All Forum Posts by: James Carlson

Thanks, @Stu Waters. Good information to have for the future. 

Hey @Stu Waters. Can you tell us a little more about your experience with Beyond Pricing? When I was running a few different Airbnb rentals, I dabbled with that platform's smart pricing tool. I found that it recommended prices well below what I was actually able to get. Instead, I just watched the demand for my places and tweaked my prices accordingly. But I would have been interested in an automated pricing tool if it worked well.

The flaw in those systems, as I see it, is that they must largely rely on the prices of similar units around them. But there can be wild fluctuations from between places that are similar on paper. Maybe they've grown in sophistication since I last looked at it.

@Account Closed, be sure to update us when you get things up and running. I'd love to know how it goes. Good luck!

@Account Closed If you've got the space for it, I'd build the kitchen down there. It would make your girlfriend feel more safe and the place would be more attractive to renters. (I assume the way you're talking that there's a separate entrance for such a space?) Doing a mix of medium-term and short-term rental periods is smart. My wife and I have traveling nurses in our Capitol Hill studio, and we're getting about 50% more than we could if we rented it long-term. (We also Airbnb it for a few days to fill gaps between nurses.

You might consider trying to get a 3-6 month renter for the winter and then Airbnb-ing it from Spring through Fall. Those months are HUGE in Denver for Airbnb. Where's your place located?

Hey @Account Closed. I love the idea. Great way to get a living space and have someone else pay for it. Not sure what you mean by renting it as a business versus side money. You should be able to rent it long-term with a standard lease agreement. If you're open to a little more work but a potentially much higher return, you should consider furnishing it up nicely and renting it short-term on Airbnb. I've been looking for a house with a basement or attic to do just that. I'm happy to talk more about that. (It's my favorite topic, and my wife could use a break from hearing about it.)

Thanks for the review, @Drew Fein. It's good to have your insight, and that makes intuitive sense because having people unrelated to you under the same roof is inherent in Airbnb.

Welcome to BP, @Troy B.. Sounds like you've got some good discipline and that you know what you want. Thanks for sharing.

(And Denver's a pretty great place to visit, so it never hurts to have a reason to come out here.)

@Account Closed, I'm interested to hear from someone else who might have an idea about whether the occupancy limits apply apply to STRs. Nothing in the short-term rental ordinance prohibits you from renting on Airbnb to two unrelated people. 

Hi @Jorge Barboza Jr. Welcome to BP. I'll let other experienced investors weigh in on how they analyze deals. But a few initial thoughts of mine. I'm assuming this is a house? When you say "Seller 'says' they will work with me to carry on the business," do you mean that they will help manage the vacation rental after you purchase it? 

With city Airbnb laws in flux, I'd want to run the numbers as if the house were going to be a long-term rental. If it makes sense with those numbers, then maybe you buy it, you rent it on Airbnb, and then if city regulations change, you'd still have the cushion to turn it into a long-term rental and cash flow.

Thanks for the mention, @Drew Fein. It's an interesting question @Account Closed raises. I guess the occupancy limits only apply to long-term tenants? Otherwise you'd run into the same issue if you rented it to two friends through Airbnb. 

If you and your partner live in the basement, you could definitely Airbnb the upstairs. Because you can have only one Airbnb license, you couldn't rent out each room separately. (You can read Denver's STR ordinance here.) But there is plenty of demand for two-bedroom units on Airbnb so you likely wouldn't have a problem getting STR tenants in there. Plus, you could make a lot more on Airbnb than you would if you rented each bedroom individually to a long-term tenant.

If you do that, be sure to get short-term rental insurance, which is different from a homeowner's policy or a rental policy. I'm happy to talk with you, if you decide to go this route.

About the legality and insurance issues with living in a non-conforming basement, that's another issue.