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.