How's the STR and MTR demand in Littleton, Colorado?

[Bruce Tieu]

Hi,

I'm considering submitting an offer on a property that's a couple blocks away from Main St in Downtown Littleton. It's an up / down duplex with 3 / 1 up and 2 / 1 in the basement. My intention is to live in the basement, rent out the remaining bedroom to a long term roommate, and run the upstairs as a full time STR.

I'm aware that the City of Littleton has strict short term rental regulations, but they do allow STRs as long as I have a license and I am occupying the property.  I checked AirDNA, and there is a comparable nearby that grosses $80k annually. Other comparables with the same bedroom and bath count gross $60k-70k annually. I figure for the first year, this property would gross at least $50k-60k annually. Depending on the furnishing and amenities, it seems probable I could get closer to that $80k number.

After I move out, I can no longer operate the property as a full time STR, so I want to switch the strategy to MTR. However, I am not sure how the property would perform as an MTR. My guess is that it would be about 20% less than what I'd get for a STR, which would net me between $3k-$4k a month. I'd probably not operate the property as an LTR because with such little down (5%) at today's rates, it would be negatively cash flowing.

For the investors who invest in Littleton and have a furnished rental, can you speak on what the MTR and STR demand is like? What are the average occupancy rates per quarter? What are the average nightly rates per quarter? Do these numbers and estimations seem reasonable?

Any insight is greatly appreciated, thanks!