Thoughts on Duplex Purchase w/ some Airbnb Activity - Buffalo

[Laura R.]

I'm hoping to get further in my attempts to purchase a vacant duplex home in City of Buffalo soon without being outbid. 

I'm thinking about renting 1 unit long term and keeping 1 unit open for personal use during late summer/fall. Sort of like a second home house hack. 

My first question is, how feasible would it be to Airbnb the personal unit the other months of the year when we aren't using it? I see there are some City registration requirements/fees and it doesn't look like there are a ton of Airbnbs in the city already. My goal would be for it to be quiet apartment stay and not a party house or nuisance, I would not want to disturb the long term tenants or neighbors. 

Second question, what is the best way to approach this from a mortgage perspective? I'm already pre-approved for a conventional investment loan and my intention was to create an LCC and transfer the deed after closing. I'm not sure if a second home loan would be any benefit in this scenario vs. an investment purchase loan? 

I'm out of state so I'm going to need a property manager. I'm not sure if any property management is doing both long term and Airbnb but I guess could go with two separate companies worst case. I would appreciate any recommendations. 

Thank you! 

[Kevin Castano]

Hey Laura,

This sounds like a great idea. If you were to use the second unit for airbnb you would need to set the exception on your airbnb listing that no parties or events are allowed, music cant be loud after 10 pm , etc .. and what your minimum person occupancy would be and plan your calendar accordingly for when you would be using it. 

The 2nd question would be a great question for your mortgage professional and to weigh out the pros and cons and what would make sense for you.

In terms of property management it really depends on if the property management company is familiar with the airbnb process and what you expect them to do for you. 

So from my experience, I am currently a co host/manager for an AirBnb where the landlord is out of state. My position is really boots on the ground. i am in charge of communicating with guest, scheduling the cleaning team and taking the laundry to the cleaners, dealing with issues incase something on the property isn't working, double checking the cleaning teams work to make sure the property is in tip top shape. So it really depends on what you would need your manager to do for you. 

Hope this helps.

Best, 

Kev