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

In 2020, 27-year-old Isaac French and his family bought a train car that had been abandoned on a neighbor’s farm in Deary, Idaho. They only paid $3,000.

Wagon number 306 it was built in the 1900s and originally ran on the Washington Idaho & Montana Railway from 1909 to the 1950s. When the family took over, the wood was rotting, algae was growing and about 20 cats they lived inside, French tells CNBC Make It.

″[My dad] he had the faith and the vision for it and I’m so glad he did,” he says. “There’s something so rewarding about taking an old structure that was so lovingly built, and breathing life into it.”

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

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

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

“We just felt that this is the right thing to do. This is what excites us and we think it will excite others too,” says French.

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

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

They also added a kitchen with a potbelly gas stove and a bathroom, and renovated the floors and furniture.

Guests also have access to a mirrored sauna, hot tub and firepit right on the grounds.

“The idea is to reflect the natural environment,” says French. “Since we had these beautiful pines 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 immediate success. In the first week, the Restored 1909 Train Car it has been reserved for several months. Stays range from $325 to $350 a night.

“I think all of our dreams have been surpassed with the reception of this and how much fun it was for us to do as a family,” says French. “It was rewarding to see all that hard work and that investment be validated so quickly.”

In its first year, the train car had 90% occupancy and $14,179 in revenue. Since then, revenues have 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.

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

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

Despite the popularity, the French say they don’t plan to raise the price per night anytime soon. They find it fulfilling to welcome people from all over who want to experience a piece of history.

“Our best hosting experience has been the thanks that almost every other guest sends us for taking care of this piece of history,” French’s father, Webb, tells CNBC Make It.

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

Instead of paying for it themselves, the family invests the money in the train car and the overall guest experience. “It’s hard to overstate how hungry the general public is for unique, story-driven shows, and restoration screenings are one of the best ways to get there,” says French.

“Even if you don’t have a background in catering or hospitality, if you have a passion for welcoming other people, please, to surprise them, you can create one of these because this is hospitality.”

The French’s best advice for those trying to emulate what he and his family have done with this rental property is to open their eyes and make connections: “There are many opportunities right below people who don’t have I don’t even understand why they’ve always been there and they’re out of the box.”

He says to “talk with your neighbor. Your neighbor can be the person to associate with if you don’t have money or if you don’t have the experience that your neighbor could”.

Although the 1909 Train Wagon was quite a unique find for the family, the French advise that you never know what’s out there and what you might be drawn to by creativity: “So many old buildings and old stories and old train cars are just sitting outside waiting to be discovered and loved?

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

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

In addition, sign up for the CNBC Make It newsletter to get tips and tricks for success at work, with money and in life.