I Sold My Airbnb. Here's What I Made

Letting go was bittersweet.

 I Did It...I am no longer an Airbnb Host.  

Earlier this month I closed on the sale of my Airbnb.  The decision to sell was tougher than I anticipated, and it's a bittersweet goodbye.

I learned an important investing lesson with this home:  

The price paid for an investment is more important than any other factor.

Anatomy of a Home Sale

I purchased the house a couple years after moving to Florida, in 2014.  Tampa Bay was at the tail end of recovery from the housing crash of 2008/2009.  By 2014, investment groups were buying up houses all over the area and converting them to rental properties.  Deals were getting harder and harder to find.  I spotted a 2 bedroom, 1 bath home that was in foreclosure and listed at $44,900.  

Out with the old...

In with the new.

The house was ugly!  But the MLS had a major mistake that probably limited traffic even more:  the house wasn't a 2/1, it was a 3/2.  Even so, every single room in the house needed a major overhaul.  While the bank had replaced the leaking roof, they stripped the walls and ceilings of the ruined drywall, leaving disgusting insulation and exposed beams.

When I was shopping for a house, I was looking for a personal residence, and I enjoy projects.  This house was certainly begging for some love.  We called this our home for nearly four years, and in that time we put in a new kitchen, two new bathrooms, and made improvements in every room.  When we decided to buy a brand new house, I figured I would test Airbnb before renting the house long term.  Best.  Decision.  Ever.

By the Numbers

Cost				Income
$45,025	Purchase, 2014
12945	2018 Spending		6780.68	2018 Income
$62,382.82	2019 Spending		$29,852.76	2019 Income
$20,143.76	2020 Spending		35992	2020 Income
$22,654.84	2021 Spending		40034	2021 Income
$8,370.05	2022 Spending		24998	2022 Income
32874.17	Closing Costs		345,000	Sold, July 2022
$204,396	Total Expenses		482657.44	Total Income
			$278,262	Net Income
			$34,783	Annual Gain
			77.25%	Annual Return

I didn't keep a good record of what I spent working on the home while I was living there.  There was a ton of sweat equity as the only parts I hired out were the bathrooms and the kitchen countertop.  In summary, I got a place to live for four years, followed by four years of solid Airbnb income.  Including the profit from the sale with the Airbnb income, my annual ROI was massive!

What's Next?

For now I've deployed the proceeds into the stock and bond market.  The goal is to generate the same amount of income, but all passively.  Emboldened by the transaction, I have now listed my most expensive rental property, which is located in a suburb of Birmingham.  Eventually my real estate investments will consist only of syndicated deals and REITs. 

My Frugal Miser - June 2022 Expenses

June was another brutal month.  But almost half of my spending was to make my Q2 estimated tax payment.  Unfortunately July is going to be bad as well:  I have to get a root canal and might pay my quarterly taxes early to earn extra credit card rewards.

• I paid Q2 2022 estimated taxes:  $4276
• On the way home from our Alaskan cruise our flight was canceled.  I had to change plans and fly directly to a meeting in Chicago.  Since I didn't have my work clothes with me, including a suit, I had significant expenses ($1,261) replacing my wardrobe.  I have filed a Trip Delay claim since my credit card provides that insurance, so it is possible I will be reimbursed for part of this.
• I paid the annual fee on my United Quest credit card and also paid a transaction fee to use a credit card to pay my quarterly taxes.

Fun

We love adventures.  Spending on experiences makes us better humans.  

• I splurged on two excursions during our Alaskan cruise.  In Juneau we toured a real gold mine - I love history.  In Ketchikan we did our first zipline.
• We spent the night on the east coast of Florida after attending a concert with a friend.
• I paid for a flight to Richmond to visit my mom.

June Expenses:  $9,660

$227 Auto (service, gas, insurance, AAA, etc.)

$330 Bank Fees (annual fees on credit cards)
$1,261 Clothing/ Personal Care
$1,516 Fun (vacations, movies, gambling, alcohol, concert tickets)

$501 Food

$122 Health and Dental

$1,050 Household/Home Repairs

$0 Unreimbursed Job Expense

($150) Reimbursed Job Expense (income)

$0 Interest Expense

$384 Miscellaneous

$4,276 Taxes

$139 Utilities 

My Frugal Miser - June 2022 Income

I had a solid month in June. 

I worked 2 meetings jobs, including a 2 week assignment in my hometown of Birmingham, AL and a week in Chicago.  I was paid for the Chicago job as well as two meetings I worked in May.  The Birmingham meeting will be paid in July.

I didn't do any Amazon routes, rideshare/delivery or mystery shopping.  

The Airbnb was blocked several days because I am selling it.  The closing was delayed a few times while the buyer took care of some requirements, so I opened it up to bookings when possible.  Airbnb income was pleasantly resilient considering much of the month started as being blocked off and then availability was adjusted last-minute.  We are very close to closing on the house now.

Rental income was as expected.  I had a $1,500 surprise expense at one property that experienced a leak and some drywall damage.

June Income: $11,833

$0 Mystery Shopping/ Merchandising
$4,900 Meeting Jobs
$0 Gig Apps (Rideshare, Food Deliveries, etc.)
$0 Amazon Deliveries
$3,225 Rental Income (Rental Expenses:  $2,243)
$3,699 Airbnb Income (Airbnb Expenses:  $758)
$9 Interest Income

$0 Other Sources

Investment Accounts Change in Value:  ($19,565)

My investments were down.  Markets continued their downward spiral in June.