General Advice: Short Term or College Tenant Rental?

[Daniel T Stockman]

Hello BP!

My wife and I own 2 - 4bed/4bath townhomes in a college town. They both will be self managed and produce positive cashflow and a strong COC ROI.

My question is related to us considering shifting our focus to add a short term/vacation rental to our portfolio. What pros and cons are there to making this shift? And what general advice do you have around this combination and/or strategy?

Thank you!

-Daniel

[Joshua Strickland]

Pros - cash flow (depending on market) and portfolio diversity 

Cons - completely new business venture, will need to build a different team for STR.

You get equity pay down and potential for appreciation with both, which is the real wealth builder.