29 Jun Would you go for this investment (rent2rent)?
For contest, I am 20 and I just moved to a new country for a job with a decent salary but I don't really like. Always wanted to get into real estate.
In the city were I live, rents are really low and airbnb prices are really high, so I was thinking about a little rent2rent.
I found an apartment (2 bedrooms with a double bed each, living room, kitchen, 1.5 toilets) that rents for 630€/month plus appliances, so to get into it it would be around 2000€ (first month rent, deposit, agency fee), and even though it is fully furnished in a pretty decent condition, it could use some new furniture.
The apartment is 200m from the main square, the minumum price on airbnb for a 2-persons bedroom in the neighbourhood I could find is 37€/night, with most of the rooms placed at around 50-60, and the high-end ones at 80-100ish.
This leads me to belive that with a little doing up of the house (like 1000 or so, I can paint it myself), I could easily rent each of the rooms for 50€/night, and I could expect at the veery least to rent them out half of the month (more during high season). That would be 50€*2rooms*15nights so 1500€/month income at the very least, so assuming 250€ in appliances it leaves me with 1500-630-250= 620€/month in profit.
Am I daydreaming? Cause it looks too good to be true to my inexperienced mind. Where in my assumptions did I go wrong? Btw it is not just this house, there's lots of good deals like this around here, so even if I don't get this one, what I want to know is if I'm thinking correctly about the whole thing.
The actual question is: I have currently no savings, and it would take me aroung 4-6 months to save enough, so is this deal good enough, and do you think it is worth borrowing 3000 euro for?
TL;DR: apartment rent + appliances 850/month, airbnb expected to be 50€/night for each of the two rooms. How many days per month should I expect it to rent out, and would it be worth borrowing money to get this apartment asap?