This abandoned train car turned Airbnb pays $110,000 a year

In 2020, 27-year-old Isaac French and his family bought an abandoned railroad car on a neighbor’s farm in Deary, Idaho. They paid just $3,000.

306 train car It was built in 1900 and originally ran on the Washington Idaho & Montana Railway from 1909 to 1950. When the family took over, the wood was rotting, algae was growing and about 20 cats were living inside, French tells CNBC Make It.

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

The family took out a $150,000 loan, including $3,000 to buy the railroad car and $10,000 to move the 61-foot-long structure onto their 145-acre property.

“It’s just a beautiful and secluded place in nature,” says the Frenchman. “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 travelers today are looking for experiences and you want to have a story. The richer the story you can tell through a stay, through a property, the better the experience,” he says.

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

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

The renovation turned the old passenger room into a living room and the mail room into a bedroom. “Our guests absolutely love it,” says French.

“They wake up in the morning and look straight out at these beautiful countryside views. It’s an epic place to sleep.”

They also added a kitchen, gas stove and bathroom, and updated the floors and furniture.

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

“The idea is to reflect the surrounding nature,” says the Frenchman. “With these beautiful pine trees and this spectacular view, we thought it would be a nice juxtaposition of new and old.”

When the French opened reservations on Airbnb, it was an instant success. In the first week, A restored 1909 train car 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 fun it was for us to do it as a family,” says French. “It was rewarding to see that hard work and investment pay off so quickly.”

In the first year, the train car had 90% occupancy and $14,179 in revenue. Since then, revenue has increased 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 revenue on Airbnb and was booked for 140 nights on the platform.

It has a profit margin of about 65%, with 30% to 35% of revenue going towards cleaning costs, ongoing maintenance and minor repairs, property taxes and insurance.

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

Despite its popularity, the French say they have no plans to raise the nightly price any time soon. They find it gratifying to welcome people from all over who want to experience a piece of history.

“Our best experience in hospitality has been the gratitude that almost every other guest sends us for preserving this piece of history,” French’s father, Webb, told CNBC Make It.

With the revenue from the railcar, the French say they have recently paid off the loan they took out to finance the railcar project.

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

“Even if you have no training in restoration or hospitality, if you have the desire to host, enjoy, surprise other people, then you can create one of these, because that is hospitality.”

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

“It says to talk to your neighbor. Your neighbor can be your partner if you don’t have the money or the experience your neighbor might have.”

While the 1909 Train Car was a great find for the family, French advises that you never know what’s out there and what you might be creatively drawn to: “How many old buildings and old stories and old train cars are sitting there waiting to be discovered and loved?”

“I think that’s the key,” he says. “You have to have a little love and a little inspiration to get involved in a project like this and breathe new life into it.”

Want to earn extra money outside of your day job? Sign up for CNBC’s online course How to earn passive income online Learn about common passive income, tips for getting started, and real-life success stories.

In addition, sign up for CNBC Make It’s newsletter for tips and tricks to succeed at work, with money and in life.