An abandoned train car transformed into an Airbnb generates up to $110,000 annually: "Our aspirations were exceeded"

In 2020, Isaac French, 27, and his family bought a derelict train car that had been left unused on a neighbor's farm in Deary, Idaho for $3,000.

The train car number 306, constructed in the 1900s, was originally operated on the Washington Idaho & Montana Railway from 1909 to the 1950s. When the family acquired it, the wood was decaying, algae was growing, and approximately 20 cats were residing within it, as French shared with CNBC Make It.

I'm grateful that my dad had the faith and vision to revive an old structure that was so dear to him.

The family borrowed $150,000 for the purchase and relocation of a train car onto their 145-acre property, with a $3,000 down payment and $10,000 for moving costs.

""We selected the highest point on our property to capture these breathtaking views," French explains."

The family spent six months and $137,000 renovating the structure with the goal of turning it into an Airbnb.

He argues that travelers today prioritize experiences over material possessions, and that a richer story can be created through a stay at a property. This, he believes, will enhance the overall travel experience.

The French family didn't list the train car on Airbnb solely for financial gain, but because it was a labor of love.

French stated, "We felt that this was the correct course of action. It excites us and we believe it will excite others as well."

The renovation transformed the old passenger room into a sitting area and the mailroom into a bedroom, which our guests adore, according to French.

"In the morning, they gaze out at the breathtaking countryside views from their bed. This is an incredible place to rest."

The kitchenette, gas potbelly stove, and bathroom were added, and the floors and furniture were refurbished.

On the grounds, guests can enjoy a mirrored sauna, hot tub, and firepit.

"We wanted to reflect the surrounding nature with our design," French explains. "Given the stunning pine trees and view, we thought it would be a unique contrast to incorporate new and old elements."

The Restored 1909 Train Carriage was an instant success when it opened up reservations on Airbnb. Within the first week, it was fully booked out for several months. Stays range from $325 to $350 a night.

""It was gratifying to witness the rapid validation of our hard work and investment in the reception of it, which made it even more enjoyable for us to experience as a family," French remarks."

The train car's revenue has increased from $14,179 in its first year to between $75,000 and $110,000 annually, as per CNBC Make It's review of documents.

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

The profit margin is approximately 65%, with cleaning costs, maintenance, property taxes, and insurance accounting for 30 to 35% of the overall revenue.

"We can build a stronger relationship with guests through direct bookings on the train car, as opposed to using Airbnb, which feels more transactional," French explains.

Although they are well-known, French plans no plans to increase their nightly rate. They derive satisfaction from welcoming visitors from diverse backgrounds seeking a taste of history.

Webb, French's father, tells CNBC Make It that their best experience in hosting has been the gratitude almost every other guest sends to them for preserving this historical piece.

The loan for the train car project was recently paid off by French using the revenue generated from the train car.

Instead of spending money on themselves, the family is investing in the train car and enhancing the guest experience. "The demand for unique, story-driven stays is high, and restoration projects are a great way to meet this need," French remarks.

"If you lack experience in restoration or hospitality but possess a passion for hosting others and providing delight and surprises, you can still create a successful hospitality business because that's what hospitality is all about."

To achieve success with a rental property like French and his family, it's crucial to open your eyes and make connections: "There are numerous opportunities that people overlook because they've been there for so long and need to think outside the box."

Your neighbor may be the ideal partner if you lack funds or experience.

How many hidden treasures are waiting to be discovered and loved?

"He believes that love and inspiration are necessary to bring new life to a project like this and participate in it," he says.

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