This abandoned train car turned Airbnb brings in up to $110,000 a year

In 2020, Isaac French, 27, and his family bought a train car that was abandoned on a neighbor's farm in Derry, Idaho. They only paid $3000.

Train No. 306 It was built in the 1900s and originally operated on the Washington Idaho and Montana Railroad from 1909 until the 1950s. When the family got the house, the wood was rotting, moss was growing, and there were about 20 cats living inside, French told CNBC Make It.

“(My father) had the belief and vision for it and I'm so glad he did it. “There's something so rewarding about taking an old structure that was so lovingly built, and bringing it back to life.”

The family took out a $150,000 loan, including $3,000 to purchase the train car and $10,000 to move the 61-foot-tall 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 amazing views.”

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

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

The French family listed the train car on Airbnb not 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,” French says. “This is what excites us and we think it will excite others as well.”

The renovation included converting the old passenger room into a sitting area and the mail room into a bedroom. “Our guests absolutely love it,” French says.

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

They also added a small kitchen with a gas stove and a bathroom, and renovated the flooring and furniture.

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

“The idea is to reflect the surrounding nature,” French says. “Since we have these beautiful pine trees and this amazing view, we thought it would be a great juxtaposition of new and old.”

When the French opened bookings on Airbnb, they were an instant hit. During the first week, Restored 1909 train car It has been booked for several months. Accommodation rates range from $325 to $350 per night.

“I think all of our wildest dreams were surpassed by her reception and how much fun it was for us to do it as a family,” French says. “It has been rewarding to see all this hard work and this investment validated so quickly.”

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

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

Its profit margin is about 65%, with 30 to 35% of gross revenue going to cleaning and maintenance costs, ongoing small repairs, property taxes and insurance.

In addition to Airbnb, French and his family book the train car connected. “We can build a greater relationship with the 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, French says they don't plan to raise the per-night rate anytime soon. They find it fun to host people from all over the world who want to experience a piece of history.

“Our best hosting experience has been the thanks that almost every guest sends us for sponsoring this part of history,” French's father, Webb, told CNBC Make It.

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

Instead of paying themselves, the family invests the money into the train car and the overall guest experience. “It's hard to overstate how thirsty the general public is for one-of-a-kind accommodations, and restoration expectations are one of the best ways to get here,” says French.

“Even if you don't have a background in restoration or hospitality, if you have a passion for hosting people, making them happy, and surprising them, 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 did with this rental property is to open your eyes and make connections: “There are a lot of opportunities out there under people who don't even realize it because they've always been there and stepped out of the box.”

“Talk to your neighbor,” he says. “Your neighbor might be someone you can partner with if you don't have any money or if you don't have the experience that your neighbor does.”

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

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

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