House Hacking with a STR

[Erika Shiu]

Hello!

I am new to real estate investing and am on the verge of getting my 1st property underway; it's so close I can taste it! This is my 1st post and I am so incredibly thankful that a forum like this exists and for any information to help guide me through this tough decision is so immensely appreciated! I am looking at a 4 bed/3 bath property on the edge of Littleton/Denver. There are 3 bedrooms upstairs, and 1 bedroom/bathroom in the basement, there is also a separate basement entrance. My house-hack plan is to live upstairs with my boyfriend, charge him rent, and STR the basement unit. According to AirDNA, the analytics broken down are a 60% occupancy with a gross revenue of $32,000.00 in my 1st year. I have heard AirDNA is a little generous so I am hoping for a 50% occupancy, which on average would pay ~$1,000.00 per month. My dilemma is the mortgage is a little over 50% of my take home pay from my W-2 and I am worried that I am biting off more than I can chew. Another concern is the shower in the basement is also very small so I don't know if that would deter potential guests. And are potential guests interested in staying at a STR in a basement that can have occasional squeaky floors from time to time? Thank you so much for your time in reading my post and providing any clarity.

[Ashish Acharya]

@Erika Shiu House hacking with an STR is a smart strategy but ensures financial viability since your mortgage is over 50% of take-home pay. Use conservative AirDNA projections (e.g., 50% occupancy, $1,000/month net) and factor in cleaning, platform fees, and utilities.

Address basement concerns by improving the shower usability and adding soundproofing. Highlight features like the private entrance to attract budget-conscious travelers. Verify STR regulations in Littleton/Denver and secure permits. Build an emergency fund to cover unexpected costs, and ensure you can manage the mortgage without STR income if needed. With proper planning, this can be a great investment!

Don't forget the cost segregation on the SRT portion to save you taxes.

This post does not create a CPA-Client relationship. The information contained in this post is not to be relied upon. Readers should seek professional advice.