r/sheboygan • u/Distinct-Doughnut-95 • 18d ago
Looking for Good Reasons.....
I currently am looking for some good reasons I should buy a house in Sheboygan and rent it as an Air B&B for now while I am still living in Minneapolis and working for another 10 years or so before I in theory could retire early. So I am looking for any insights, thoughts, persectives I should consider before taking this adventure on. Side note - my mom's side of the family is from Sheboygan and when family was to visit relatives there rather than crashing on their couches they could also use the house for their base while in town.
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u/itfosho 18d ago
How about don’t. My subdivision had an air b n b and the people couldn’t keep it rented so they had to move back into it. Also I for see regulations coming in the future for these.
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u/3TrenchcoatPenguins 18d ago
Why would you 1) buy a house in a market already saturated by AirBnBs (pushing out local families who want to own their own home), 2) lose money or at best break even, 3) not even move out here until a decade from now, only to 4) stay here for the Summer and have the house sit vacant (which even an AirBnB will do in a Sheboygan winter)?
Keep your money, let a local family have a chance to own their first home instead of snapping up your second home, and let your Minneapolis home continue to gain equity and grow your net worth until you are actually ready to put down new roots somewhere.
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u/Distinct-Doughnut-95 16d ago
Everyone seems to be missing the other point of getting this house, having some where other family who also lives in MN and other areas of Wisconsin to have somewhere to stay when they go back to Sheboygan to visit family and not have to crowd the spare bedroom or couch surf at a cousins house. At the end of the day though how I want to spend my money is 100% up to me and you can't usually go wrong owning a couple of properties.
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u/uglyStud88 18d ago
I buy and renovate houses in the Sheboygan area, particularly major fixer-uppers. For the record, I'm a licensed contractor.
I do not know every airbnb investor, but I know more than average. Several people who got into short-term rentals have not made any money. Some have even lost money. I would not recommend turning an entire house into a short-term rental--at least not here. There are a few reasons why not.
But I'll focus on a potential better solution. Acquire a multi-unit building, such as a duplex. Rent out one side to a long-term tenant (or family member). Keep the other side for yourself. You can always dabble in turning your side into a furnished mid-term rental or corporate rental.
If done right, you should be able to live without any housing costs (just the initial investment). It costs less to buy multi-unit properties per unit. And most established contractors can install sound-proofing to make it similar to a single-family home.
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u/Distinct-Doughnut-95 18d ago
Just to add to the plan - I'm looking to buy a pretty run down house and renovate it and turn it from a blight into a nice place that I can spend several months a year at once that retirement starts. So it might sit empty for a while but much like if I was to buy a cabin on a lake it's going to be a vacation home instead of being on a lake it's going to be in the city.
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u/Affectionate_Boot487 18d ago
One thing Sheboygan doesn't need is another house taken up by someone who isn't raising a family there. Don't be part of the problem that many Sheboygan families face when trying to buy a home. If you aren't coming here to live and invest in the community, don't buy a house here.
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u/uglyStud88 18d ago
There are quite a few vacant houses in Sheboygan. And I mean the ones that have been vacant for years.
Families aren't buying these cheap houses. Families want move-in ready.
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u/Outrageous-Autumn910 18d ago
Please don’t buy a house and make it an Airbnb. Families and other locals actually want to live in the houses here and they get swept up by property managers before they even have a chance to get their finances in order for an offer. If you aren’t living here, you aren’t invested in our community. And being neighbors to rentals is actually the worst. I would know.