All Forum Posts by: Harvinder Singh

I think all the feedback you are getting are great points for you to consider before making a decision: 

I would check your city or county regulations on month to month leases. Some places could consider that a STR.

Most cities have peak rent cycles so I would look into the vacancy rates for each month. Before you decided to go this route. 

You can also do a shorter term lease like 3-6 months. Most short term lease have a premium 20-25%. See what apartment complexes in your area are doing to help set your premium. You can call the apartment complexes or see their information on line.

I would also look into how much time this type of lease could cost you. Time is money!! 

It looks like you are in Madison, WI. How close are you to the university?  You could rent out rooms to university students and get higher return on your investment. Here in Colorado Springs, students can pay between $600 -$1000 per room per month. 

I followed City guidelines for Airbnb. When we started the Airbnb the restrictions were not as strict as they are now. I would not take risk with that! Your neighbors will likely be the ones that report you as the foot traffic out of your residence can be high.  

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $408,000
Cash invested: $102,000

Purchased this investment property in highly sought after area of Colorado Springs (Old North End / Patty Jewitt). It's close to Colorado College, Downtown and easy access to I-25. Initially idea was to run as an airbnb, which we did for about 1 year. Though it made a fair amount of money it was time consuming. We changed it to a long term in the summer of 2022 and make around $500 per door.

What made you interested in investing in this type of deal?

Duplex, price and being in an area that is sought after.

How did you find this deal and how did you negotiate it?

Found the deal on the MLS. There were multiple offers and we ended up winning bc I went above asking price and reduced my commission.

How did you finance this deal?

25% down conventional loan.

How did you add value to the deal?

We bought down our rate as I did not expect rates to get lower in the future. Locked in at 3.125%. Also zeroscaped the property to reduce future maintenance costs.

What was the outcome?

It's been a great investment thus far. No regrets.

Lessons learned? Challenges?

Airbnb was a good while it lasted but it became too much of a time sucker. So converted it back to a long term rental. Upper and lower units can be tough but once we do a renovation on the upper unit it will make it more quite below.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I am a Realtor, so I represented myself.