Do celeb homes make profitable Airbnbs?

Michael Jordan fans can now be like Mike by renting the house where he used to live: The Chicago-area mansion, listed on Airbnb, runs just over $100,000 for a weeklong stay.

The 7.39-acre estate, now branded Champions Point, boasts nine bedrooms (seven currently with beds), 15 full bathrooms, five half baths, and can accommodate up to 12. Guests can kick back like His Airness and sink three-pointers on the regulation-size basketball court, play golf on a putting green, fish in a private pond, swim in the infinity pool, or head indoors for the movie theater, pool tables, cigar lounge, and more amenities worthy of an NBA All-Star.

Jordan built the house over several years and completed it in 1994 while he was playing for the Chicago Bulls. He listed it in 2012 for $29 million. It then sat, infamously, on the market for 12 years until it was purchased in December for $9.5 million by John Cooper, a real estate investor at Han Capital in Illinois.

So what inspired Cooper to purchase this iconic property? “I have larger plans than having this be a short-term rental; however, they require zoning relief, which could take months or even years, if ever,” he told The Playbook. “So in the meantime, I’m considering various options that are allowed within the current zoning district to produce revenue.”

Highland Park, where Champions Point is located, permits only 45 days of short-term rentals annually, which amounts to six weeklong stays per year. Cooper, who listed the property in late June, says he’s already received several booking requests. Does that make this a winning investment, or is it too early in the game to make the call?

Are celeb Airbnbs a smart investment?

Michael Jordan’s former home is hardly the only short-term rental with celebrity ties. Currently, you can book stays at properties formerly owned by Frank Sinatra, Bing Crosby, and Sonny and Cher. Some stars even rent out homes they currently own, such as Leonardo DiCaprio (in Palm Springs, CA) and Sting (in Italy). Even Gwyneth Paltrow and Ashton Kutcher and Mila Kunis have rented out their guesthouses for limited periods.

But do these rentals rake in profits? It can go either way.

“The ‘fame premium’ is a marketing tool, not a sound basis for an investment, because the novelty fades but the carrying costs don’t,” says Sabine Ghali, managing director at Buttonwood Property Management in California. What really matters are the fundamentals of the property itself, such as its location, rates on comparable rentals, and broad appeal beyond just a niche group of fans.

Sometimes, a celebrity’s customizations, from recording studios to basketball courts, can be a liability. “These features can shrink the pool of interested tenants for a short-term rental, making the property harder, not easier, to monetize consistently,” Ghali adds. These signature features can also make a house harder to sell, which explains why Jordan’s home lingered on the market for over a decade.

Furthermore, “The fame of the previous owner can bring higher security concerns and inflated guest expectations, which can lead to issues with upkeep and guest satisfaction,” points out real estate broker Taylor Lucy of Paramus, NJ. “As an investment, these properties require careful management. The hype surrounding a celebrity’s name can generate buzz, but it’s crucial to ensure the home itself offers real value beyond the name.”

So, time will tell whether enough fans will fork over $100,000+ to walk in Jordan’s hallowed halls. The rest of us will have to make do with a virtual tour by viewing a few pics below.