I've seen multiple posts looking for places in WA.

In some locations, short-term rental permits are required to run an AirBnB, so check into that.

[ysette9]

If you haven't already, you might want to look at using it as a furnished rental targeted towards traveling nurses. Less turnover than an AirBnB, but still not year(s) long tenants. Most gigs seem to be 4ish months. Also, your tenant will be more work and travel focused, vs being in town for a weekend to party.

You can join and stalk the "Travel Nurse Housing - The Gypsy Nurse" FB group to see who is looking for places and where. I've seen multiple posts looking for places in WA.

In some locations, short-term rental permits are required to run an AirBnB, so check into that.

That is a good suggestion. I’ll think on that. There are competing desires of stability and availability for our own guests should they want to visit in a post-Covid world.

[ysette9]

Posting to follow. We just started ABnB our house for special occasions when hotels are booked. From what I understand, if it’s less than 14 days of the year, there are no income taxes due. That might not apply to you, but does for us.

edited to add--- ysette9, what do you normally do with your basement apartment?  Does it just sit empty and you plan to let it sit empty unless you happen to need some extra cash in the future?

Sorry, I didn’t see this earlier for some reason.

For the time being we aren’t doing much of anything with the basement. I am hoping to kick off a big kitchen remodel, in which case our family will move into the basement unit for the duration. I also need to do some work (electrical, insulation) to the basement before considering furnishing it. As it is when someone walks across the living room floor the ceilings in the basement sound like a herd of elephants is stampeding. Not a good situation for AirBnB. :)

In the future it is sort of up in the air. We’d like it for guests when family comes to stay for weeks at a time. Most of our friends are also out of state. If we needed some extra income that would be great. My concern is that my #1 goal at the moment is Roth conversions so I am wary of ordinary income that can’t be offset with deductions or depreciation.