Anyone here do host Airbnbs or Turo?

Looking to leverage my cashflow with something that isn't totally digital and I'm leaning towards either Airbnb or Turo.

For Airbnb, I think it makes sense to build something specifically for Airbnbs.

Get a good sized lot, $150k. Build 4 units, of 2 bedrooms each (1000 sqft). Common area backyard includes mini putt, shuffleboard, some patio tables and bluetooth speaker setup. Good lighting and turf as well. I don't think I'll do pool but maybe leave room to add it in later - I don't know.

Build for about $175/sqft in the south. Would sub it out myself to save $ but I'm going to have to get a general contractor because construction loans are hard to get without a general contractor.

$700k to build + $150k for lot = $950k

20% down = $190k. Split it with a friend or two = $65k/person. Realistically more because will probably end up buying a lot separate for no HOA and paying cash for it.

In California a vibey 2-bedroom like this goes for about $600-800/night but in the south, it's probably closer to $200/night, but this could be raised once it starts booking up and reviews are stronger. 50% capacity is average.

15 nights/month x 4 units = 60 nights.

60 nights x $200 = $12k/mo.

Mortgage payment @ 30-year fixed at 6.5% = $4,424

So will net like $8k/mo minus maintenance. Cleaning fees billed separate. A couple grand for each partner, nothing crazy.

Bump capacity to 75% after a couple years and nightly price to $300, looking at $27,000 per month which is much more ideal for the amount of work.

I've stayed with some hosts who have done this but I'm interested in seeing if anyone else here has. Would love to brainstorm.

I have a whole other idea for this with Turo as well but honestly too lazy to type it out now that I see the length of this post already.

We used to do Airbnbs (also Booking.com) in the Bordeaux area, not new purpose-built properties but an old farmhouse we renovated. We used to find that we were turning away bookings in the summer months, but during the winter, we only had the odd business person booking.

We never made as much money as we had calculated before starting the project, but we were busy enough to make it worthwhile (pre-Covid). I imagine it will be far less seasonal in California, so you should easily hit 50% occupancy.

Covid forced us to sell up, but I would definitely do it again if the opportunity arose. It's great to have a regular income that doesn't completely rely on the internet. Good luck with it!