Three different approaches to short-term rentals in Hot Springs. A live-in Airbnb, a full-service hosting company, and a remote operator 500 miles away. All making it work.
Dorothy Epp and Paul Walhus are a married couple who want to have it all — live on Lake Hamilton, run an Airbnb from their home, and build a web development studio in their shop. Here's how they're making their home work double duty as both a personal residence and an income-generating short-term rental.
Most people think of Airbnb hosting as something you do with a second property. Dorothy and Paul are flipping the script — they live in their Lake Hamilton home full-time, but when they travel (which they do frequently, splitting time between Arkansas and Texas), the house becomes a high-end Airbnb listing. When they're home, they're "guests" in their own space — keeping the house Airbnb-ready at all times.
This model works because of one key insight: if your home is always guest-ready, your life is simpler, not harder. You keep the house clean, organized, and clutter-free — which is how most people want to live anyway. The Airbnb income subsidizes (or fully covers) the mortgage, taxes, and insurance.
The lifestyle equation: Live in a beautiful Lake Hamilton home. Keep it immaculate. When you travel, flip the listing on. Come home to a spotless house and a deposit in your bank account. Repeat.
The key to living in your own Airbnb is clean separation. Dorothy and Paul use their 2-car garage as their personal storage zone — completely off-limits to Airbnb guests. Everything personal goes in the garage before a guest stay: personal photos, medications, valuables, work equipment, extra clothing, and personal documents.
The house stays guest-ready at all times. This means:
White sheets, white towels, always. They live with these too. When guests come, nothing changes — the bed is already made.
Basic pantry staples (coffee, tea, sugar, oil, spices) stay stocked for both personal use and guests. Upgrade for guest stays: wine, local honey, welcome snacks.
No key handoff needed. Generate a new code for each guest. Delete it after checkout. Dorothy and Paul have their permanent code.
Every room stays "listing photo" clean. This becomes a lifestyle — less clutter, more intention. Guests see exactly what the photos show.
The hot tub is the #1 amenity on Lake Hamilton Airbnbs. Keep it clean, balanced, and heated. Use it when home. Guests love it.
Exterior cameras (Ring/Blink) for security. Disclosed in the listing per Airbnb policy. No interior cameras ever. Peace of mind for both parties.
Dorothy and Paul have a 30x30 detached shop on the property that they're converting into a professional web development and real estate technology studio. This space is entirely separate from the Airbnb — guests don't access it, and it gives Paul a dedicated workspace that doesn't interfere with the rental.
| Project | Details | Est. Cost |
|---|---|---|
| Air Conditioning | Mini-split HVAC system (heating + cooling). A 30x30 shop needs a 24,000-36,000 BTU unit. DIY-friendly installation with pre-charged line sets. | $2,500 – $4,500 |
| Water Line from Well | Trench from the existing well to the shop (~50-100ft depending on layout). 1" poly pipe, frost-line depth (12-18" in AR). Need a plumber for the well tie-in and a trencher rental. | $1,500 – $3,000 |
| Electric Submeter | Submeter from the house panel to the shop. Allows tracking shop electric usage separately. 100-amp subpanel in the shop for equipment, lighting, HVAC, and charging. | $800 – $1,500 |
| Water Submeter | Submeter on the water line to the shop. Tracks water usage for the studio separately from the house. Useful for tax deduction documentation (home office). | $200 – $400 |
| AT&T Fiber Internet | AT&T has been laying fiber on Echo Pt for months — estimated 30 days from activation. Run fiber to the shop for a dedicated high-speed connection. Essential for video production and web development. | $50 – $80/month |
| Studio Buildout | Insulation (spray foam walls + ceiling), drywall, LED lighting, workstation area, video production corner, network rack, and flooring (epoxy or LVP). | $3,000 – $6,000 |
| Total Shop Conversion | From empty shop to professional studio | $8,000 – $15,400 |
The tax angle: The shop-as-studio is a legitimate home office / business space. HVAC, internet, electric, water, buildout costs, and a percentage of property taxes and insurance are potentially deductible as business expenses. Consult a CPA — this can save thousands annually.
A Lake Hamilton home at 186 Echo Pt can realistically generate strong Airbnb income even with owners living there part-time:
| Scenario | Nights Rented | Avg Rate | Gross Revenue |
|---|---|---|---|
| Conservative (rent when traveling) | 90 nights/year | $185/night | $16,650 |
| Moderate (dedicated rental months) | 150 nights/year | $195/night | $29,250 |
| Aggressive (primarily rental, live in shop/travel) | 220 nights/year | $210/night | $46,200 |
Even the conservative scenario covers property taxes, insurance, and utilities. The moderate scenario likely covers the full mortgage payment. The aggressive scenario turns the house into a profit center.
The 14-day tax rule: If Dorothy and Paul rent fewer than 15 days per year, the income is completely tax-free — they don't even report it. Rent only during Oaklawn racing season weekends and pocket $3,000-$5,000 with zero tax obligation.
The secret to the live-in Airbnb model is that your home doesn't feel like an Airbnb when you're living in it. It feels like a well-kept, intentional, beautiful home — because that's exactly what it is. The Airbnb aspect is just a switch you flip when you leave.
Russell and Rachel Hoffman run a short-term rental hosting service right across the street from Echo Point. They've built a business model that most aspiring hosts dream about: a partner buys the houses, and the Hoffmans do everything else — listing, marketing, guest communication, cleaning, restocking, and turnover. It's a full-service STR management operation built on partnership.
The Hoffman model is simple and powerful: an investment partner acquires residential properties in the Lake Hamilton area. Russell and Rachel then transform each property into a turnkey Airbnb — furnishing, photographing, listing, pricing, managing guests, and handling all turnover between stays.
The investor gets passive income from properties they never have to touch. The Hoffmans earn management fees and build a scalable business. Both sides win.
Furnishing, decor, kitchen stocking, amenity installation (hot tubs, fire pits, games). They know exactly what Lake Hamilton guests expect.
Listing photos, drone shots of the lake, and seasonal updates. The listing is the storefront — they invest in making it perfect.
24/7 guest messaging, booking confirmations, check-in instructions, mid-stay check-ins, and review management. Response time under 1 hour.
Rate optimization based on seasonality, events (Oaklawn, festivals), competitor analysis, and demand patterns. Prices adjust daily.
Same-day turnovers between guests. Deep cleaning, linen changes, restocking supplies, and property inspection after every checkout.
Coordinating plumbers, electricians, HVAC techs, and handymen. Handling guest emergencies. Keeping properties in top condition year-round.
Most investors don't want to be landlords. They want returns. The Hoffman model gives investors:
The revenue split: Typical STR management fees run 20-30% of gross revenue. On a property grossing $40,000/year, that's $8,000-$12,000 in management income per property. Scale to 5 properties and the Hoffmans are earning $40,000-$60,000/year in management fees — plus the investor is netting $28,000-$32,000/year per property after fees.
You don't need to own the property to build an STR business. The Hoffman model proves that operational expertise is as valuable as property ownership. If you're great at hospitality, marketing, and operations — but don't have the capital to buy houses — find an investor who has capital but doesn't want to manage. It's one of the fastest-growing models in the STR industry.
Dillar Schwartz isn't a casual investor — she's one of the most accomplished real estate professionals in Texas. A top 1% agent nationally with eXp Realty, founder of The Dillar Group, Master Certified Negotiation Expert (MCNE), and a broker who has trained over 200 agents. She was #2 in transactions and #6 in income for her region in 2024, earned multiple Platinum Top 50 recognitions, and was nominated for the Austin Board of Realtors' Cultural Icon Award. When someone at this level buys a short-term rental property in Hot Springs and manages it from 500 miles away — that tells you everything about the market opportunity.
Dillar describes herself as an "ATX Realtor, Wine Drinker, Adventure Seeker" — and that pretty much captures her energy. She's married to Keri Moss, runs The Dillar Group in Austin, and has built a personal brand that extends across multiple platforms. She's also forward-thinking enough to own austinhomesforsale.ai — she understands where real estate and technology are heading.
With 20+ years in Austin real estate, Dillar knows investment properties better than most. She's trained over 200 agents, earned multiple Platinum Top 50 recognitions, was nominated for the Austin Board of Realtors' Cultural Icon Award, and ranks in the top 1% nationally. When someone at this level looks at where to put their own money, you pay attention.
Dillar closed on her first Hot Springs property — the "Killar Abode" — on March 1, 2021. The home sits on the east side of town, up high with east-facing views where you can watch the sunrise over Hot Springs National Park from the front porch. It's just 3 blocks from the Pullman hiking and biking trails, and 1.2 miles from Central Avenue — the main drag with bathhouses, restaurants, shopping, and nightlife.
She also operated 405 Ward St — a 4-bed, 2-bath, 1,710 sqft home just 4 minutes from Historic Bathhouse Row. She sold it on May 31, 2024 for $245,000 through Nancy Bergeron at the Bergeron Group. The listing described it as an "Active STR" that was "beautifully decorated" and came "fully furnished with the active short-term permit conveys" — a true turnkey investment. It sold in just 19 days on market. The cycle of buy-operate-profit-sell is exactly how savvy STR investors build wealth in Hot Springs.
The 405 Ward St math: Dillar bought this property, ran it as an active STR collecting rental income for several years, then sold it fully furnished with the STR permit for $245,000 — in just 19 days. A buyer in Austin, TX identified Hot Springs as the investment market, operated remotely for years, profited from rental income the entire time, and exited cleanly through Nancy Bergeron. That's the complete STR investment lifecycle executed perfectly.
Why Hot Springs and not Austin? A property that costs $500K-$700K in the Austin metro costs $150K-$300K in Hot Springs — with comparable Airbnb nightly rates. Hot Springs' 2 million annual visitors provide demand that doesn't depend on a single city's economy. And the location near the national park and Pullman trails gives the Killar Abode a unique appeal that generic suburban Airbnbs can't match. Dillar doesn't invest on emotion. She invests on data. The data says Hot Springs.
Dillar and Keri live in Austin full-time. The Hot Springs properties run entirely through technology and a local team — including a cleaning crew and handyman she's never in the same room with. She manages guest communication, pricing, and calendar from her phone. It's the model that every out-of-state investor wants to see: proof that you can buy in Hot Springs and profit from 500 miles away.
Smart locks (remote code generation), Ring cameras (exterior only), smart thermostat (adjust remotely for guest comfort and energy savings), and WiFi monitoring.
A reliable local cleaner is the backbone of remote management. Dillar's cleaner handles turnovers, restocking, and is her eyes on the ground after every checkout.
A trusted local handyman handles maintenance emergencies. Leaky faucet? Broken appliance? One text and it's handled — Dillar doesn't need to be there.
Pre-written auto-messages handle 90% of guest communication: booking confirmation, check-in instructions, house manual, mid-stay check, and checkout reminders.
PriceLabs or similar tool adjusts nightly rates automatically based on demand, season, and competitor pricing. Dillar checks her dashboard weekly, not daily.
Syncs her Airbnb, VRBO, and direct booking calendars automatically. No double-bookings, no manual calendar updates. One system manages everything.
| Tool | Purpose | Monthly Cost |
|---|---|---|
| PriceLabs | Dynamic pricing | $20 |
| Hospitable (or Guesty) | Channel manager + auto-messaging | $25-40 |
| August / Schlage Smart Lock | Remote access codes | $0 (one-time $200) |
| Ring Cameras | Exterior security | $10 |
| Nest / Ecobee Thermostat | Remote climate control | $0 (one-time $150) |
| NoiseAware / Minut | Noise monitoring (no recording) | $10-15 |
| Total Monthly Tech Cost | $65-85/month |
Dillar's additional costs vs. a local self-managing host:
Total additional cost of remote management: roughly $3,000-$5,000/year above what a local self-managing host would spend. On a property grossing $30,000-$45,000/year, that's a 7-15% premium for the freedom of managing from anywhere.
The takeaway for out-of-state investors: You don't need to live in Hot Springs to own and operate a profitable STR here. Dillar proves that with the right technology, a reliable local team, and smart systems, you can run a 5-star Airbnb from 500 miles away. The key ingredients: a great cleaning team, smart locks, a handyman on speed dial, and automated guest communication.
This property is a masterclass in how to build a high-revenue Airbnb around outdoor entertainment and lake lifestyle. Purchased in December 2022 for $775,000, the owners transformed a 1959 lakefront home into one of the most-booked vacation rentals on Lake Hamilton — listed on both Airbnb and VRBO simultaneously.
293 Echo Point sits on 125 feet of Lake Hamilton waterfront at the end of a quiet residential street. The home is 2,368 sqft with 4 bedrooms, 9 beds, and 2 bathrooms — configured to sleep large groups. Built in 1959, the home has been modernized with a focus on outdoor entertainment that maximizes the lakefront setting.
This property doesn't just offer a place to sleep near the lake — it offers a destination experience. The outdoor spaces are the star of the listing:
Outdoor tiki bar overlooking the lake. This single amenity is a listing photo magnet and a major booking driver. Guests picture themselves there before they even read the description.
Lakefront fire pit with seating. Evening s'mores by the water is the #1 review mention. Low-cost amenity, massive impact on guest experience.
Hot tub with lake views. The single most-searched amenity on Airbnb in the Hot Springs market. Properties with hot tubs charge $30-50/night more.
Full outdoor kitchen and grilling station under cover. Groups cook out every night instead of eating at restaurants — and they love it.
Direct lake access with dock. Free kayaks for guests. The lake is the amenity — everything else just makes it more enjoyable.
4 bedrooms with 9 beds configured for large groups. Family reunions, friend trips, and celebrations. More beds = more guests = higher nightly rates.
At an average nightly rate of ~$257 on VRBO (Airbnb rates may differ):
| Scenario | Occupancy | Nights/Year | Est. Gross Revenue |
|---|---|---|---|
| Conservative | 50% | 183 | $47,000 |
| Average | 65% | 237 | $61,000 |
| Optimistic | 80% | 292 | $75,000 |
The investment analysis: Purchased at $775K, grossing $50K-$75K/year, this property returns 6.5-9.7% gross yield before expenses. After expenses (35-40%), net cash flow is $30K-$45K/year — plus the property itself is now estimated at ~$800K (Redfin), meaning it has appreciated while generating income. This is textbook STR investing on Lake Hamilton.
Just two doors down from the $775K showpiece, this 1962 ranch-style lakefront home tells a completely different STR story — one of value-based investing. Purchased in April 2019 for $320,000, the property is now estimated at over $524,000 by Redfin. That's 64% appreciation in under 7 years — before counting any rental income.
286 Echo Point is a 3-bedroom, 2-bathroom ranch home built in 1962, sitting on Lake Hamilton waterfront on the same street as the $775K listing. It's a classic mid-century lakefront home — the kind that Hot Springs has hundreds of, and the kind that savvy investors are snapping up.
This property proves the most powerful equation in Hot Springs STR investing: buy a modest lakefront home at a reasonable price, let it appreciate, and generate rental income while you wait.
| Metric | At Purchase (2019) | Current (2026) | Change |
|---|---|---|---|
| Property Value | $320,000 | ~$525,000 | +$205,000 (+64%) |
| If Rented at $185/night, 60% occ. | ~$40,500/year gross revenue | ~$283K total over 7 years | |
| Total Return | Appreciation + Rental Income | ~$488K on $320K investment | |
That's a 152% total return in 7 years — from a modest 3-bedroom ranch on Lake Hamilton. No renovation required. No fancy tiki bar. Just lakefront + location + time + rental income. The property practically paid for itself while doubling in value.
You don't need $775K to get into the Lake Hamilton STR market. The 286 Echo Point story proves that a $300K-$350K lakefront ranch home can generate $35K-$45K/year in rental income while appreciating 8-10% annually. That's a wealth-building machine — and there are dozens of similar properties available on Lake Hamilton right now.
The lesson: In Hot Springs STR investing, the lake is the amenity. Buy waterfront at the price you can afford, put it on Airbnb, and let the lake do the selling. Time and compound appreciation do the rest.
Wallace Stone spent 15 months transforming a warehouse across the street from historic Majestic Park into something that has never existed before: the first Airbnb in America designed to sleep an entire baseball team and their families. Up to 42 guests. 11 bedrooms plus a 7-bunk dormitory. An indoor retractable batting cage. And it sits across the street from where Babe Ruth and Hank Aaron once played. This isn't an Airbnb — it's a destination. And it's been featured on KARK, FOX 16, and the Hot Springs Sentinel Record.
Wallace Stone heard from a player's parent that one of the biggest challenges travel baseball teams face isn't the competition — it's the travel arrangements. Booking 15-20 hotel rooms for a tournament team, keeping families together, and finding space for team bonding is a logistical nightmare. Stone saw the problem and built the solution.
Hot Springs has deep baseball history — Majestic Park hosted spring training for Major League teams in the early 1900s. Babe Ruth, Hank Aaron, and dozens of legends trained here. Stone built the Clubhouse directly across the street from that history, and wove it into every detail of the property.
Retractable indoor batting cage where teams can practice. No other Airbnb in the country has this. It doubles as event space when not in use.
Reclaimed wood and bricks from the historic Majestic Hotel. Staircase lined with vintage black-and-white baseball cards. "Everywhere you look, you should be going 'Wow'" — Stone.
Commercial-scale food prep for 42 guests. Team dinners, family cookouts, and post-game meals — all under one roof.
Luxury viewing area overlooking the indoor batting cage. Custom jumbotron. Xbox gaming stations. Pool table. The ultimate team hangout.
Team-sized laundry facility. 42 guests generating tournament laundry = industrial capacity is a must. Stone thought of everything.
Private outdoor grilling area with balcony overlooking Hot Springs Creek. Team BBQ after practice at Majestic Park across the street.
Notable guests already booked: Descendants of Babe Ruth and a baseball team from Hot Springs' sister city, Hanamaki, Japan. Stone plans to expand the Out of the Park concept to other cities. Website: baseballairbnb.com
Wallace Stone didn't build another lakefront cabin or downtown condo. He identified a specific unserved audience (travel baseball teams), built a product that perfectly solves their problem, and created something so unique it generates free press coverage. The property books for events, parties, and weddings in addition to baseball — but the niche positioning is what makes it discoverable and memorable.
The takeaway: In a market with 2,300+ Airbnbs, the ones that win aren't the cheapest or the biggest — they're the most specific. Find an underserved audience, build exactly what they need, and own that niche completely.
Starlight Haven has built what most glamping operators only dream about: a multi-location outdoor resort brand with 2,000+ guest reviews, Superhost status, and properties across two states. Their Hot Springs location features treehouses, geodesic domes, and luxury glamping tents nestled along a creek in the Ouachita Mountains — minutes from downtown. They've been featured on Booking.com and Bloomberg.
Starlight Haven was "born from a passion for accessible outdoor escapes." Unlike most Airbnb hosts who manage individual properties, Starlight Haven built a brand — a recognizable name that guests seek out and return to. They operate their own booking website (visitstarlight.com) where guests save 10-15% compared to Airbnb/VRBO fees, building a direct booking channel that most hosts never develop.
Multiple treehouses including Deer Run ($312/night), Whispering Pines, Whippoorwill, and Firefly Ridge. Private hot tubs, forest views, and artisanal interiors. 2 guests each.
Recently added dome accommodations in the Ouachita Mountains. Multiple tiers available. Climate-controlled with panoramic views through transparent panels.
Luxury canvas tents on platforms along the creek. Real beds, lighting, and heating. The entry-level price point that introduces guests to the brand.
5 unit types at Cedar Bluff, AL: A-frame cabins, domes, modern cabins, glamping tents. 1,500 feet of shoreline. Proves the model scales to new markets.
The lesson for aspiring hosts: Most people think about Airbnb one property at a time. Starlight Haven thinks in brands and locations. They built a recognizable name, a direct booking channel, and a model that can be cloned to new markets. That's not hosting — that's building a hospitality company. With 2,000+ reviews and multi-state operations, they've proven it works.
In The Trees is a luxury treehouse and cabin resort in the Ouachita Mountains, operated by Medley & Company. It's positioned not as an Airbnb but as a resort experience — private jacuzzis, heated floors, in-room massages, private chef experiences, e-mountain bike rentals, and charcuterie board delivery. This is what happens when hospitality professionals build an STR operation instead of casual hosts.
In The Trees occupies a different tier than a typical Airbnb. Their positioning is closer to a boutique hotel than a vacation rental — but they operate on STR platforms and capture the same audience. The difference is in the experience layer they've built on top of the accommodation.
Not a shared hot tub — a private jacuzzi on your treehouse balcony overlooking the Ouachita Mountains. This is the hero amenity.
Private fire pit areas at each unit. Firewood provided. Complimentary s'mores kits. The outdoor experience extends beyond the treehouse itself.
Book a professional massage without leaving your treehouse. This upsell transforms a $200/night stay into a $350+ experience — and guests pay happily.
Charcuterie board delivery and private chef experiences. Revenue-generating add-ons that increase per-booking income without adding rooms.
Direct access to Northwoods and Cedar Glades mountain bike trails from the property. Bike rentals are another revenue stream — and they drive bookings from the cycling community.
Heated floors in treehouses. Full kitchens. Dimmable lighting. Luxury finishes. Every detail says "this is not camping."
The upsell model: In The Trees doesn't just make money from the nightly rate. Massages, private chefs, bike rentals, charcuterie delivery, and complimentary champagne (with new bookings) create multiple revenue streams per guest per night. A couple paying $250/night for the room might spend $400+ total with add-ons. That's a 60% revenue increase from experience upsells alone.
Hot Springs' most successful Airbnbs aren't generic — they're hyper-specific. Each of these properties found a niche, leaned into it completely, and now dominates their category in search results, reviews, and bookings. Here's what standing out looks like.
2 BR, 6 guests, $455/night. 1920s-style aesthetic with exposed brick, pool table, beer tower, and two balconies with grill. Walking distance to Bathhouse Row. The theme isn't just decor — it's a story that guests tell their friends. That story is the marketing.
1 BR, 3 guests, $155/night. Access to farm animals (pigs, goats, geese), hot tub, full kitchen. The agritourism angle attracts a completely different guest than lake or downtown listings. Families with kids book this for the animals alone.
3 BR, 6 guests, $213/night. Two-level yurt with private pier, fire pit, grill, hot tub, and boat dock. Combines glamping novelty with Lake Hamilton access. Two trends in one listing. Unique structure + waterfront = booked solid.
6 BR, 16 guests, $1,220/night. Pool, jetted tub, tavern bar, snooker table, fire pit. Free boat rental with 7-night stays. At $76/person/night for a full group, this is actually a bargain. The per-person math is the key to group pricing.
2 BR, 4 guests, $179/night. Velvet furnishings, burlesque art, theatrical dressing room, and a resident cat. Previously operated as a spa and brothel. The history is the amenity. Guests book for the story and stay for the experience.
5 BR + bunk room, 14 guests, $760/night. Hot tub, game room, covered patio, private dock, complimentary kayaks and paddleboards. At $54/person/night, it's positioned as "the ultimate family reunion spot." Groups drive the revenue; amenities drive the booking.
The pattern: Every one of these properties picked a lane and stayed in it. Speakeasy. Farm. Glamping yurt. Group estate. Burlesque history. Family lakefront. They're not trying to be everything to everyone — they're trying to be the only choice for their specific guest. In a market with 2,300+ listings, specificity is survival.
Live in your home. Rent it when you travel. Keep your personal space in the garage. Build your business in the shop. Lowest investment, maximum flexibility.
Best for: Owner-occupants who travel
Partner with investors. They buy, you manage. Earn 20-30% of gross revenue per property. Scale to multiple properties. Build a real business.
Best for: Operators who want to scale
Buy in Hot Springs, manage from anywhere. Technology + local team = passive income from 500+ miles away. True location independence.
Best for: Out-of-state investors