Buying an AIRBNB Pool House in Canada's Coldest City : Our Risky $635K Investment

Buying an AIRBNB Pool House in Canada's Coldest City : Our Risky $635K Investment

We did something that many would call crazy. In a Canadian real estate market filled with turmoil, negative economic news, and fear, we went in the opposite direction of everyone else. We decided to purchase our latest short-term rental acquisition: a pool house in Edmonton, a city where winter temperatures can plummet to -40 degrees.

This is a contrarian move that could be our best or worst idea ever. In this post, we’re pulling back the curtain to show you exactly why we invested in this unique property. We’ll break down:

Why we believe fear in the market creates opportunity.

How we used data to find a winning formula in our city.

The numbers behind our $635,000 purchase and its massive ROI potential.

The STR Investor's Mindset: Finding Opportunity in a Fearful Market

As professional STR investors, our ears perk up when we see fear and turbulence in the market. While others are scrambling and scared, we see it as a time when the best deals begin to surface. True fear for an investor should come when markets are in a frenzy; opportunity arises when they are not.

This property was a perfect example. It had been sitting on the market for over a year. It was originally listed in the high $700s, a price the market would no longer support. When it was relisted at $675,000, we took a look and immediately found the problems—and the opportunities.

The Smell: The house had an overwhelming smoke smell, which is an immediate turn-off for most homebuyers, especially families. For us, this was a sign of potential, as smoke remediation is a relatively easy fix with paint and an ozone treatment.

The Potential: Beneath the smell was an enormous property: seven bedrooms, four bathrooms, and a beautiful pool on an 8,000-square-foot lot in a mature neighborhood.

Problems like these are where investors can add value to an asset. A perfect house likely won't make you as much money because the opportunity for improvement isn't there.

How Data Revealed a Winning Formula

Our decision wasn’t just a gut feeling. We performed extensive due diligence, starting with a deep dive into our local market on AirDNA. The process was simple but powerful: we looked up Edmonton and sorted the top-performing short-term rentals by their annual revenue.

A clear pattern emerged. The listings that are thriving are not the "bad" or "commodity" listings with just four walls and a bed. Those are losing pricing power. The properties that are actually working are doing three things right:

They Solve for Space: The top STRs in Edmonton were all large homes, typically with six or seven bedrooms.

They Offer a Unique Experience: These properties had unique amenities and a strong, appealing aesthetic.

They Have a "Draw": The number one performing listing in the entire city was the only one that had a pool.

Our target property hit all three of these points: it was a large home that solved for space, and it had the unique amenity of a pool.

Our Vision: A Private Nordic Spa Experience

Knowing what works, we decided to take it several steps further. We are transforming this home into a private Nordic spa experience. While Canada has many public Nordic spas, offering a completely private retreat in a city setting is a game-changer.

Our vision includes:

A barrel sauna

A cold plunge

A fire pit and relaxation area

A yoga room and massage table

Partnerships for private chef experiences

This strategy leans into the wellness market, creating a unique, high-value destination that will stand out.

The Numbers Behind the Deal

An amazing vision means nothing if the numbers don't work. Here’s a breakdown of our investment:

Purchase Price: We negotiated the seller down $40,000 to a final price of $635,000.

Upfront Investment: After a 20% down payment, closing costs, furnishings, and all the spa amenities, we project a total upfront investment of around $200,000 to $225,000.

Monthly Overhead: The property is expected to cost between $5,000 and $5,500 per month to run.

Based on our market analysis, we projected three potential revenue scenarios:

Conservative: $125,000/year in revenue, leaving a net profit of roughly $60,000.

Expected: $150,000/year in revenue, for a net profit of $84,000.

Best Case: If we go above and beyond the top listings, we believe the property could generate $200,000/year or more, with a potential net profit of $120,000 to $140,000 annually.

With these projections, this investment has the potential to pay for itself in just 5 to 7 years.

What Do You Think?

We get possession of the house at the end of this month and will take you along for the entire journey—from design and renovation to going live and getting bookings. We want to know what you think.

Did we make a great decision or a stupid one?

If you were booking a private Nordic spa, what features would you want to see?

Got Questions?
Reach out on STR Wealth Academy channels or drop a comment below. We’re here to help you navigate the chaos and come out stronger.

Happy Hosting! 🎉