Commercial property AIRBNB good idea?

[Adam H.]

I’m new to the vacation rental business and looking to secure my 2nd vacation rental. 1st small cabin is in rehab. I found a commercial/ mixed building near (1 block from water and some views) a desirable vacation lake. It is a house 3 bed 2 bath ready to go, along with a pretty open 1st floor commercial space that can be converted into another airbnb. It could also be joined for one really large space which is a rare find. However, fixed costs when vacant… The space is on one of the busier intersections but the location is very good in proximity to restaurant (across street), party store walkable, beach park short walk. My main concerns are demand for “duplex style” (will this be always 2nd rate demand due to the connectedness?) and will this appreciate and have the same allure as a residential house over time? Thanks for any advice in advance! 

[Bruce Woodruff]

First thing to check is - what is the zoning? If it is allowable to do 2 STRs there, then I'd check your local competition by going on VRBO and AIR and see what others are getting for nightly/weekly stays.

I don't think there is an issue with 'duplex style'....people looking for vacation lodging stay in hotels after all..

IT may not have quite the same appreciation value as a typical house, but does that matter so much if you're raking in the $$ with STR guests?