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Updated over 5 years ago on . Most recent reply
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What's my next move in finding a property to AirBnb in Denver?
A few years ago I became an accidental landlord when I moved and it made much more sense to rent the condo that I previously lived in than to sell it. Now, I've built up a bit of equity in that condo and I'd like to refinance it to buy my second rental property. I purchased the condo for $120k in 2013, I currently owe $80k, and based upon sales of VERY similar properties within the condo community, I believe it would sell today for $140k - $155k (immediate neighbor just sold their nearly identical unit for $153k). In short, I think I could get at least $30k for purchasing a second property by refinancing the condo (while maintaining 20% in the condo to avoid PMI).
What are the most important factors to consider when purchasing a property with the intent of getting the best return through AirBnB? Is the BiggerPockets AirBnB calculator any good? Mashvisor? Any other tools? Should I just find a knowledgable realtor?
I work in the Boulder/Denver area and this second property will become my primary residence. I've been thinking that a 3 bedroom unit would be best, but I'm open to other ideas. I would live in one bedroom while AirBnB'ing the other two. I also travel quite a bit for work, so I could AirBnB the whole place when I'm traveling. I've been looking at properties within the $275k - $300k range for a 3 bedroom, new construction, but again, I'm open to other ideas. I'll need to move for work within a couple years and plan to convert the property to a traditional rental at that time.
What should my next move be right now? Do I need to find a realtor that knows the Denver AirBnB market? Do I need to talk to a banker to get pre-approved for a new mortgage?