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Yahoo
6 days ago
- Business
- Yahoo
A tiny-house investor racked up $20,000 in credit card debt to set up a property. Now the 384-square-foot home brings in up to $1,500 a month.
After buying two single-family homes, Manny Reyna added a tiny home to his portfolio. He dealt with a handful of unexpected costs, from a septic system to electrical installation. He now earns up to $1,500 monthly from the tiny home and plans to add more to his land. Manny Reyna admits that when he purchased his first tiny house, he was underprepared. "I didn't know what I was doing," the financially independent real estate investor told Business Insider. As an Army vet, Reyna leveraged a 0% down VA loan to buy his first home in San Antonio in 2021. At the time, he had about $12,000 to his name, nearly all of which went toward closing costs. A year later, he used a VA loan again to buy a second single-family home. He moved in with his family, rented the first to a long-term tenant, and started bringing in passive rental income. When the opportunity to add a fully furnished, 384-square-foot tiny home to his portfolio arose months later, he jumped, figuring he could generate quality returns by listing it on Airbnb. And that's essentially what happened: Reyna and the seller, who had built the tiny home on his own land, agreed on seller financing for the $50,000 property. Plus, the seller agreed to lease his land to Reyna, saving him the headache of finding, buying, and preparing another plot of land. "I started renting it out on Airbnb immediately, and it took off," Reyna said. But as foot traffic on the property increased, the landowner wanted more privacy and gave Reyna six months to move the tiny home. Reyna's first obstacle was figuring out where to put the tiny home. He had two main criteria for the land: It had to be within a 30-minute drive from his home and a place where people were already visiting. "I didn't want to have to buy land in the middle of nowhere, stick tiny homes there, and then have to create some sort of buzz to get people out there," he said. A software tool called AirDNA that helps investors find top short-term rental markets helped narrow his search, and he eventually settled on an area near Medina Lake. As for the criteria for the land, "the biggest things that I wanted were no HOA and no deed restrictions. I didn't want to have to spend a bunch of money getting permits and cutting through all this red tape." His real estate agent, who had connected him with the tiny home builder, helped him land a deal on a piece of land that met his criteria. "In Texas, at that time, land was going for close to $80,000 an acre," said Reyna, who found a motivated seller and paid $65,000 for his 1.6 acres. "I got lucky. The lady that I bought the land from had inherited it, and she didn't want it at all. She took the first offer that I gave her." He secured the land without much upfront cash by using a VLB loan, a program that allows veterans in Texas to buy land with competitive interest rates and low down payments. "I had never bought land before. It's a whole other process," Reyna said, adding that it took four months to close. "When you buy the land, you need to get a surveyor, which is like an engineer who looks at the parameters of the land, maps it all out for you, and gives you a certificate saying, this is what your land looks like." The surveyor was the first of many professionals Reyna would hire to prepare the land for the tiny home properly. Reyna's next hires included a land-clearing company to prepare the land and a moving company to transport the tiny home. The movers "dropped it on some cement blocks," he said. "It's not on wheels or anything — it sits on cement blocks — and I'm not going to lie, it didn't look very nice aesthetically at first. So, I had to go build a deck." Additionally, he added an 8-foot privacy fence around the home that cost about $4,800. His land came with a water meter, which saved him from drilling a well, but that was about it. His largest expense was installing a septic system, a complex process that cost him about $15,000: "It required a permit because it's considered a plumbing system, so I had to talk to specialists. They charged me to design it and install it." Installing electricity cost him another $3,400 — about $1,900 for the pole setup, plus another $1,500 for trenching and wiring — and required independent research. "The electrician asked, 'What volts do you want?' And I was like, 'I have no idea,'" Reyna said. "There's so much that goes into this." He funded the tiny-home relocation and build-out project with rental income from his single-family home and savings from his full-time project management job. He also used two credit cards with $20,000 limits and long 0% interest periods: 15 and 21 months. He split his expenses between the two cards to maximize the promo periods. As he racked up a roughly $20,000 balance between the two cards, "I questioned my life choices a lot of the time and wondered, 'What am I doing? Is this going to be completely botched?'" he admitted. "But I think that's part of it, right? Maybe if you don't question yourself or if you don't feel that way, maybe you're not doing things the right way or pushing the envelope enough." After three long and expensive months developing the land, he reopened his first tiny home for business in July 2023. He threw all of his profit, plus savings from his W-2, toward his credit card debt in order to pay it off before incurring interest. "Now, the only costs I really have are the cost of the land and the utilities," he said. The carrying cost of the land is about $400, and his monthly "mortgage" is a $290 payment that goes directly to the seller. Reyna initially listed the tiny home as a short-term rental just on Airbnb, but he now uses a variety of platforms, including VRBO, Hipcamp, Facebook Marketplace, and Furnished Finder, and offers it as a midterm rental. "I try to do a shotgun approach to see who's going to bite first, rather than just solely relying on Airbnb," he said, though he prefers midterm stays (more than 30 days but less than a year). He's found this strategy to be more lucrative than renting to long-term tenants and much easier to manage than short-term stays. Once the first tiny home started profiting consistently — on average, he said, it does between $1,200 and $1,500 a month in revenue — Reyna added a second tiny home to his land. "The cool thing with the tiny homes is that they're so cheap to set up that the cash-on-cash return is pretty good once you can establish them at scale," said Reyna, who plans to add more properties to his lot. "If you can get more than one going, it's just pure profit, and it's not too much maintenance, either." He's experimenting with other ways to "hack" his land, he said: "We've added two RV plug and play connections to the land, which we expect to bring in $900 to $1,000 a month, and we've listed a plot of the land to rent through Sniffspot, which we estimate revenue to be $200 to $300 a month." Between his current rentals, he's on track to earn about $85,000 in 2025, he said. BI verified his property ownership by looking at deeds and confirmed that he's bringing in rental income by viewing screenshots of his Airbnb dashboard and reviewing one of his midterm rental lease contracts. "The tiny houses are the ones that are making the most profit for me," said Reyna, who quit his job in early 2025 and moved to Tokyo with his family. He has a team in Texas that helps him manage the properties. He classifies the tiny home project as a success, but if he could go back in time, he'd do things differently. "I was trying to build the plane before flying it," he said. His top advice for prospective tiny home investors is to "look at everything from an all-encompassing view. Consider the cost of everything so that you're not figuring it out as you go, like I did. Also, try to find land with infrastructure already built — at the very least, a water meter, because it's so expensive to get a well. If you can help it, electricity, too." Read the original article on Business Insider
Business Insider
6 days ago
- Business
- Business Insider
A tiny house investor racked up $20,000 in credit card debt to set up a property. Now the 384-square-foot home brings in up to $1,500 a month.
When Manny Reyna purchased his first tiny house, he admits he was underprepared. "I didn't know what I was doing," the financially independent real estate investor told Business Insider. As an Army vet, Reyna leveraged a 0% down VA loan to buy his first home in San Antonio in 2021. At the time, he had about $12,000 to his name, nearly all of which went toward closing costs. A year later, he used a VA loan again to buy a second single-family home. He moved in with his family, rented the first to a long-term tenant, and started bringing in passive rental income. When the opportunity to add a fully furnished, 384-square-foot tiny home to his portfolio arose months later, he jumped, figuring he could generate quality returns by listing it on Airbnb. And that's essentially what happened: Reyna and the seller, who had built the tiny home on his own land, agreed on seller financing for the $50,000 property. Plus, the seller agreed to lease his land to Reyna, saving him the headache of finding, buying, and preparing another plot of land. "I started renting it out on Airbnb immediately, and it took off," said Reyna. But as foot traffic on the property increased, the landowner wanted more privacy and gave Reyna six months to move the tiny home. Buying 1.6 acres of land for $65,000 Reyna's first obstacle was figuring out where to put the tiny home. He had two main criteria for the land: It had to be within a 30-minute drive from his home and a place where people were already visiting. "I didn't want to have to buy land in the middle of nowhere, stick tiny homes there, and then have to create some sort of buzz to get people out there," he said. A software tool called AirDNA that helps investors find top short-term rental markets helped narrow his search, and he eventually settled on an area near Medina Lake. As for the criteria for the land, "the biggest things that I wanted were no HOA and no deed restrictions. I didn't want to have to spend a bunch of money getting permits and cutting through all this red tape." His real estate agent, who had connected him with the tiny home builder, helped him land a deal on a piece of land that met his criteria. "In Texas, at that time, land was going for close to $80,000 an acre," said Reyna, who found a motivated seller and paid $65,000 for his 1.6 acres. "I got lucky. The lady that I bought the land from had inherited it, and she didn't want it at all. She took the first offer that I gave her." He secured the land without much upfront cash by using a VLB loan, a program that allows veterans in Texas to buy land with competitive interest rates and low down payments. "I had never bought land before. It's a whole other process," said Reyna, noting that it took four months to close. "When you buy the land, you need to get a surveyor, which is like an engineer who looks at the parameters of the land, maps it all out for you, and gives you a certificate saying, this is what your land looks like." The surveyor was the first of many professionals Reyna would hire to prepare the land for the tiny home properly. Racking up $20,000 in credit card debt to complete the project Reyna's next hires included a land-clearing company to prepare the land and a moving company to transport the tiny home. The movers "dropped it on some cement blocks," he said. "It's not on wheels or anything — it sits on cement blocks — and I'm not going to lie, it didn't look very nice aesthetically at first. So, I had to go build a deck." Additionally, he added an eight-foot privacy fence around the home that cost about $4,800. His land came with a water meter, which saved him from drilling a well, but that was about it. His largest expense was installing a septic system, a complex process that cost him about $15,000: "It required a permit because it's considered a plumbing system, so I had to talk to specialists. They charged me to design it and install it." Installing electricity cost him another $3,400 — about $1,900 for the pole setup, plus another $1,500 for trenching and wiring — and required independent research. "The electrician asked, 'What volts do you want?' And I was like, 'I have no idea,'" said Reyna. "There's so much that goes into this." He funded the tiny home relocation and build-out project with rental income from his single-family home and savings from his full-time project management job. He also used two credit cards with $20,000 limits and long 0% interest periods: 15 and 21 months. He split his expenses between the two cards to maximize the promo periods. As he racked up a roughly $20,000 balance between the two cards, "I questioned my life choices a lot of the time and wondered, 'What am I doing? Is this going to be completely botched?'" he admitted. "But I think that's part of it, right? Maybe if you don't question yourself or if you don't feel that way, maybe you're not doing things the right way or pushing the envelope enough." After three long and expensive months developing the land, he reopened his first tiny home for business in July 2023. He threw all of his profit, plus savings from his W-2, toward his credit card debt in order to pay it off before incurring interest. "Now, the only costs I really have are the cost of the land and the utilities," he said. The carrying cost of the land is about $400, and his monthly "mortgage" is a $290 payment that goes directly to the seller. Bringing in up to $1,500 a month and adding a second tiny home to the land Reyna initially listed the tiny home as a short-term rental just on Airbnb, but now uses a variety of platforms, including VRBO, Hipcamp, Facebook Marketplace, and Furnished Finder, and offers it as a mid-term rental. "I try to do a shotgun approach to see who's going to bite first, rather than just solely relying on Airbnb," he said, though he prefers mid-term stays (more than 30 days but less than a year). He's found this strategy to be more lucrative than renting to long-term tenants and much easier to manage than short-term stays. Once the first tiny home started profiting consistently — on average, he said it does between $1,200 and $1,500 a month in revenue — Reyna added a second tiny home to his land. "The cool thing with the tiny homes is that they're so cheap to set up that the cash-on-cash return is pretty good once you can establish them at scale," said Reyna, who plans to add more properties to his lot. "If you can get more than one going, it's just pure profit, and it's not too much maintenance, either." He's experimenting with other ways to "hack" his land, he said: "We've added two RV plug and play connections to the land, which we expect to bring in $900 to $1,000 a month, and we've listed a plot of the land to rent through Sniffspot, which we estimate revenue to be $200 to $300 a month." Between his current rentals, he says he's on track to earn about $85,000 in 2025. BI verified his property ownership by looking at deeds and confirmed that he's bringing in rental income by viewing screenshots of his Airbnb dashboard and reviewing one of his mid-term rental lease contracts. "The tiny houses are the ones that are making the most profit for me," said Reyna, who quit his job in early 2025 and moved to Tokyo with his family. He has a team in Texas that helps him manage the properties. He classifies the tiny home project as a success, but if he could go back in time, he'd do things differently. "I was trying to build the plane before flying it," he said. His top advice for prospective tiny home investors is to "look at everything from an all-encompassing view. Consider the cost of everything so that you're not figuring it out as you go, like I did. Also, try to find land with infrastructure already built — at the very least, a water meter, because it's so expensive to get a well. If you can help it, electricity, too."
Yahoo
6 days ago
- Business
- Yahoo
Airbnb generates an estimated $590 million in Kentucky in 2024
KENTUCKY (FOX 56) — Airbnb saw a record year in 2024. The platform has paved the way for tourists to visit off-the-beaten-path destinations since its launch in 2007. Read more of the latest Kentucky news Data shows that the surge in popularity is predominantly in less saturated areas or for travelers in need of more flexible accommodations, and its demand continues to rise year after year, according to AirDNA, the leading provider of data and analytics for the short-term rental industry. In 2024, it welcomed its two billionth guest nationwide. 'In doing so, they're also supporting local economies—from small towns to big cities—and driving meaningful economic impact into every corner of the country,' Airbnb wrote. 'According to newly released estimates, travel on Airbnb generated more than $90 billion in economic activity across the United States in 2024—a record figure reflecting the total contribution driven by guests, hosts, and the businesses guests support.' A new study breaks down Airbnb's economic impact in 2024 amid battles against short-term rental restrictions. In November 2024, FOX 56 reported that Lexington supports over 1,000 short-term rentals, of which, at the time, only 729 were licensed. Airbnb generates an estimated $590 million in Kentucky in 2024 Nelson County paramedic dies after on-duty crash Vikings' Purple People Eater, Kentucky native, Jim Marshall, dies at 87 According to Airbnb, in Kentucky, it contributed: $590.5 million in total contribution to gross domestic product 8,700 jobs supported $146.5 million in tax revenue The typical guest in the U.S. spent more than $775 per trip on other goods and services like restaurants, entertainment, shopping, and other local businesses. That influx of visitor spending helped support more than one million estimated jobs nationwide last year, helping to generate over $52 billion in labor income,' the study reads. Airbnb said that short-term rental regulations have caused major cities like New York to forego as much as $82 million. Click here for a state-by-state view of Airbnb's economic impact. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Business Insider
21-05-2025
- Business Insider
20 vacation hot spots where short-term rental prices surge in the busy season — and how to avoid the markup
If you're heading to a vacation hotspot this summer, you could be paying a markup of more than 100% for a stay at a short-term rental. A new study from Bankrate identified 20 vacation hotspots where short-term rental prices surge during their busy season — 10 in the fall and winter and 10 in the spring and summer. The study used rental data compiled by AirDNA, a vacation rental analytics firm, to determine where rental prices hiked the most in 2024. It also focused on properties that were single-family homes with at least two bedrooms. Augusta, Georgia, experienced the highest peak season markup, with the average daily rate for short-term rentals spiking 178% in the spring, due to the Masters Tournament. A family previously told Business Insider that renting their home out for Master's week paid their mortgage for the year. Other locations that spiked in the spring and summer included water destinations, like Long Island, New York, and Lake of the Ozarks, Missouri, as well as Bozeman, Montana, which is near Yellowstone National Park. Bozeman also was among the highest markups in the winter due to its skiing. Places that saw the biggest markups in fall and winter included sport and skiing destinations such as Vail, Avon, and Steamboat Springs in Colorado, as well as Green Bay, Wisconsin, and Ann Arbor, Michigan. The biggest fall or winter markup was 125% in Oxford, Mississippi, which attracts thousands every fall to watch Ole Miss football. Alex Gailey, a data analyst at Bankrate, told BI the big swings in rental prices at these popular destinations was "eye-popping." She also noted many Americans are saying they still plan to travel this year but that they are trying to be more budget-conscious. "Flexibility is one of the best ways you can save on travel," Gailey said. For travelers who do want to visit these hotspots in the busy season, Gailey said it's best to plan ahead of time and book early. Travelers who have flexibility in their travel dates should also use it, as short-term rentals tend to be a lot cheaper during the week than on the weekends. She also said if you can avoid a busy season visit, you're likely to find better rates visiting these places in the shoulder seasons. Another option is to stay in an adjacent city that is close by but does not experience the same level of price hike. For instance, staying in Salt Lake City can be a lot more budget-friendly than Park City, where short-term rentals can cost over 103% more on average in the fall or winter season, according to Bankrate. Gailey also said taking advantage of credit card points and other travel rewards can be a good way to make travel more budget-friendly despite broader economic uncertainty. Here's the full lists of locations and the average peak season markup for short-term rentals, according to the Bankrate study. Spring and summer 1. Augusta, Georgia Maximum average daily rate: $541 Minimum average daily rate: $194 Peak season markup: 178% 2. Long Island, New York Maximum average daily rate: $785 Minimum average daily rate: $362 Peak season markup: 117% 3. Albany/Saratoga Springs, New York Maximum average daily rate: $439 Minimum average daily rate: $224 Peak season markup: 96% 4. Bozeman/Yellowstone National Park Maximum average daily rate: $611 Minimum average daily rate: $313 Peak season markup: 95% 5. Lake of the Ozarks, Missouri Maximum average daily rate: $407 Minimum average daily rate: $212 Peak season markup: 92% 6. Lake Norman, North Carolina Maximum average daily rate: $692 Minimum average daily rate: $364 Peak season markup: 90% 7. Norfolk/Virginia Beach, Virginia Maximum average daily rate: $435 Minimum average daily rate: $231 Peak season markup: 88% 8. Idaho Falls/Rexburg, Idaho Maximum average daily rate: $377 Minimum average daily rate: $201 Peak season markup: 87% 9. Providence, Rhode Island Maximum average daily rate: $388 Minimum average daily rate: $211 Peak season markup: 84% 10. Myrtle Beach, South Carolina Maximum average daily rate: $349 Minimum average daily rate: $195 Peak season markup: 79% Fall and winter 1. Oxford, Mississippi Maximum average daily rate: $635 Minimum average daily rate: $283 Peak season markup: 125% 2. Vail/Avon, Colorado Maximum average daily rate: $946 Minimum average daily rate: $424 Peak season markup: 123% 3. Green Bay, Wisconsin Maximum average daily rate: $457 Minimum average daily rate: $215 Peak season markup: 113% 4. Steamboat Springs, Colorado Maximum average daily rate: $694 Minimum average daily rate: $335 Peak season markup: 107% 5. Ann Arbor, Michigan Maximum average daily rate: $414 Minimum average daily rate: $201 Peak season markup: 105% 6. Park City, Utah Maximum average daily rate: $888 Minimum average daily rate: $436 Peak season markup: 103% 7. Aspen/Snowmass, Colorado Maximum average daily rate: $1,082 Minimum average daily rate: $535 Peak season markup: 102% 8. State College, Pennsylvania Maximum average daily rate: $642 Minimum average daily rate: $315 Peak season markup: 98% 9. Bozeman/Yellowstone National Park, Montana Maximum average daily rate: $611 Minimum average daily rate: $313 Peak season markup: 95% 10. Mammoth Lakes, California Maximum average daily rate: $554 Minimum average daily rate: $303 Peak season markup: 83%
Yahoo
21-05-2025
- Business
- Yahoo
20 vacation hot spots where short-term rental prices surge in the busy season — and how to avoid the markup
Short-term rental prices can surge by over 100% at some vacation hotspots, a Bankrate study found. The study named 20 places with the biggest rental prices surges, like Augusta, Georgia, and Vail. Travelers should book early and be flexible to avoid the hikes, a Bankrate data analyst said. If you're heading to a vacation hotspot this summer, you could be paying a markup of more than 100% for a stay at a short-term rental. A new study from Bankrate identified 20 vacation hotspots where short-term rental prices surge during their busy season — 10 in the fall and winter and 10 in the spring and summer. The study used rental data compiled by AirDNA, a vacation rental analytics firm, to determine where rental prices hiked the most in 2024. It also focused on properties that were single-family homes with at least two bedrooms. Augusta, Georgia, experienced the highest peak season markup, with the average daily rate for short-term rentals spiking 178% in the spring, due to the Masters Tournament. A family previously told Business Insider that renting their home out for Master's week paid their mortgage for the year. Other locations that spiked in the spring and summer included water destinations, like Long Island, New York, and Lake of the Ozarks, Missouri, as well as Bozeman, Montana, which is near Yellowstone National Park. Bozeman also was among the highest markups in the winter due to its skiing. Places that saw the biggest markups in fall and winter included sport and skiing destinations such as Vail, Avon, and Steamboat Springs in Colorado, as well as Green Bay, Wisconsin, and Ann Arbor, Michigan. The biggest fall or winter markup was 125% in Oxford, Mississippi, which attracts thousands every fall to watch Ole Miss football. Alex Gailey, a data analyst at Bankrate, told BI the big swings in rental prices at these popular destinations was "eye-popping." She also noted many Americans are saying they still plan to travel this year but that they are trying to be more budget-conscious. "Flexibility is one of the best ways you can save on travel," Gailey said. For travelers who do want to visit these hotspots in the busy season, Gailey said it's best to plan ahead of time and book early. Travelers who have flexibility in their travel dates should also use it, as short-term rentals tend to be a lot cheaper during the week than on the weekends. She also said if you can avoid a busy season visit, you're likely to find better rates visiting these places in the shoulder seasons. Another option is to stay in an adjacent city that is close by but does not experience the same level of price hike. For instance, staying in Salt Lake City can be a lot more budget-friendly than Park City, where short-term rentals can cost over 103% more on average in the fall or winter season, according to Bankrate. Gailey also said taking advantage of credit card points and other travel rewards can be a good way to make travel more budget-friendly despite broader economic uncertainty. Here's the full lists of locations and the average peak season markup for short-term rentals, according to the Bankrate study. 1. Augusta, GeorgiaMaximum average daily rate: $541Minimum average daily rate: $194Peak season markup: 178% 2. Long Island, New YorkMaximum average daily rate: $785Minimum average daily rate: $362Peak season markup: 117% 3. Albany/Saratoga Springs, New YorkMaximum average daily rate: $439Minimum average daily rate: $224Peak season markup: 96% 4. Bozeman/Yellowstone National ParkMaximum average daily rate: $611Minimum average daily rate: $313Peak season markup: 95% 5. Lake of the Ozarks, MissouriMaximum average daily rate: $407Minimum average daily rate: $212Peak season markup: 92% 6. Lake Norman, North CarolinaMaximum average daily rate: $692Minimum average daily rate: $364Peak season markup: 90% 7. Norfolk/Virginia Beach, VirginiaMaximum average daily rate: $435Minimum average daily rate: $231Peak season markup: 88% 8. Idaho Falls/Rexburg, IdahoMaximum average daily rate: $377Minimum average daily rate: $201Peak season markup: 87% 9. Providence, Rhode IslandMaximum average daily rate: $388Minimum average daily rate: $211Peak season markup: 84% 10. Myrtle Beach, South CarolinaMaximum average daily rate: $349Minimum average daily rate: $195Peak season markup: 79% 1. Oxford, MississippiMaximum average daily rate: $635Minimum average daily rate: $283Peak season markup: 125% 2. Vail/Avon, ColoradoMaximum average daily rate: $946Minimum average daily rate: $424Peak season markup: 123% 3. Green Bay, WisconsinMaximum average daily rate: $457Minimum average daily rate: $215Peak season markup: 113% 4. Steamboat Springs, ColoradoMaximum average daily rate: $694Minimum average daily rate: $335Peak season markup: 107% 5. Ann Arbor, MichiganMaximum average daily rate: $414Minimum average daily rate: $201Peak season markup: 105% 6. Park City, UtahMaximum average daily rate: $888Minimum average daily rate: $436Peak season markup: 103% 7. Aspen/Snowmass, ColoradoMaximum average daily rate: $1,082Minimum average daily rate: $535Peak season markup: 102% 8. State College, PennsylvaniaMaximum average daily rate: $642Minimum average daily rate: $315Peak season markup: 98% 9. Bozeman/Yellowstone National Park, MontanaMaximum average daily rate: $611Minimum average daily rate: $313Peak season markup: 95% 10. Mammoth Lakes, CaliforniaMaximum average daily rate: $554Minimum average daily rate: $303Peak season markup: 83% Read the original article on Business Insider
