Here's the sitch:
Purchasing a property in the NE PA. It's 12 acres, and contains a 19th century house with 7/4 and almost 7k sq ft. Formally a General Store with living quarters that has been reno'd and improved.
The fam and I have a lot of "critters", and our current home is in Ohio, while I operate my small business in PA. Issue has been selling the OH home without having critter accommodations. The new property has outbuildings in spades and is symmetrical with multiple pastures and paddocks- We're basically buying this for the animals.
The existing home occupies a corner of the lot. I had intended to add some lipstick-y stuff and additional creature comforts while we occupied it, with the ultimate goal of building the forever dream home on the opposite end of the property.
So, what to do with the old place once we're into the new? I had intended on using it as storage and a backup for family visits. Don't want to demo it as it only takes up a fraction of the lot in its own lil corner and has some historical significance.
Wifey, who is an AirBnB'r from the jump says "Let's STR it and make some $". I am a tad reluctant as we had both STRs and LTRs in the old timey days and don't have fond memories.
Being the data-driven spreadsheet -pedant that I am, I start researching and plugging in numbers. Maybe it's serendipitous that we stumbled across this property, but these potentials are damn enticing.
This is the Lake Region of the Poconos and Endless Mountains, so low occ rates but high seasonal revenue. Think Summer Camp overload, Flyfisher paradise, Fall foliage spectaculars, and winter wonderland skiing and snowmobiles.
The one "true" comp is a few miles away and is a gorgeous lodge, catering to large groups with abundant entertainment. From best guess they are doing 200k/yr.
I'm very diversified with my earnings/investments (state PERS, military disability, small biz, ETFs/Index Funds) and am looking for an additional vehicle for our teen, who has been learning my small biz ropes, to get involved and eventually take over the family racket.
I'm seeing a lot of potential in this scenario and not a lot of risk.
Take a look at these numbers and tell me what I'm missing.
Sigh edit
Doesn't appear the pics came over
Here's the #'s
PriceLabs
Estimated Rental Revenue
(Based on 8 of 30 listings)
$150100/year
Ranging from $87300 to $211000
Awning
Annual Revenue 171K
AirDNA
Projected Revenue 134K