Airbnb Rental - Michigan

[Philip Briskin]

Hello - I am looking at purchasing a house that currently has an Airbnb tenant under contract until March 2020 (with unlimited 6-month extensions after that). The property is zoned multi-family and is in an excellent location. When running the numbers, the CF and ROI only work if it stays an Airbnb. It's currently $2000/month. It had a daily rate of $110. The monthly rent for a house like this is $1600. This is my first step into the Airbnb world. I have 7 other rentals that I manage myself. This would be added to my portfolio. My question....does it make sense to pursue this investment given the uncertainty of the local rules with Airbnb rentals. In my analysis, I'm assuming a 20% vacancy factor. Any and all comments welcome. Thank you!