Needing Advice re: selling or renting out a 4200 sq ft home

[Heather Hall]

Should I sell my home in Colorado Springs/ Broadmoor area or convert it into a rental?? First I will list the specs on the house and then I will list my questions. Thanks for your advice!

A) Home specs

* It is 4100 sq ft total and is essentially 2 homes in one, due to the basement apartment. The home is 3- stories, including the basement.

* basement apartment: 1200 sq ft (2 bed / 1 bath). Completely remodeled and updated with high-end finishes in 2016. The apt does not have its own entrance from the exterior; it must be accessed from the interior of the home via a basement door and stairs off of the living / kitchen area.

* The main home is 2900 sq ft (3 bed/ 2.5 bath) and has 2-floors. Completely updated kitchen/living/ dining/bathroom with high-and fixtures in 2016. The master bath and guest bath upstairs were not remodeled but they are in good shape. Attached 2- car garage.

* The home sits on a 1- acre lot, and the backyard is a tiered oasis with fountains frequented by deer, great views, gazebo, fire pit, hot tub, and several different seating areas with incredible trees

B) Questions/ comments:

* Is it best to sell now or will the market be even stronger next spring/ summer? Or is it best to hang onto as a rental for years to come, providing passive income?

* If the home becomes a rental, Is STR or LTR better?

* If STR, is it best to have a minimum rental period of 30 days, such as a corporate rental? Or a vacation rental of 3-7 days minimum rental? (I'm leaning toward STR/ corporate rentabecause that allows me into the home every few months or every few weeks, to make sure it is still in good condition)

* If LTR, is it more risky, due to wear and tear on such a large, updated home?

* Rental rates for LTR or STR?

[Jeremy Gaal]

@Heather Hall rental rates for the home could be found by looking up similar homes (though comps may be tough due to its size and the land its on). What I can tell you is the economy is strong here in COS and seems to be getting better all the time. If you've lived in the house 2 of the last 5 years you could sell it and not have capitol gains (I believe, check with someone much better equipped in this area than I am).

With that said, everything I have seen and the research I have done is saying this: the market here will likely remain strong for the next 4+ years. Even if we could double the houses being built, we still wouldn't have enough housing for the expected inflow of people. The front range is expected to double in size by 2050.

All of this to say you're in a great market. If you're looking to get into rentals, maybe a better idea is to start a little smaller home wise and cash-out refinance the big house to buy 1 or 2 smaller homes to cut your teeth on? Personally, I'm buying when I can (currently working through a new rental deal) and will continue to do so. What is it that you are looking to gain from your rental? Knowing why you are doing it will definitely help decide what path to take.

Congrats on having a fantastic property and let us know what you ultimately decide to do.