Moving out of primary and keep it as STR vs MTR

[Christine Cho]

Hello all,

I'm in Denver market and will be moving out of my primary residence, a SFH I've been living upstairs and AirBnB the basement doing my own cleaning. When I move out I will be renting out my upstairs as LTR. For basement, I have three options:

1. Keep operating STR and hire a cleaner, and give incentive to the LTR tenant as I'll need them to set up STR license for Denver (Denver does not allow STR if not primary residence)

2. Switch to MTR (I can do my own cleaning)

3. Hybrid of STR during high months (April - October), MTR during low months

Based on 14 months of historical earnings, I've conservatively estimated below with monthly $500 cleaning fee and $100 incentive to LTR tenant when applicable:

1. STR monthly earnings: $2000 (2600 - 500 - 100 incentive to LTR tenant)

2. MTR monthly earnings: $1700 (no cleaning fee to extract)

3. April - October earning is $2500 (3100 - 500 - 100), rest $1700 (MTR is higher during low months than STR - is this accurate? STR during low months is $1500 (2100 - 500 - 100))

TLDR;

1. STR: $2000

2. MTR: $1700

3. Hybrid: $2150

To me, there is no clear winner here since more cash flow means more work and planning. I want to see if I left out anything and if my assumptions are solid. And if there is anyone who went through this, I'd love to hear!