Having spoken with a management company, they predict we could bring in 225/night with an average occupancy closer to 60%. To be safe, we’re going to use 50% occupancy and an average nightly stay of 175/night. With an average nightly rate of $175 and an estimated occupancy rate of 50%, each unit is expected to be booked for approximately 182 nights per year (50% of 365 days).
Cleaning costs a year are 6000
Annual Net Revenue with Evolve Management:
$215 at 50% occupancy = $20k per year
Year 1 fixes – 30-40k
– Level house – negotiate upon sale
– Redo Floors – 5k
– Paint interior walls – 5k
– Paint exterior with my painter – 4k
– Create outdoor shower -2k
– Clean up the trees – 1k
– redo the front porch – 1300
– Do the foundation work – 2000
– Add porch with hot-tub on side near kitchen – 5k
– Landscaping upon entry – 2k
Year 2 – Cabin Rental Revenue Projection Net
List as a premium tiny-house with extras, including a farm tour. Average nightly rate: $130
Occupancy rate: 50%
Cleaning costs a year are 5500
Annual Net Revenue: $10,300 per year
In rural North Carolina, treehouse rentals have become increasingly popular. Here’s what you might expect if we put one in on year one.
Price to build – 60k
Cleaning costs a year are 5500
Annual Net Income: $145/night 50% occupancy = $12,800/year
Year 1 Price to build – 21k
– Tent – 1400 (here)
– Bed, linens, side tables, linens. (1200)
Platform for the tent (300 sq/ft) – 6500 for materials. and 3.5k for build. 10k.
– Wood fired hot-tub – 6k
– Landscaping the area to remove sticks, etc – 2k
Year 2 – Cabin Rental Revenue Projection Net
List as a budget canvas tent but might upgrade to a “hideaway” in the future (which would bring in about 10k more a year). Occupancy rate: 50%
Cleaning costs per year are about 4,500.
Annual Net Revenue: $7,800 per year
To secure funding for the $800,000 purchase I have created a plan for the income generation from short term rentals.
and development of Indian Creek Nature Retreat, we have created a conservative financial forecast spanning ten years. This plan demonstrates how a mix of short-term investment and long-term rental income from Airbnb-style accommodations can generate reliable returns.
Initial Investment Needs (Year 1)
Property Purchase: $800,000
Estimated Repairs to Main House and cabin: $60,000
Treehouse Construction: $70,000
Glamping Spot Creation: $21,000
The first year does not generate income as we focus on acquisition, small repairs, listing, and treehouse development. However, this positions the retreat for strong returns beginning in Year 2.
Revenue Streams (Starting Year 2)
Main Farmhouse Unit: $20,000/year
Cabin Rental: $10,000/year
Treehouse Rental: $12,000/year
Total Annual Air BnB Revenue: ~ $50,000/year
| Accommodation | Gross Revenue | Cleaning Fees | Management Fees | Airbnb Fees | Insurance | Utilities | Total Expenses | Net Revenue |
| Main Farmhouse | 39237.5 | 5475.0 | 5885.625 | 1177.125 | 1000 | 1200 | 14737.75 | 24499.75 |
| Cabin | 23725.0 | 5475.0 | 3558.75 | 711.75 | 1000 | 1200 | 11945.5 | 11779.5 |
| Treehouse | 27375.0 | 5475.0 | 4106.25 | 821.25 | 1000 | 1200 | 12602.5 | 14772.5 |
| Glamping Spot | 18250.0 | 5475.0 | 2737.5 | 547.5 | 1000 | 1200 | 10960.0 | 7290.0 |
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