When Bailey Hall bought a house near Seattle, sight unseen, the product manager was surprised upon visiting the property to find a small barn on its five acres. A huge fan of HGTV, she’d always dreamed of tackling her own home makeover, so despite having no background in renovation, she rolled up her sleeves and got to work. In April, about a year later, Hall of Moss made its debut on Airbnb as a rental alongside the primary house, doubling Bailey’s income streams from one property. Here’s how she pulled it off and her advice for others who dare to dabble in DIY.
How did you end up turning a tiny barn into an Airbnb? “In 2021, I purchased a property for $410K that was converted and ready to go as an Airbnb rental. This was during the height of Covid, so housing demand was sky-high, and the market was very competitive. I took a huge leap of faith and put an offer on the property before seeing it. When I closed on the property and visited it, I was pleasantly surprised, especially when I found that there was also a small, dilapidated barn on the grounds. It was falling apart, but I instantly saw an opportunity to transform it into a second Airbnb rental. I grew up watching HGTV and had always wanted to do a home renovation project on my own. This was an opportunity to pursue my passion, while also generating additional income and expanding my Airbnb portfolio.”
What challenges did you face? “My first challenge was figuring out how I would fund the renovation project. I had my own savings to help, but I still needed some additional funding to cover professional help and materials. I decided to take out a home equity line of credit (HELOC) on the property through Figure to help pay for the renovation project. A HELOC was the perfect choice for me because it was easy to access funds for the project, and it didn’t disrupt the low interest rate on my mortgage. It’s also worth noting that when I took out the HELOC about a year ago, the property’s value had skyrocketed to over $700K. This was great because I was able to access even more cash than I needed.”
What did you do to turn this little barn into a livable house? “Pulling off the renovation itself was quite the undertaking. The foundation was crumbling, and the deck started to fall off as well, so I used a large chunk of the funds to hire professional contractors. They handled a lot of the structural rebuilding, including the roof, foundation, electrical, and plumbing work. While contractors handled the structural rebuilding, I wanted to do a lot of the renovations on my own. I invested a lot of my time—lots of weekends and late nights and elbow grease to complete this dream project.”
Which renovations did you tackle on your own? “Among the many projects I handled myself: I did the demo wall construction, insulation, tiling, built-ins, flooring, and the fireplace on my own. I also moved windows so that I could install a library wall, which was the focal point for me, as I am an avid reader and wanted to build the perfect reading nook for fellow book lovers.”
Let’s Make a Game Plan
Boost your investment game with expert real estate insights. We'll keep you up to date on everything you need to know to be the smartest real estate investor you can be.
Did you preserve any barn-like elements within the house? “The original property owner built the barn back in the 1970s. It was inspired by the Scandinavian architecture that we see a lot of in the Seattle area, as there is a sizable Norwegian and Swedish community. I wanted to preserve as much of the original A-frame design and sloped roof as I could when turning it into the cabin, and I was even able to reuse a lot of the original wood, some of which was milled on the property years ago.”
How has it done as a short-term rental? “The cabin went live on Airbnb in April. We haven’t even hit our busy season yet, but we’re getting more bookings than expected during Seattle’s slower/wetter months, and it’s been profitable at about $2,000 a month, a 3x margin over my HELOC payments. I think this is due to the experience the property offers. It’s about an hour outside Seattle and is close to a beautiful and well-known national park, so this can be a little weekend getaway for couples or families. I also built a firepit, so guests can have a relaxing evening with friends or use it for a s’mores night by the fire with kids.”
What advice do you have for others who might like to try renovating or owning a short-term rental? “Pull more from your HELOC than you think you’ll need. My budget was $60K, and I ended up going slightly over, but that wasn’t an issue because I was totally covered with the funds from my HELOC. It was a lot of hard work, and it took me about a year, but I’m very proud of what I accomplished. It has also inspired me to take on more home renovation projects.”
Why do you think barn conversions and barndominiums are so hot right now? “I love barndominiums, too! Although I don’t consider this cabin a barndominium because of the size and the slope of the roof. Hall of Moss is under 600 square feet, and having an accurate listing is something that guests can rate against a listing on Airbnb. I think the barndominium style and A-frame are so popular because they are unique stays, offering a different escape than city zoning laws restrict. It’s also popular for builders because you don’t have as many legal restrictions with this home-building style. In general, I think we’re seeing a huge movement of people trying to curate homes that speak to their passions and their idealized version of self. When our homes closely reflect that, we feel more joy compared to sterilized high-rises or builder-grade homes. I believe that’s why my cabin has been so popular in the first few weeks—it’s a true immersion in a romanticized style of living that breaks the mundane cycle we may have in our day-to-day lives.”
See more photos of Bailey’s renovation below.
