Hey BP community-newbie living in Colorado Springs getting ready to bite the bullet and could use some input:
Here is my initial plan:
Have a small guest cottage built (or prefab) in the back of our lot. We always wanted one for family to stay in when they visit and more so for a short term rental-AirBnB-1 BR, sleeps 4. We live a short bike ride (5 min) from downtown CS and rates are going anywhere from $55-120/nt. and everyone I've talked to that has one says they have no problem renting out. We are going to use a heloc, savings, and liquidate our investments (only if needed) to fund this. Once we get up and rolling, our next thought is to refi and use any new equity to BRRRR into the next deal.
Long term plan is to generate $100-150k/yr between rentals and a fix and flip or 2 /yr to retire from my current occupation that has me working 60-90 hrs/wk...really hoping to buy back some time to spend with my family!
My question is: does this sound like a viable option or do I skip the short term rental and look into buy and holds right out of the gate?
Thanks in advance!
@Paul Gagich - is your lot zoned R2? The city council is talking about allowing ADUs on R1 lots but that hasn’t passed and may not. If it is zoned R2 then talk to regional building about setback and lot coverage requirements. If you have the available space and correct zoning I personally think it would be a great investment in our current market!
@Robin Searle -thanks for the quick response! My property is zoned R2. It is also a double lot which I’m hearing is rare this close to downtown. Right now it is unused and growing weeds and I agree, there is great potential. Thanks for the boost of confidence!
@Paul Gagich Sounds like an awesome lot! We are so short on inventory that adding an accessory dwelling unit will not only boost your income but also your property value. If you are looking into using it as a short term rental be sure to join the Colorado Springs Short Term Rental Alliance FB page to stay on top of regulation changes. You do need a permit and sales tax license now (as of 1/1/19) for anything less than 30 days.
Hey Paul! Sounds like you are on the right track. My wife and I "bit the bullet" earlier this year, and we now own 2 STRs in the city and operate 2 others. I would be happy to meet up sometime to talk through our experience so far.
@Robin Searle -Thanks for the info, I will add that page to my list and look into taxes, license, etc...
@Ryan Riches - sounds like you’re on the right track as well! Let’s try to meetup in the next few weeks-would be great to hear your story! I will message you. Thanks!