Check out our scenarios below and get inspired!
Disclaimer: Images are for illustrative purposes only, not pricing. AND, please note that the following investment scenarios are provided for informational purposes only and do not constitute financial or investment advice. We are not financial planners or accountants, and the calculations presented here are based on assumptions and estimations. We strongly recommend consulting with a qualified financial professional to verify the accuracy of these calculations and to make informed investment decisions. While these scenarios may appear promising, always exercise due diligence when considering any investment opportunity. Assumptions are below and we welcome your comments and/or corrections.
Scenario One
- Cabin Spend: $60,000
- Daily Rate: $200
- Occupancy Rate: 60% (219 days/year)
- Annual Gross Income: $200 x 219 = $43,800
- Airbnb Charge (3%): $43,800 x 3% = $1,314
- Annual Net Income (Before Running Costs): $43,800 - $1,314 = $42,486
- Estimated Running Costs: $6,450/year
- Annual Net Income (After Running Costs): $42,486 - $6,450 = $36,036
- Payback Time: $60,000 / $36,036 ≈ 1.67 years
- 10-Year ROI: ($36,036 x 10) - $60,000 = $300,360
- Average Yearly ROI: ($36,036 / $60,000) x 100 ≈ 60.06%
Scenario Two
- Cabin Spend: $70,000
- Daily Rate: $250
- Occupancy Rate: 60% (219 days/year)
- Annual Gross Income: $250 x 219 = $54,750
- Airbnb Charge (3%): $54,750 x 3% = $1,643
- Annual Net Income (Before Running Costs): $54,750 - $1,643 = $53,108
- Estimated Running Costs: $6,450/year
- Annual Net Income (After Running Costs): $53,108 - $6,450 = $46,658
- Payback Time: $70,000 / $46,658 ≈ 1.50 years
- 10-Year ROI: ($46,658 x 10) - $70,000 = $396,580
- Average Yearly ROI: ($46,658 / $70,000) x 100 ≈ 66.65%
Scenario Three
- Cabin Spend: $80,000
- Daily Rate: $300
- Occupancy Rate: 60% (219 days/year)
- Annual Gross Income: $300 x 219 = $65,700
- Airbnb Charge (3%): $65,700 x 3% = $1,971
- Annual Net Income (Before Running Costs): $65,700 - $1,971 = $63,729
- Estimated Running Costs: $6,450/year
- Annual Net Income (After Running Costs): $63,729 - $6,450 = $57,279
- Payback Time: $80,000 / $57,279 ≈ 1.40 years
- 10-Year ROI: ($57,279 x 10) - $80,000 = $492,790
- Average Yearly ROI: ($57,279 / $80,000) x 100 ≈ 71.60%
Scenario Four
- Cabin Spend: $90,000
- Daily Rate: $350
- Occupancy Rate: 60% (219 days/year)
- Annual Gross Income: $350 x 219 = $76,650
- Airbnb Charge (3%): $76,650 x 3% = $2,300
- Annual Net Income (Before Running Costs): $76,650 - $2,300 = $74,351
- Estimated Running Costs: $6,450/year
- Annual Net Income (After Running Costs): $74,351 - $6,450 = $67,901
- Payback Time: $90,000 / $67,901 ≈ 1.33 years
- 10-Year ROI: ($67,901 x 10) - $90,000 = $589,010
- Average Yearly ROI: ($67,901 / $90,000) x 100 ≈ 75.45%
Scenario Five
- Cabin Spend: $100,000
- Daily Rate: $400
- Occupancy Rate: 60% (219 days/year)
- Annual Gross Income: $400 x 219 = $87,600
- Airbnb Charge (3%): $87,600 x 3% = $2,628
- Annual Net Income (Before Running Costs): $87,600 - $2,628 = $84,972
- Estimated Running Costs: $6,450/year
- Annual Net Income (After Running Costs): $84,972 - $6,450 = $78,522
- Payback Time: $100,000 / $78,522 ≈ 1.27 years
- 10-Year ROI: ($78,522 x 10) - $100,000 = $685,220
- Average Yearly ROI: ($78,522 / $100,000) x 100 ≈ 78.52%
Assumptions
- Room occupancy: We went with what we think is a super low estimate of 60% occupancy. We would expect this to increase with the cabin spend.
- Day rates: We increased with how much you spend on the cabin
- AirBnB 3%
- Estimated running costs: for each cabin scenario were derived by considering average monthly utility expenses for a single-room cabin, cleaning costs based on a cleaning service every three days during occupancy, and an annual allocation for maintenance and miscellaneous expenses, providing a realistic approximation of the ongoing expenses associated with maintaining and operating a cabin rental.