There is a profit but not worth the risk.  

🎉I’ve helped clients transition into STR ownership before, and your situation brings up some great questions.

@James SillsFrom my experience working with investors, transitioning from residential to commercial real estate (CRE) is an exciting and achievable goal with the right foundation.

In order to do this you need to have deal flow and you need to know 1) How to recognize a good, profitable deal, 2) How to put together funds quickly to buy the deal before someone else does and in such a way where you are protected and the deal is protected, 3) How to run the project so that you follow the budget and don't overspend or overbuild, 4) How to attract an end buyer or a renter and which documents to use to protect yourself and the buyer, 5) If you are going to keep the property then you need to know how to set up the property from the start to best help you in the refinance later, and 6) You need to know how you are planning on managing the property from the beginning in order to make sure it will be profitable at the end.

As you start closing deals, you will need to reinvest your profits into mailing lists and other scalable activities to grow your business.

Quote from @Brandon Vukelich: Question: why would you sell an asset that generates a profit today and will generate a more significant profit in the future?

I work on a ton of Padsplits in the Atlanta market and it is tough for a 4 bed co-living property to be much more profitable than a long term tenant factoring in additional utility expesnes, padsplit fees, and additional property management expenses.

I think there will be a market for it and you will gain some market share, but I don't think there will be tons of profits coming in.

The main issue is your exit is capped so if your costs go up, your profit goes down.

Turnovers and vacancy kill a rentals profitability.