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Updated about 3 years ago on . Most recent reply

User Stats

295
Posts
75
Votes
Leland S.
  • Developer
  • LA, Nashville TN
75
Votes |
295
Posts

Which townhome should I short term rent?

Leland S.
  • Developer
  • LA, Nashville TN
Posted

I have the option to owner-occupy one of 4 townhomes I am building and rent/sell the other 3. I built the 4th unit converting a bedroom to a downstairs kitchenette/bonus and separate entry for the purpose of allowing someone to owner-occupy that unit - more valuable in a sale in that case. 

Should I Short Term Rent the unit with 4 beds/4 baths or use the one with 3 beds, 3 bath, and the bonus area just for the convenience of potentially permanently living in the downstairs and renting the upstairs? I assume having a couch bed would allow the same number of sleeping guests minus the convenience. I don't know that short-term renters would care that much for the kitchenette given the 2nd floor is a large open gathering area and there's a wet-bar at the roof deck entry anyway.  

I'd assume 40k gross income from the extra 2 bedrooms (if I were to ever reside permanently in the downstairs, which is not very likely). So it may be better to keep the 4th unit to sell while allowing myself to maintain short term rental of the 4 bed.

Floor plans below: Right floor plan is the 3 bed with bonus and kitchenette separate suite.

1st floor:

2nd:

3rd: 

Roof:

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