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Palo entrepreneur brings historic train cabooses to life as new Airbnb
Former railroad property completed by converted rental

Jan. 18, 2025 4:45 am, Updated: Jan. 20, 2025 9:39 am
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CEDAR RAPIDS — When she dreamed it up years ago, it would’ve been called a bed-and-breakfast. Today, it’s an Airbnb.
But about 30 years later, the vision looks about the same as former travel agent Karla Sibert gets back to her roots in a roundabout way.
On her long, narrow property, a new Airbnb made of decommissioned train cars brings everything full circle in rural Palo.
If you go
What: A Lil’ R&R
Where: Rural Palo
Cost: Average nightly rate is $129
How: Find more information and book online at alilrr.com
Details: A Lil’ R&R’s vintage train cars are available to rent on Airbnb. The two cabooses from 1912 and the 1940s sleep six in a cozy 900-square-foot living area complete with laundry, one bathroom, a deck, and 80 acres of walking trails just steps away.
How it happened
Ever since she bought the former Chicago Milwaukee Railroad right of way in 1994, Sibert has had the idea for “A Lil’ R&R” — a little rest and relaxation on a little piece of the railroad.
“I own the whole mile. It’s 200 feet wide and a mile long,” she said. “This is something I dreamed back in 1995.”
She thought a bed-and-breakfast in an old train car would romantically complete the property’s story.
But life’s path had a few detours in mind for her. Sibert left her travel agent career of 11 years in 1995 and ultimately purchased the Mound View neighborhood Dairy Queen on 16th Street NE, which she continues to run today.
Through the ups and downs, her parents helped her keep the property she loved on several acres off Benton-Linn Road, where she continues to live today. After they died, she decided to do something meaningful with the inheritance they left for her.
So a few years ago, Sibert decided to make good on this dream by traveling to a junk yard in southeastern Iowa known for having train cars. The selection was poor in quality and high in price.
She left crying, but wouldn’t be sad for long.
“So I came home, and thought I’d see what Facebook Marketplace has,” she said.
“All aboard,” the popular app for secondhand goods replied by showing her a train car listing south of Chicago.
The train cars’ history
One of the train cars is a 1912 wooden caboose; the other transported Ball Mason jars starting in the 1940s on EJ&E, Elgin, Joilet and Eastern railways.
Wooden cabooses were retired in 1971 following an order from the Federal Railroad Administration.
For 28 years, the cars seated diners at Enrico’s Italian Dining in Frankfort, Illinois. In 2002, the restaurant sold its land for new development and changed locations, forcing the retirement of its “dining cars.”
For about 20 years after that, the cars were renovated and held by the owners of a landscaping company.
Bringing the train to Iowa
After procuring the cars, they were transported to Sibert’s property in November 2022 via three semi-trailers.
Sibert installed a new septic tank, added electricity, built a deck and stairs and made the inside livable with added insulation, a bathroom and laundry area.
Today, the two cars — one bedroom and living area in each — are connected by an enclosed foyer, but remain separated by a pair of doors from for added privacy.
Wallpaper was removed and walls were painted, but the floral pattern carpet was kept. Thrifted antiques furnish various corners as railroad relics from yesteryear build on the decor, appealing to thousands of railroad enthusiasts who can be found in multiple Facebook groups.
In its first year, the property has been busy — 107 reservations have been booked from travelers all over the country.
With two beds and a sleeper sofa, the 900-square-foot rental sleeps six.
Comments: Features reporter Elijah Decious can be reached at (319) 398-8340 or elijah.decious@thegazette.com.