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News Every Day |

I bought a $1,200 shed on Craigslist and transformed it into a backyard cottage. My side hustle nets me about $600 extra a week.

Completed shed
The completed shed in Salas' backyard.
  • Daniel Salas paid $1,200 for a rundown shed on Craigslist and transformed it into a cute cottage.
  • Salas spent around $45,000 making it an oasis in his San Antonio backyard to rent out to tourists. 
  • Now it earns the 45-year-old consultant about $75 a night, or $500 to $600 per week, in revenue. 

This as-told-to essay is based on a conversation with San Antonio, Texas resident Daniel Salas about his experience purchasing a shed from Craigslist. Salas, a 45-year-old consultant, moved the structure to his backyard and transformed it into a short-term-rental property that rents on Airbnb, Vrbo, and Booking.com for about $75 a night. This interview has been edited for length and clarity.

 

 

The first time I got the idea for the shed was when my wife and I stayed at tiny home Airbnb in Fredericksburg, Texas. During the pandemic, I decided to go for it. I saved about $25,000 to start the project.
Yellow shed
The shed as Salas purchased it in 2021.
In 2021, I ran across this Craigslist ad for a $2,500 shed. It was fairly new, maybe less than five years old. The owner told me there was one catch: "You can't take it apart, but you can have it today for half the price."
Yellow shed being transported
The shed being transported in 2021.
My wife didn't even know that I made the purchase. I started taking down my fence, and she said "Oh my god, what are you doing?"
Gravel pit
The plot of land Salas earmarked for the tiny home. He had to take down his fence to get the shed into the yard.
I hired the contractor who had done a total renovation on my kitchen and dining room the year before. Together we did the blueprints and the planning.
Yellow shed
The shed on Salas' property, pre-renovation.

I got several bids before I decided I wanted to use my contractor. He wasn't even the cheapest, but I got him because I knew his work.

All in all, I probably blew between $40,000 to $45,000. That's including everything, even putting the fence back up.
Shed being painted blue
One of the improvements Salas made was painting the shed blue.
I wanted the house to be just a little bit bigger. So we had to blow out the back wall and add a bedroom. That took about an extra four to six weeks from the original timeline.
Blue shed with extra room
The bedroom being built. Without the addition, the shed would have been a tiny studio with no separate sleeping space.
Building that tiny bedroom was just a lot more work. I had to hire an electrician to reroute the wires, adjust the pitch on the roof, and remove the gutters. It was a little painful, but it was the right thing to do.
Shed being painted blue
The extra bedroom when it was completed.
I didn't expect the materials to be so expensive. The price of insulation has gone up two to three times since 2020 — same thing with lumber.
Insulation on the walls
Insulation lines the inside of the shed during the renovation.
We completed the project in November 2022.
Shed during construction
The shed during the renovation.
I've listed it through a management company, Evolve, which takes 10% of all bookings. Right now, the minimum that they have it listed for online is between $75 and $90 a night during the week. Weekends would be $90 to $130.
Completed shed
The finished house is listed on Airbnb, Vrbo, and Booking.com via short-term-rental property-management company Evolve.

Source: Evolve

We welcomed our first guests on New Year's Eve. Right now, I'm averaging about $500 to $600 per week in booking revenue.
A backyard filled with gas station and highway signs
The backyard outside the tiny home.
There's a little patio, a barbecue pit with an outdoor sink, a TV, and string lights. It's a great place for entertainment.
A red umbrella and table with four chairs outside the tiny home
The outdoor entertaining area for people who stay in the tiny home.
Our very first visitor was a couple from Houston. Now, I've had people from Los Angeles, Seattle, Florida, Rhode Island, and Canada.
A yellow bedroom and blue and white bedspread
Salas says building out the bigger bedroom was the right choice.
My favorite part of the house is the restroom. We went all out! It's a little luxury spot. The vanity mirror is anti-fog and has LED lighting.
White sink bathroom and tile shower
The bathroom is Salas' favorite room.
My advice to others is don't skimp on furniture. Get quality furniture, because people are going to be using it frequently.
A pale blue wall and a black leather sofa in the entryway
The entryway and seating area in the shed.
The biggest surprise to me so far has been the amount of attention that we're getting — and people's reactions. They say, "Wow, it's a lot bigger than we thought."
A blue refrigerator and microwave
Guests have access to a kitchen.
We wanted to provide as much privacy as possible. So we added an extra entrance on the side of my house. There's a private gate and a path. Many times, I don't even interact with guests or see guests that are staying.
A wooden gate to the left of a blue house
The private entrance, set in the wooden fence with the door open, is off to the side of Salas' home.
I love having the shed as a side hustle. We get to meet new people from all over. And the extra revenue has allowed me to pad my savings and take more vacations, like to New Orleans and around the Texas Hill Country.
A quaint blue shed with a bright orange door with green tarp hanging overhead
Salas is proud of his shed-turned-getaway.
Read the original article on Business Insider
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