Purchase Price: $800,000
➤ This is the cost to acquire the farm.
Repairs in Year 1: $50,000
➤ Estimated for upgrades to the cabin, barn, and infrastructure.
Treehouse Construction (Year 2): $50,000
➤ This is a one-time cost to build the treehouse for Airbnb in year two.
| Unit | Rate | Assumed Occupancy | Annual Revenue |
|---|---|---|---|
| Main House | ~$175/night | ~50% | $31,000 |
| Cabin | ~$150/night | ~50% | $27,000 |
| Treehouse | ~$200+/night | ~60% | $43,000 (starts in Year 2) |
These were based on your earlier projections, refined by occupancy modeling and comparable rural North Carolina Airbnb pricing.
Field Lease Income: $1,000
➤ From leasing one of the fields for corn production.
| Expense Category | Annual Estimate | Notes |
|---|---|---|
| Mowing | $5,000 | Year-round service for open fields and around buildings. |
| Electricity | $6,000 | All buildings (main, cabin, coop, etc.). |
| Taxes & Insurance: | $9,000 total | |
| • Property Tax | $2,500 | |
| • Farm Insurance | $2,500 | |
| • Airbnb Liability Cover | $4,000 | Estimate based on 3 rentable units. |
| Airbnb Fees | ~3% of revenue | Airbnb charges hosts ~3% per booking. |
Revenue:
= Sum of active Airbnb units + $1,000 field lease income
Expenses:
= Fixed operating costs + 3% of Airbnb revenue
Capital Costs:
= $50,000 in year 1 (repairs), $50,000 in year 2 (treehouse)
Net Income After Expenses:
= Revenue − Expenses
Net After Capital Costs:
= Net Income − Capital Costs
Fixed Operating Costs:
$5,000 (Mowing) + $6,000 (Electricity) + $9,000 (Taxes & Insurance) = $20,000
Airbnb Fees (3% of Airbnb Revenue):
• Year 1: 3% of $58,000 = $1,740
• Year 2–10: 3% of $101,000 = $3,030
Total Expenses:
• Year 1: $20,000 + $1,740 = $21,740
• Year 2–10: $20,000 + $3,030 = $23,030
= One-time expenses for repairs and treehouse construction
Year 1: $50,000 (Cabin & infrastructure repairs)
Year 2: $50,000 (Treehouse build)
Year 3–10: $0
= Revenue − Expenses
Year 1: $59,000 − $21,740 = $37,260
Year 2–10: $102,000 − $23,030 = $78,970
= Net Income − Capital Costs
Year 1: $37,260 − $50,000 = −$12,740
Year 2: $78,970 − $50,000 = $28,970
Year 3–10: $78,970 − $0 = $78,970
