I bought 8 abandoned apartments for $50K — and turned them into $220K/year short-term rentals

In recent years, the short-term rental market has become a lucrative venture for many, as homeowners and investors alike seek to transform neglected properties into profitable tourism assets. Sarah McDaniel’s journey from investor to successful property manager is a testament to the potential that lies in reviving forgotten spaces. In 2024, Sarah embarked on an ambitious project: purchasing eight abandoned apartments for $50,000, with the vision of renovating them into charming short-term rental properties. The journey was fraught with challenges, doubts, and unexpected expenses, but the outcome was extraordinary, ultimately generating $220,000 in revenue over the course of the year.

The Initial Investment: A Leap of Faith

The decision to invest in these eight dilapidated properties was no small feat. Located in a neighborhood that had seen better days, the buildings bore the scars of neglect. With caving ceilings and shattered windows, the physical state of the apartments could easily deter potential buyers. Yet, Sarah was driven by a vision: to transform these historic villas into inviting spaces that would provide unique experiences for her guests. “I felt like I was being called to do this,” she shares, reflecting on her initial hesitations. “The numbers didn’t seem to work out, but I knew there was something special about these buildings.”

At first glance, the property appeared to be a burden. It seemed as though the previous residents had left in a hurry, leaving behind a landscape of deterioration. Armed with determination and a desire for revival, Sarah looked beyond the visible flaws. She envisioned a project that would breathe new life into these abandoned apartments, turning them into an investment not just for herself, but for the community as well.

Despite the daunting prospect of renovation, Sarah’s initial budget of $500,000 to $600,000 quickly became a conservative estimate. As the project unfolded, challenges began to mount. The total renovation cost spiked to $730,000, with an all-in total of $780,000. This serves as a crucial reminder for prospective property investors: contingency plans are essential. Without an adequate buffer, unexpected expenses can derail financial plans and wreak havoc on timelines.

Restoration: A Job Worth Doing

Over the course of 18 months, the process of restoring these eight historic villas was nothing short of an ambitious odyssey. Each unit exemplified individuality, reflecting Sarah’s commitment to providing a one-of-a-kind experience for guests. Two of the villas are approximately 750 square feet, while the others are smaller, at around 500 square feet. This diverse range caters to couples, families, and solo travelers alike, each seeking a unique escape. The eclectic design themes and thoughtful amenities make each stay memorable and even Instagram-worthy, traits that have become increasingly important in today’s travel landscape.

Renovating with a mindset focused on hospitality led Sarah to collaborate with various artisans and local contractors. Each villa was crafted with a careful balance of endurance and aesthetics, emphasizing both comfort and style. “Every choice we made had to reflect the history of these structures while integrating modern conveniences,” says Sarah, who ensured that each space not only showcased its unique charm but also accommodated the needs of contemporary guests.

One notable challenge was dealing with the structural issues that came with age. From patching up dilapidated ceilings to installing new windows, the process required extensive expertise. Each renovation phase was marked by moments of frustration; however, the excitement of transforming these spaces kept the project moving forward. “It was tough at times,” recalls Sarah. “But every time I saw a completed room, it fueled my determination.”

Turning a Profit: The Fruits of Labor

Fast forward to 2024, and Sarah’s venture yielded remarkable results. Earning $220,000 in revenue turned Sarah’s once-daunting project into a resounding success. The popularity of the short-term rental market, especially in a post-pandemic world, has surged as travelers look for distinctive accommodation options away from traditional hotel settings. This shift allows smaller property owners like Sarah to tap into a niche that prioritizes unique experiences over generic lodging, providing a significant advantage in developing a brand that resonates with guests.

Moreover, the rise in platforms such as Airbnb and Vrbo has made it easier for individual property owners to market their rental properties effectively. The effective use of social media and engaging online listings became paramount to Sarah’s strategy. Providing stunning, high-resolution photos and captivating descriptions helped in drawing bookings, making it crucial for prospective hosts to invest time and effort into the presentation of their properties.

Furthermore, Sarah’s focus on creating an immersive experience extended beyond just the physical properties. She emphasizes the importance of incorporating local culture and flavor into the guest experience. “We provide recommendations for local hiking trails, nearby eateries, and other hidden gems in the city,” she states. Such details not only enrich her guests’ stays but also foster a connection between visitors and the community.

As more travelers prioritize personalized experiences, the emphasis on hospitality becomes paramount. Sarah’s commitment to her guests translates into glowing reviews and repeat visits, creating a sustainable business model. Each positive review serves as a vital sign of progress, further encouraging Sarah to continue refining her approach to property management.

The journey from purchasing derelict apartments to establishing a thriving rental business embodies both the challenges and rewards that come with real estate investment. Through determination, creativity, and attention to detail, Sarah has not only transformed properties but also revitalized a community and created a unique hospitality brand. Her story inspires those considering delving into the world of property investment, offering insight into the potential that lies in hard work and vision.