Should I give up great tenants for STR

[Mike Mendes]

Looking for some guidance from experienced investors. I have been investing for about two years now and have two LTR’s. The lease on one of my properties is coming to an end the end of this month and I had plans of converting it to a short/mid term rental. I already make about 1k in profit on the property after all expenses but am aware of the opportunity of increased profits by converting it to a short/mid term rental based on the size and location of the home. After seeing whats going on with SVB and other smaller banks recently, coupled with the FED doubling down on continuing to increases rates, I am starting to see the writing on the wall of the tumultuous times our economy is headed in. It seems like now is a time to play defense with real estate rather than offense. If I convert the home to a short term rental I will have to put a decent amount of money into it to get it up and running, or I can just leave it as a LTR and continue to save for other opportunities that will present themselves in the near future. I have great tenants and they’ve never missed a payment or had issues. Am I having cold feet or am I being smart? Any advice?

[Patrick King]

As someone who has done both, I would say today that I would gladly take great tenants over short term rentals. The risk/reward is great, but the headaches from constantly changing tenants and having to babysit the property manager/fire the property manager is exhausting. Another additional downside to STR, is the contantly changing local government rules that apply. Just my two cents...