Enough Exit Strategies?

[Derek Hilley]

Hi,

Thanks in advance for reading this. I own a duplex, and live in one half and airbnb the other half. It does great. I am thinking about purchasing a second duplex that's close to my home and renting one side long term and the other side as an airbnb. One side is currently rented for $100 below market on a month-to-month basis, and the other side is vacant. If both sides were rented at market rates each unit would cash flow $155, for a total of $310. However, I have some experience now in vacation rentals and know that I could make hundreds more by putting in the work and using it short term rentals. Atleast $1,500, and probably more like $2,500. I'm only hesitant because I will not purchase this property with equity in it. The new duplex is close enough that I could manage them both. That's what I like most about it. Thoughts?

[Ben Navarre]

Why not rent both out as vacation rentals?  Why long term on one?