[Kelly]

We have an epic (if also frustrating) geo dome away from home in the Kenai Peninsula in Alaska. We have been struggle bussing through a painful remodel since 2021.

We are at the finish line and based on the pain associated with the remodel, considering outright sale. In the midst of getting it ready to sell our incredible neighbor offered to finish it and host it for short term rentals. I’d love your thoughts FI folk.

Bought in 2021: $40k
Remodel spend: roughly $120k
Sale price: $250k based on comps
Seasonal rental: 85% occupancy $200-500/ night based on area comps

Winter rental is an option for northern lights watching, heliskiing, mushing, etc

Be kind, I’m a bit fragile about this after putting heart and soul into this place.

[Jeff]

I’d try the short-term rental option for a year and see how it goes. You can always put it on the market next year if it doesn’t work out for you.

Beautiful area. Been there a couple of times.

[Sam]

Str owner- what percentage will the neighbor/host be keeping? Will they be solely responsible for managing the upkeep and guests expectations (complaints)?

How often are you visiting/plan to in the next year?
How will it impact your taxes?

And after all that, I’d still say to try renting for at least 6 months, hit peak season into fall if possible.

You’ll make back a huge chunk of that remodel cost if you get it listed soon.

[Jennifer]

You should ask your CPA about the short term rental loophole. You can write off your losses on the property against your W2 income.

We have a few Airbnb and real estate investments.

They are not passive but do provide another source of income.

You def need more details as to how much he will charge to manage your Airbnb.

It could be a great option to have a vacation home and make some money when you’re not there

[Soong]

What FEELS right to you in your gut? Do you have the temperament to be a landlord? Would you regret it if you sold it?

I never wanted to be a landlord and we ended up deciding to rent out a house that we purchased and then buy another one to live in because it was an easy place to get rented out and we made good money off it.

We never had terrible renters but I was anxious the entire time we owned it.

We ended up selling it just because I really hated worrying about it and selling it was so worth it!

I went against my gut feeling from the beginning and it wasn’t good for my mental health.

All that to say, I think you have to be someone who can tolerate everything that comes with having your beautiful property in someone else’s hands (even though you may have all the legal documents, deposits etc to protect yourself).

But there are also obviously plenty of people who do rent out their properties short term and/or long term abd do just fine.

You just have to figure out what would be best for you.

[Bob]

My advice/question is after pouring your heart and soul into this property, are you capable of completely checking out to allow your neighbor to rent it?

I am not sure that I am capable of entrusting something like that to anybody.

[Sarah]

If I could move there I would! Looks amazing, and definitely give it a try with your neighbor managing the rental for you

[Amanda]

It would be a great short term rental, but I would be hesitant entrusting someone else with that responsibility.

What would they want for doing that?

It’s a lot of work.

[Joan]

I am in Wasilla, you could Airbnb year round
I have a wedding venue and couples are always looking for a space for out of town guests

Lots of weddings your way too
You would make much more overall as Airbnb

[Julie]

Do you want to be a landlord? I am a str landlord. I like being a landlord but you have to be realistic as to what you want to do and how much you want to rent this out vs stay there.

What would your goal be?

Throw some cash at alaska house to defray costs and be done with renting when cash is in the bank?

[Toni]

I don’t have advice, but I live in Anchorage and would totally rent out this place if you share the link!!

[Norther]

Luxury or unique Airbnbs seem to do well, with a view, hot tub, sauna, etc. This place seems unique and has potential.

I’d add a hot tub or sauna if you throw it on airbnb. And have a reliable cleaner is super important.

On the flip side, airbnb in general seems super saturated. And mid term rentals that cater towards travel nurses is also over saturated. Travel nurses are getting paid less and less, lowering their budget.

Not much growth potential for the standard STR or MTR (thats why I say luxury or unique do better).

[Jeremy]

I don’t have specific advice either, but I would be interested in potentially renting it when I visit Anchorage!

(I live in Utah, but am considering Alaska as one of my home base states to relocate to.).

[Rachael]

Is your neighbor already a host or cohost? There’s definitely a learning curve with that aspect. Also, how much will they charge?

Will it be a percentage or flat fee?

Looks like an awesome place! I’d be tempted to keep it and try to make it work.

[John]

If you know your neighbor and have good relations, I totally would try the STR to see how it goes.

Having built-in management and presumably cleaning services in between tenants, this makes it totally hands off for you.

You just need to establish formal management procedures including the proper accounting so you follow the cash from the rental website to your bank account, after subtracting for fees and management etc.

[Andrea]

No advice but I love the Kinai peninsula. Lived in Cordova and Ketchikan, but would love to go to Kinai more.

If it were me, I’d do the short term rental for a year. See how it goes.

Doesn’t seem like there’s a lot to loose.

Then, you’ll also have a place to vacation while you decide what to do long term.

[Tony]

$200-500 is quite a range. What is ‘seasonal’? 6 months? How much is your neighbor willing to charge for management and turnovers and will he also need to subcontract cleaners as well?

Don’t forget about additional insurance as well as having the appropriate coverage for when it’s vacant and closed down for the off-season.

It was eye opening how much insurance costs for a vacation home that isn’t occupied year round.

I’d get the high and low range on all the things noted above before making a decision, but as a STR host myself I personally would probably just cut ties and sell and not deal with the hassle of managing a property like this remotely.

I’d rather have all my money back to invest rather than clawing back my investment through years of renting.

[Author]

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