SFH or Multifamily for STVR

[Susan Sutherland]

We are looking at purchasing a STVR and I am bouncing between two thoughts (a million actually) and would love opinions. I haven't even narrowed down my market but resolving this may help with that!

1. A quadruplex and rent two units to long term renters and have two units for short term vacations

*Two that I have been looking at are in coastal city and a city with the property close to town and a university.

2. Buying SFH and just doing STVR.

*One property to manage with higher returns but not a balanced strategy with long term renters

Thoughts on the multifamily? Not sure how existing tenants would affect reviews or if that is risky.

[Avery Carl]

I probably would not try to put long term tenants next door to short term ones. Part of the reason true vacation rentals work better than metro STR's in the long run is that the entire area in most cases is made up of STR's. Long term tenants are likely to have complaints about living next to vacationers. My advice would be to go all in on a true VR so as not to dilute the model, and buy a few LTR's elsewhere.