This property is sold and closed ~ see our current properties for sale
It’s quite rare to find an operating turnkey Airbnb for sale in the Gulch neighborhood of Nashville, TN. 1039 Archer Street is a 4 bedroom, 3.5 bath, 2 car attached city home with 2,130 square feet and a panoramic roof top terrace. The floor plan of the home was cleverly modified after purchase to create a main floor bunk room to help maximize occupancy. The home has been furnished with $42,800 of furniture, décor and essentials and is professionally managed by Airbnb super host manager Playlist Properties. Zoned RM20, this home qualifies for a non-owner occupant short term rental (STR) permit. This opportunity is priced $1,050,000 and showings by appointment start on January 7, 2020.
Airbnb Income, Occupancy and CAP Rate
1039 Archer Street was professionally furnished by a local designer who focused on highly durable and “Instagramable” furnishings. The home began operating as a full time Airbnb in March 2018. In the first 11 months of operation in 2019, the property grossed $100,418.00 (month by month rent roll available upon request). At the time of publishing, 1039 Archer Street has $34,772 of future bookings. The current occupancy rate is 61% of calendar days and has increased 7.7% over the past 3 months. Including professional management, current operating costs are running in the 20% range making this investment opportunity a 8.13% CAP rate.
Future Short Term Rental Income in the Gulch
The income of this home is expected to increase 9-12% during the second full year of operation. As the home continues to earn additional 5 star ratings for overall experience, cleanliness, location and accuracy the listing will continue to climb up the Airbnb page rankings. As the listing climbs, so does the number of bookings and potential income for the home. Generally, we expect the short term rental income for all rentals in the Gulch area of Nashville to increase 6.75% during the 2019 calendar year. This increase is expected due to a number of factors: HPR homes losing STR permits, increased tourism, continued economic growth, few new construction opportunities and increased walkability.