How We Bought 135 Acres To Use For Airbnbs

Venturing into the world of short-term rentals is exciting, and buying land for Airbnb can be incredibly lucrative. However, it’s also a complex process, especially when partnering with others. We have recently navigated this terrain and would love to share some hard-earned wisdom.

We recently purchased 135 acres with a small cabin, planning to turn it into a multi-unit short-term vacation rental. We’re calling it “Rich Hollow Retreat,” and our journey so far has been full of valuable lessons.

Table Of Contents:

• How We Bought 135 Acres To Use For Airbnbs
• Navigating Partnerships When Buying Land for Airbnb
  • Defining Roles and Responsibilities: Playing to Each Other’s Strengths
  • From Day One, Regular Meetings Were Key.
• Confronting Disagreements Head-On
• Financing Your Dream
  • A Deep Dive into Our Financial Approach
• Finding Your Ideal Traveler and Conquering Competition
• Overcoming Challenges with Grit and Resourcefulness
• Our Airbnb Land Purchase
• Calling All Hosts: The Hosting Handbook

Navigating Partnerships When Buying Land for Airbnb

Unless you’re buying solo, the first hurdle is finding the right partners. While many advise against mixing business with friends and family, I’ve found it can be incredibly rewarding.

The key is clear communication. We held detailed discussions, sometimes with our attorney present, to hash out potential scenarios. What if one of us wanted to sell our share? What about disagreements on the direction of the business? By addressing these potentially difficult topics early on, we set a foundation of trust and transparency.

Defining Roles and Responsibilities: Playing to Each Other’s Strengths

In any business venture, understanding individual strengths is crucial. For us, this meant assigning roles based on expertise.

• Annette, with her financial acumen, took the lead on budgeting, financial modeling, and managing the books.
• My husband Nick, a skilled architect, spearheaded the design and construction aspects.
• Our other partners, Mike and Ingrid, brought their invaluable experience in construction and operations.
• As a seasoned Airbnb host, I, Sarah, gravitated towards guest experience, crafting our brand, and building systems for seamless operations.

In our day-to-day Airbnb co-hosting business, we know just how important it is to stay organized and to have ownership over our unique roles. An organizational chart is crucial in setting up any business. Grab a FREE copy of our downloadable Org Chart right here.

From Day One, Regular Meetings Were Key.

With all of us juggling existing businesses, scheduling regular meetings (twice a week) was non-negotiable. This ensured we stayed aligned on our goals, addressed challenges promptly, and held each other accountable.

Confronting Disagreements Head-On

Don’t let anyone fool you: disagreements happen. Early on, we hit a major snag regarding the size of the land. The initial plan was to purchase 175 acres.

But after running the numbers, I felt deeply uncomfortable with the holding costs. It was a tense time. I expressed my concerns, advocating for a smaller parcel even if it meant losing our initial non-refundable deposit.

Thankfully, the seller later offered to divide the land. Ultimately, buying less acreage turned out to be a blessing, especially when it came to initial development.

Financing Your Dream

Let’s be real, buying land for an Airbnb rental property is a substantial investment. For us, it required a blend of cash reserves, investment rollovers, and even tapping into existing lines of credit. To manage ongoing expenses (mortgage, utilities, renovations), we established a business bank account funded by monthly owner contributions based on projected costs.

A Deep Dive into Our Financial Approach

We’ve explored private lending options and the potential of bringing in more partners, always with an eye on smart financial management. We keep a close eye on our occupancy rate, rental income, and daily rate so we can make informed decisions.

We just covered our favorite financial partner, Relay, in a blog post and YouTube video. Check them out right here for more information on setting up your business accounts and streamlining your finances.

Finding Your Ideal Traveler and Conquering Competition

Even before breaking ground, understanding your ideal guest is paramount. It helps tailor your message and ensure your property caters to a specific niche. For us, we want to offer a luxurious escape in a beautiful natural setting.

However, competition in the area is fierce, making it essential to offer something special. That’s where honing in on your niche and target audience comes in. Are you catering to families, couples, solo adventurers, or luxury travelers?

Once you’ve identified your target, you can start crafting a marketing strategy and building your online presence.

Platforms like Airbnb and VRBO offer valuable resources, along with the opportunity to analyze competitor listings to understand their pricing, amenities, and marketing strategies. But your digital presence shouldn’t end there.

Leveraging social media to showcase your property’s story, behind-the-scenes snippets, and the local area can pique the interest of potential guests. By offering engaging content and creating a strong brand identity, you’ll attract bookings and foster loyalty among past guests.

The goal is to stand out in a saturated market and capture the hearts and wallets of your ideal travelers. If you attract short-term renters you will generate more cash flow than long-term tenants that would typically sign a traditional rental agreement for 12 months.

You know we value hosting with heart over the “heads in beds” approach. Check out our Amazon store for some of the must have products we’re always sure to include in our properties to make sure our guests are happy and comfortable.

Overcoming Challenges with Grit and Resourcefulness

We faced logistical obstacles along the way. The area surrounding our land had a limited pool of skilled labor, making the search for reliable cleaners, contractors, and other essential personnel even more critical. Thorough screening, competitive pay, and building solid relationships became our mantra.

Despite the complexities of buying land for Airbnb, the journey has been fulfilling. This venture has tested us, challenged us, and pushed us outside our comfort zones. It’s also reinforced the value of teamwork, meticulous planning, and unwavering passion.

Our Airbnb Land Purchase

Ultimately, buying land for Airbnb is a rollercoaster. You’ll need more than just spreadsheets and blueprints. This journey demands resilience, flexibility, and a willingness to embrace the unexpected.

From crunching numbers to navigating disagreements, there’s no room for sugarcoating. Yet, despite the demands, the payoff – both personally and financially – is immensely rewarding.

So, whether you’re just beginning to research or are ready to make an offer, remember that each challenge overcome adds another layer to your success story. Just be sure you are mentally, emotionally, and financially ready for the adventure.

Calling All Hosts: The Hosting Handbook

If you loved this post we invite you to check out our one-stop-shop solution for hosts everywhere —the Hosting Handbook! While you can download all the easy to consume, step-by-step tips we use in our own hosting business and create the ultimate “book” the Hosting Handbook is so much more than that! If you’ve consumed or content for years (or just met us!) this is the reference guide for all the amazing and tactical tips we have for running a profitable and, more importantly hospitable, short-term rental. How do we price for pets? How do we fold our towels? What sheets do we buy? How do I purchase a short-term rental? All these questions (and more!) can be answered in the Hosting Handbook! Check it out now!

Want to follow along with our land purchase?

We’re covering it on the podcast! Listen to episode one right here: We Bought Land (Part 1)