New Member -- Looking to build and rent ADU in Denver

[Matt H.]

Wanted to introduce myself as a new member from Denver. Have an accounting and finance background along with a law degree, but no real estate experience, yet. Looking to build an ADU in Denver for short term rentals. Excited about all the educational resources available on BP.

[James Carlson]

@Matt H.

Welcome to BP and awesome idea! I love ADUs (or mother-in-law suites or basement apartments or carriage houses ...) Under Denver's new Airbnb law, they are the only way you can do a short-term rental full-time. (Damn primary residence rule and all.) 

I know a few builders specializing in ADUs. Feel free to PM me. Congrats on being in one of the few small pockets of Denver that allows for new-build ADUs. That's great.

Airdna isn't a bad product, for sure, but just like Airbnb's smart pricing, I don't fully trust it. It's all an average, and if you do above average work, then you will be pricing too low. I mean a 2br/1ba condo in Cap Hill totally remodeled inside, with an exposed brick wall, and tastefully designed with Room & Board is just not going to rent the same as a 2br/1ba condo in Cap Hill that's crap inside and has been stuffed with whatever second-hand Nebraska Furniture Mart couch you could find.

I'd always do your own research. Act as a guest on Airbnb, find places the same size as yours in the same area with similar furnishings that are getting booked. Whatever that price is, undercut it for a few stays to build up some positive reviews and then start raising your price. 

I agree with @Matt M. about the lower turnover of a traveling nurse. On the spectrum of money-making -- between long-term renting and Airbnb-style short-term renting -- that 3-6 month furnished rental is in the middle, both in terms of price and work. My wife and I own two furnished rentals and do pretty well with them, so that's always a fall-back if Airbnb becomes tedious. (Though, still, if you're in the right area in Denver -- and no ADU-allowable area is bad -- you should be able to hire a property manager specializing in Airbnb and still make a better profit.)

Good luck!