How a $347,000 Fixer-Upper Became Four Airbnb Units

Vanessa Banh, a 28-year-old former accountant turned entrepreneur, bought a four-bedroom house with a garage in Modesto, California, in 2022. The property cost $347,000 and was a cash or hard-money loan-only sale before she refinanced into a conventional loan within a month. Her original goal was to own an asset and eventually turn it into a rental, not live in it long term.

The practical takeaway: financing, timing, and property condition shaped the project from day one. Banh said the home was old and needed updating, but not so distressed that refinancing was out of reach.

Banh and her dad handled the renovations over about a year and a half, finishing in July 2023. Renovations cost about $60,000, with the roof and a new AC system among the biggest expenses. During the work, a subcontractor pointed out that part of the house could function as a separate unit because the layout already included a door.

That adjustment turned the house into two units by adding essentials such as a small stove, sink, and double lock. One unit attracted traveling professionals and traveling nurses staying for months at a time, creating what Banh described as basically no vacancy.

The first two units averaged about $3,500 to $4,500 in revenue, according to Banh. She said cash flow was about $1,000 to $1,500 after a roughly $2,000 mortgage and about $500 in utilities and related costs. That performance helped validate the idea that the property had more earning potential.

The garage was the next target because it was unused space on the property. Banh saw demand from traveling nurses and other professionals, and her one-bedroom, one-bathroom unit was already bringing in $1,800, which helped frame the economics of adding two studios.

After building up cash and learning to wholesale and flip homes, Banh gathered three contractor bids and started the garage renovation in November 2025. The garage conversion was finished in January 2026, with a contractor bid of about $100,000 plus another $8,500 for miscellaneous costs, city fees, and architect design. She also had to account for two permits because the garage became two ADUs.

After furnishing the units, bookings began in March. The new units brought in about $1,600 to $1,800 per unit during the first few months with a new-listing discount, and Banh said they are now getting about $2,000 each.

Banh’s strategy centered on making one property work harder before moving on to another. She said she expects it will take about two years to pay off the construction debt, after which the added garage units should be fully cash-flowed. Her decision also reflects a tradeoff: she could live in one of the units, but prefers using the space to generate income.

For readers considering a similar path, the key lessons are to study layout, local rental demand, financing options, renovation costs, and permitting requirements before converting space. The upside can be meaningful, but the project depended on time, cash reserves, contractor bids, and a clear plan for occupancy.