A comfortable retirement plan was in place, but one idea risked changing everything.
Kathy, 65, called into “The Ramsey Show” with a question about whether adding an Airbnb to their finances made sense.
Kathy and her 68-year-old husband live near Topsail Island, North Carolina, where she said visitors flock most of the year. The couple is debt-free, owns a paid-off home and already has a paid-off rental property.
Still, Kathy wondered whether a roughly $280,000 Airbnb could add more income, possibly by borrowing against their home.
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Everything Paid Off, So Why Risk It?
Their home is worth just under $500,000 and fully paid off. They bring in about $100,000 a year from Social Security, a pension and other income, and own a separate rental property generating $1,700 a month.
That property is also paid for, and Kathy said they have had only one bad tenant in about 20 years. They also hold about $500,000 in conservatively invested savings.
Ramsey ruled out borrowing against their home. If they wanted to pursue an Airbnb, he advised paying cash instead. “You have a very good life,” he said. “Don’t go screw that up with an Airbnb.”
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The Reality Behind The Extra Income
The bigger issue, Ramsey said, was not the price but what came after purchase.
“When you have an Airbnb, you have a new tenant every four days,” he said.
He warned that frequent guest turnover can bring damage, complaints from neighbors and even calls to police. While an Airbnb can earn more than a traditional rental, Ramsey told Kathy that extra income comes with more work.
He said it requires ongoing oversight — including cleaning, maintenance and handling guest issues — pushing back on the idea that Airbnb income works like simple rent collection.
“This is not like ‘I’m going to just go to the mailbox and collect a bunch of checks,'” Ramsey said. “It’s a lot of work.”
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More Listings, Fewer Wins
Co-host Ken Coleman widened the concern beyond Kathy’s property. He cited revenue data showing declines across several markets, including 47% in Sevierville, Tennessee, 43% in San Antonio, 39% in Nashville and 38% in Denver.
Coleman said many markets now have more supply than demand, leaving investors at risk of getting caught quickly. Ramsey said short-term rentals are also facing political and zoning pushback in some cities.
“The bottom line is, the Airbnb market is soft and there’s a lot more work involved and a lot more risk involved than people ascribe to it,” Ramsey said.
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