If you’ve ever wondered whether a dated, dark basement can become a luxury income-generating space… the answer is absolutely yes. If you’re looking for some Airbnb decor room ideas, I’ve got you. As a Colorado real estate agent who specializes in Colorado Airbnbs, short-term rentals, and strategic tax-focused investing with bonus depreciation, my own home renovation became the best case study I could offer my clients.

I’m sharing the full story—and everyones favorite before-and-after photos.

Whether you’re thinking about investing in Colorado, looking for ways to tap into STR income without buying a second property, or you simply love a good makeover reveal, you’ll get tons of ideas (and shoppable links 👀).

Why I Chose a Basement House Hack

I’ve always been the type of person who sees potential in spaces—especially the forgotten ones. For years, every time I walked downstairs into our unfinished basement, I would think, “One day, this could become something amazing.” I could picture the separate entrance, the cozy layout, the income potential… all of it. But life kept moving fast, and the project stayed on the back burner. I've heard how people use their basements or ADUs to make money on airbnb, but wasn't sure where to start.

Then I went on maternity leave.

And like every new mom knows, maternity leave is beautiful—but it isn’t “time off.” It’s a complete life shift. I was at home with a newborn, healing, adjusting, and trying to find a new rhythm. At the same time, I had another doctor covering my patients at my clinic, and my husband was seeing patients and running the day-to-day operations. Suddenly, I wasn’t doing the work I had been immersed in for years.

So I asked myself: What’s next for me during this season of life? Where can I put my energy while staying home with the baby?

That’s when the basement idea came right back to the surface.

The truth is, I wanted something productive and creative to focus on—something that kept my mind busy in the best way. And I also wanted to contribute financially in a way that made sense for our family. Offsetting our mortgage felt like the perfect solution.

Turning the basement into a rental suite was the intersection of all the things I love:

Real estate
Design
Helping our family build wealth
And creating something functional and beautiful during a season when I needed a project that wasn’t tied to my identity as a healthcare provider

It wasn’t just a house hack. It was a postpartum project with purpose.

And seeing it transform from a cold, dark storage space into a warm, income-producing Colorado STR didn’t just change our home—it changed the direction of my career. It solidified my passion for helping others do the same, especially high-earning professionals who want to invest wisely, reduce their taxable income, and create more freedom for their families.

🔨 The Before: Dark, Cold, & Completely Underutilized

Picture this: carpet floors, white walls, 90's bathroom. No warmth. Nothing about it screamed “guest suite,” let alone “cash-producing STR.”

But what it did have:

An easy way to create a semi-private entrance
A large open layout, almost too big, what would I even do down there?
A kitchenette
A bathroom with a shower
One bedroom

Honestly? That’s all you need to get started.

✨ The After: A Funky Art Deco Den Airbnb Designed to Book Out Year-Round

Once renovation was complete, the transformation felt surreal. What was once a cold, cavernous basement became a bright, modern, welcoming suite perfect for mid-term renters, visiting family, traveling nurses, or hybrid STR/long-term tenants.

And yes—almost everything was sourced from Wayfair, which made the design process insanely easy. Fast shipping, huge selection, and budget-friendly options make it my go-to for every STR setup. I spent enough to qualify for 18 months deferred interest, I'm all about credit card hacking.

The Bedroom

One of the biggest drivers of STR success is bedroom comfort. Guests will always pay more for better sleep and a room that feels more like a vibe whenever possible. The person researching and booking as a guest is usually sleeping in this room, you want to cater to that person whenever possible.

Upholstered Wayfair Bed Frame
Hotel-Quality Bedding
Matching Bunny Nightstand Lamps
Molding Framed Wallpaper Accent Wall
Softest Throw Of All Time
Huge Mirror

The Kitchenette

If you need some short term rental kitchen ideas, remember that you don’t need a full kitchen for STR success—you just need the right essentials. Think about a hotel experience, it's nice to have an area to wash off a dish, keep food cool, warm something up quickly, but much more than that is really just a bonus. We did however equip ours with a hot pad and some cookware, and a few items like an air fryer, toaster, toaster oven, etc.

We painted these cabinets a bright emerald green, which was VERY scary for me. But they are honestly one of my favorite features in the unit. Also I will 100% pay to have someone do that for me next time, painting cabinets even with an expensive paint gun is a skill I do not want to master again.

🛋️ Living Room / Game Room

The living area became the heart of the suite. The sofa lays flat into a bed for extra sleeping, which is bonus alongside a rollaway twin we keep in a little Harry Potter closet. It seamlessly flows into the game room with a poker table the we found on Facebook marketplace and freshened up, a pool table/ ping pong table combo. Our designer helped us do market research: do we need to add another bedroom with all this extra space or add a big amenity room. We went with amenity room and think this move was one of the biggest draws for our space.

Awkward Nook - Turned Basement Bar

This little wall made no sense in my mind, and this is the exact reason I tell my clients to hire an airbnb designer, they are worth their weight in gold. It looks like this is what belonged here all along, but I promise when we first saw it this felt like wasted space before someone else reimagined it.

🚿 Bathroom

Ok so this will be its whole own blog post eventually. We went ALL out updating this, previously it was a cramped step in shower that felt like you were in a motorhome. My husband completely reframed the whole thing after bashing out a wall, put in new tile, put in heated floors, we color drenched the bathroom the same color as the bedroom and just like that we had a bathroom that felt luxurious.

The Financial Impact: Why This Renovation Paid for Itself

Here’s where the house hack becomes powerful:

✔ Increased property value

A our updated bathroom adds major equity—especially in Colorado’s competitive market.

✔ Additional monthly income

The suite can serve as a mid-term rental, traveling-nurse housing, or STR depending on season and strategy. We have had great success even in "slow" season as STR in Colorado, so we will likely keep up this approach.

✔ Bonus depreciation

Furnishings, fixtures, appliances, and even some building components can often be accelerated for tax savings. This space is 1/3 of the square feet of our home, roughly 1300 sq ft in total. We will be able to take a nearly 6 figure loss against our combined taxable income the year we put it into service, saving us over $30,000 in taxes owed come tax time.

✔ Lowered cost of living

Because we are already paying out mortgage, it really does feel like we "cashflow" any amount of money we make, because we were paying for it anyways to live here!! Our first month in slow season brought in almost $4,000! For a one bedroom basement!

Many of my clients are shocked at how attainable this can be once you understand Colorado zoning, STR rules, and tax strategy.

Considering Investing in Colorado? Here’s My Advice.

If you’re dreaming of Colorado Airbnbs, planning your first short-term rental, or thinking about a creative house hack like this, here’s what I always tell clients:

Focus on bedroom count—it’s a major revenue driver.
Choose areas with friendly STR regulations to stay compliant.
Don’t skip the design—beautiful spaces convert way better. Pay. For. The. Professional. Designer.
And if you're a high-earning professional, don’t overlook bonus depreciation. It’s one of the most powerful tools to offset taxes through real estate. You'll want to talk to your CPA about this one, or get a new CPA if they aren't comfortable with how to navigate real estate tax laws.

Whether you’re buying your first investment or optimizing the home you already own, Colorado offers some of the best opportunities in the country with low property taxes, high appreciation rates, and a timeless vacation market.

📌 Pin This Transformation & Shop the Look

This makeover didn’t just make my home more beautiful—it made it more profitable.

If you want help finding your own Colorado STR, analyzing house-hack potential, or understanding the tax advantages of investing, I’d love to connect. As a Colorado real estate agent specializing in Colorado short-term rentals, I help investors every day turn ordinary properties into high-performing assets, you can email me at info@cashflowcolorado.com.

Before & After: How I Transformed My Colorado Basement Into a High-ROI House Hack (Using Mostly Wayfair!)