This abandoned train car converted into an Airbnb generates up to $110,000 a year

In 2020, Isaac French, 27, and his family purchased a train car that had been abandoned on a neighbor’s farm in Deary, Idaho. They paid only $3,000.

Train car number 306 It was built in the 1900s and originally ran on the Washington, Idaho and Montana Railroad from 1909 to the 1950s. When the family got it, the wood was rotting, algae was growing and about 20 cats lived inside, French tells him. to CNBC Make It.

“(My father) had the faith and vision for it and I’m so glad I did it,” he says. “There is something very rewarding about taking an old structure that was built with so much love and bringing it back to life.”

The family borrowed $150,000, including $3,000 to purchase the train car and $10,000 to move the 61-foot-long structure to their 145-acre property.

“It’s just a beautiful, secluded place in nature,” French says. “We chose the highest point on our property so we could capture these epic views.”

French and his family spent the rest of the loan, $137,000, and six months renovating the structure with the goal of turning it into an Airbnb.

“I think today’s travelers are looking for experiences and they want to have a story. The richer story you can tell through a stay, through a property, the better the experience will be,” he says.

The French family didn’t list the train car on Airbnb just because they wanted to make some money, but because it was a passion project.

“We felt like this was the right thing to do. This is what excites us and we think will excite other people as well,” says French.

The renovation included converting the former passenger room into a living room and the mail room into a bedroom. “Our guests love it,” says French.

“They wake up in the morning and look right at these beautiful panoramic views of the countryside. It’s a really epic place to sleep.”

They also added a kitchenette with a gas stove and a bathroom, and renovated the floors and furniture.

Guests also have access to a mirrored sauna, a hot tub, and a fire pit on the grounds.

“The idea is to reflect the nature around us,” says French. “Because we had these beautiful pine trees and this spectacular view, we thought it would be a cool juxtaposition between new and old.”

When the French opened Airbnb bookings, it was an instant hit. Within the first week, the restored train car from 1909 It was booked for several months. Stays range from $325 to $350 per night.

“I think all of our dreams were exceeded with the reception and how much fun it was for us to do it as a family,” French says. “It was gratifying to see all that hard work and investment validated so quickly.”

In its first year, the train car had 90% occupancy and revenue of $14,179. Since then, income has risen to between $75,000 and $110,000 a year, according to documents reviewed by CNBC Make It.

In 2024, the train car generated $110,172 in Airbnb revenue and was booked for 140 nights on the platform.

It has a profit margin of around 65%, with 30-35% of total revenue going toward cleaning costs, small repairs and ongoing maintenance, property taxes, and insurance.

In addition to Airbnb, French and his family make reservations for the train car online. “We can have a better relationship with guests,” French says. “With Airbnb, it feels more like a transaction, whereas (direct booking) allows for more of a relationship that we can build.”

Despite the popularity, the French say they don’t plan to increase the per-night price anytime soon. They find it gratifying to welcome people from all over who want to experience a piece of history.

“Our best hosting experience has been the thanks that almost every guest sends us for caring for this piece of history,” French’s father, Webb, tells CNBC Make It.

With the proceeds from the rail car, French says they recently paid off the loan they took out to finance the rail car project.

Instead of paying themselves, the family is investing the money in the train car and the overall guest experience. “It’s hard to overestimate how hungry the general public is for unique, story-driven stays, and catering screenings are one of the best ways to get there,” says French.

“Even if you don’t have experience in catering or hospitality, if you’re passionate about welcoming other people, delighting them, surprising them, then you can create one of these because that’s what hospitality is all about.”

French’s best advice for those looking to emulate what he and his family have done with this rental property is to open your eyes and make connections: “There are a lot of opportunities right beneath people that they don’t even realize because they’ve always been there.” there and they’re out of the box.”

He says to “talk to your neighbor. Your neighbor may be the person to partner with if you don’t have the money or if you don’t have the experience that your neighbor might have.”

Although the 1909 train car was a fairly unique find for the family, French cautions that you never know what’s out there and what you might be drawn to creatively: “How many old buildings, old stories, and old train cars are there out there?” outside? Waiting to be discovered and loved?”

“I think that’s the key,” he says. “You have to have some love and some inspiration to participate in a project like this and give it new life.”

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