[Layne]

Hi all.
I am looking for some advice.
My husband and I are in the process of paying off debt.

We have an above garage apartment that is a blank canvas. Right now it’s just a wide open room.

We live in a desirable location and based on local calculations could Airbnb for around $2,000 a week in the summer.

That could significant help with paying off our debts.

Does it make sense to put in the money to get it up and running or do we keep hustling to pay off debt FIRST, then finish the apartment after that?

[Carol]

You may be better off renting to someone fulltime. Less work, but make sure you do all homework on who you are renting to.

I like secondary Ed students, because they are usually gone after the year is done, and I have a cpl months to get place ready for the next school year.

Mine is fully furnished, all they need to bring is bedding and their clothes.

If you get a crappy student, you know they’ll be gone soon enough.

I’ve had good luck with this way of renting my little suite.

[Katie]

Generally, most economic advisers would say pay off debt before incurring more debt to try to pay off debt.

[Sue]

Maybe you should read all of Airbnb’s rules you have to follow for everything before considering using Airbnb

[Katy]

I would totally check the local bylaws and policies. A lot of cities are cracking down on them and will find you if you don’t have a proper business license.

[Carol]

I think you should get your paid off first. Then whatever money you can make out of your rented area will be yours to keep and not to owe.

Plus, you don’t have to worry about failure.

[Ashley]

Furnish it comfortably and rent it to a traveling nurse. They’ll be busy working, and if you don’t like them, they’re only staying a few months.

There are agencies you can sign up with that will arrange a suitable renter for you.

[Kathy]

Before renovations and renting make sure you check with your homeowners insurance first!

Very important

[Linda]

AirBnB is fast becoming less desirable and less easy to make a reliable income.

Can you rent it out year round with a lease instead? Might be more reliable.

[Kristie]

Will it need any renovations like adding a bathroom or kitchenette?
What will be the actual cost to have it furnished and move in ready?
5k? 10k? More?

Is it legal in your town?

It’s definitely worth investigating and running the numbers.

If it only needs minimal work (20k or less) and is legal, it might be worth doing.

[Annmarie]

Does your city/town allow for you to rent out the “apt” above your garage. Has it been inspected for it?

In my state there are a lot of hoops to jump thru to legally be able to rent out an apt.

I would do you research first before deciding. Meanwhile keep at reducing the debt.

Whatever you decide good luck to you.

[Dorinda]

Pay off your debts first. Then work on investments. All Investments have somewhat of a gamble, no guarantees.

The Airbnb may sound wonderful and may one day turn into something wonderful however you need to continue on the path you’re on now and regardless of how the Airbnb turns out you would enjoy it a lot more later.

[Mary]

– Really depends on several things:
– how much u currently owe now? Too much?

-And if you can take on more debt for the room renovation.
– And can You get it up and running in 30 days? So, you get $$$ during the best months of the summer?

– You’re going to hire an a contractor for the whole job?Then you’re going to be charged 40-50% more. My mark up is huge.

– To reduce the total Expense Of the renovation, can u or family Do some if the work?

Like: painting or caulking or Installing doorknobs or installing Bathroom fixtures (towelbar, etc). I cannot do it all, Unfortunately, I haven’t learned how to do a faucet yet.

– fyi- home depot has: Wagner rolling painter that helps you paint one room, 2 coats in 1- 2 hours. You do Need to tape the edges if you don’t know how to edge.

– We have one person do the edges and the other one paint. Always cover up the floors and tape around the trim around doors, windows, closets, cabinets, etc. Just In case you drip!”

– There’s a cool edging paintbrush at home depot, and other hardware stores, that helps you do edges almost perfectly.

No taping required! Go take a little practice. But after your tenth time you’ll get it! Tip: Don’t overload the paintbrush with too much paint.

– Also hgtv has that show about renovated vacation rentals and shows how it’s a good return on Money. $$$.

– also Depends on how much $$$$ you spend to renovate and maintain and how cute you make it.

– Then do u pay off renovation debt or other debt first? & when will u break even (actually make more money than u spent On the renovation and maintaining it) or not or make money Until the renovation 100% paid off.

– If the decision to renovate is Good or bad depends on the answer to these questions.

– & most of the time, it’s yes do the renovation. Unless already buried in debt.

– First decide Layout of the room and decide what u need.

– Where are you going to put a bathroom Or do u have bathroom access and This will probably be your most costly item installing a bathroom.

The biggest thing is having access to water And tying into the sewer.

– do you need a Air conditioner, ceiling fan or fan? Wall heater? They sell window units at home depot starting at $150.

Or you Can get a white wall unit for $2000 at home depot. & Hire an electrician to install A pluga plug, And hire a handyman to install the air conditioner. $2k is Much cheaper than getting one from an electrician for $5-6000!

– Second Decide on a theme/look/decor. And find pictures of what do you want it to look like- ish (be Flexible, yur rental will not look 100% like pics! But you can get close or the feel with paint!)

– but A mish mash of crazy old furniture will not rent for much $$$$ or at all, unless you’re in Paris or On the popular areas of California/ beach or somewhere extremely popular)

– so, third, start with a list of the furniture and appliances you will need To make a comfortable spot for people to stay…

– fourth, You could start collecting free Furniture and decorations items Off curbs (decor & furniture) and off free sites and facebook.

Free or Almost free. If you plan to paint the furniture!!! Then Try to avoid oak furniture or oak cabinets as they do not paint well. The wood is naturally pitted and does not Look good after painting.

– Never take furniture or cabinets that need a lot of repairs, if you don’t know how to do it. You have to hire somebody to do it and you don’t end up saving money! And you have to pay for disposal!

– Decide on your desired color for the walls and the furniture! colors: White or black, green, or blue! Or other color!

– Try to avoid oak furniture or oak cabinets as they do not paint well. The wood is naturally pitted and does not Look good after painting.

– You could get your bed, 2 night stands, dresser, sofa and 2 end tables, coffee table, small desk/ chair or small eating table and chairs and fan

– You could paint all the furniture one color like, white, brown, black or other color so they match and look trendy.

– And we Have discount new appliance stores so you can get kitchen Appliance set under $1000. If you want a full kitchen or smaller Kitchenette.

– u can get discounted furniture at Goodwill ($5- 100) and 2nd hand stores. They have lots of great furniture; also check out Habitat for humanity.

– You will be surprised what you find! I got a $3000 Stainless steel name brand oven for only $250 at Habitat for humanity. No rust!
– Also, They had Brand new stainless steel stove vents for $50. Hit or miss but great deals.

– They had White undermount sinks for a bathroom for $50,
– They had luxury vinyl $40 a box!

– In style Tile at $1 a pc instead of $15-20 each! Although bathrooms are tiny and don’t require a lot of tile so it’s ok to buy it at the hardware store.

And usually tile does not cost a lot to install.
-Maybe you could Install.

The tile yourself & Try to find a friend who’s installed tile before to show u. So, you could borrow Their tile saw. U Would have to buy your own saw blade.

Not A big deal! you just have to buy the blade That’s made for your tile. You need a special blade for porcelain & Glass. Or you end up with chipped tile.

– I hired someone To install my
Tile, He kept adding costs.Costs for each area that were not included in the original quote.

But I wanted a few more pieces, Going to the ceiling, so I hired my tile guys assistant and we did it together. Cost me $100 vs $1000!

– And if you live in a cold area,
Consider installing floor heat in the bathroom and the bedroom. (Not cheap) something more cheaper: you can install a wall heater in the bathroom.

– I got 17 cabinets for $350 off marketplace They were nice and maple and easy to paint. And never Take damage rain soaked, ruined cabinets, There r tons more cabinets out there! Cause then you have to pay for disposal! No no!

– Always carry tool box or tools to check out items you’re picking up. If you can check and see if they work or turn on. Bring screwdrivers that is flathead and phillips x.

Cordless Drill if u have. Bring a crowbar! & bring C, D, AA, & AAA batteries in your car always.

– Someone tried to give us “free paint” and half of it was old! It was stinky And was old and rotten. It needed to be disposed of.

– Check out the “oops” new paint at home depot and lowe’s.

The chance of finding an exact color is hard. If you’re determined on 1 or 2 specific colors, then this is not for you. But I found 5 gallon Exterior and interior paint buckets for $20- 40! Instead of $200+.

I picked light colors and then I Could add other darker paint colors to tint. And create a beautiful color or ombre.

And this could be used in closets or stairwells or Areas not in the main rooms. Up to you!

Good luck!

[Lisa]

Make sure it’s a legal living area with appropriate safety features and exits. And that you can do it legally in your neighborhood.

If you cross those hurdles then the rest should be fun.

I also agree on longer term rentals vs. cleaning a place every few days. And that’s if you get customers.

Takes a while to build up reviews and you have to have amazing photos.

[Terrie]

I echo the others that have said to check on your zoning, HOA bylaws, deed restrictions, etc.

And check out landlord responsibilities, building codes and all of that stuff before you sink money into it.

If you’re going to do longer-term leasing, I highly recommend using a property manager.

[Michele]

Watch for free stuff and clean or paint it. Book shelf dresser, tiny table with 2 chairs kitchen items and decor, night stands. Thrifting will help or borrow from your home.

Keep it simple uncluttered and white new sheets you can bleach. Look in Pinterest for a clean open look.

The first week open should pay for the new bed on a antique frame.

[Ambry]

Something to consider on the liability end is that none of the fumes etc can get into that apartment or you could have significant issues later when you have tenants.

Oc, like the others said, permits, inspections, and insurance as the homeowner for liabilities etc are also legal and financial concerns to consider.

[Jackie]

I remember well how my son foresaw how his multi family house was going to bring in huge gobs of money from airb&b.

After spending significant time, effort, and money, we saw that market become saturated in our area, and the bookings just were not there.

I wouldn’t count the chickens before they hatched.

[Author]

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