Short Term Rental-Small Multi Family

[NaTarrio Jones]

Hello BP. I'm closing on my first STR next month. It's 25 minute drive away in Galveston, TX, what I believe you would refer to as a "drive to" market. This property I'm purchasing is Duplex with units up and down. Up is 2 Bed 2 Bath and Down is 3 Bed 2 Bath. I'm entertaining the idea of leasing the lower unit long term and placing the upper unit on AirBnB. Or placing both units on AirBnB to maximize cash flow. Do you have experience with small multi family vacation rental properties? What are some of the upsides and down sides? I would love to hear your thoughts. Thanks in Advance.

[Brendan Jacobs]

Howdy NaTarrio,

I’m an Airbnb host in Galveston and have been successfully cash flowing for a few years now. My advice:  If you are renting out multiple units on the same property on Airbnb (even if 1 is LTR), make sure to be explicit in your Airbnb listing what the multifamily setup is. Many airbnb guests value their privacy (which is why they Airbnb) and will be shocked and upset to be sharing a wall with others and your reviews will suffer. If you are up front about the setup, it might deter a small percentage of guests, but will be better long term.
Just my opinion though!  Good luck!