MULTI FAMILY AIRBNB OWNERS?

Question

Does anyone have a multi-family Airbnb (units within one house?) I am looking at a house that’s a converted single family. It has two 1 bedroom apts on first floor and one 3 bedroom apt (2nd and 3rd floors). The current owners occupy everything but one of the 1 bedroom apartments- which is on Airbnb and it currently grosses nearly $40,000 a year. The house is selling for $599k. Taxes are $4200 and I’d use the house with my family to vacation when it’s not rented during low season - so I’d get a 10% down second home loan. The mortgage all in, would be about $4200/month. This deal seems like a no brainer based on the fact that the income from just one of the units would cover 80% of our mortgage for the year. However, my questions revolve around managing multiple guests under one roof - I’d love to chat with anyone who may have hosted a multi-family on Airbnb. Thank you.

Lisa Loesel · Answer

I have a duplex and a 3 unit that I use for short and midterm rentals. I agree, it's nice to be able to cover most of the overhead on one unit; having multiple units limits your risk a bit.

I think the key is disclosing this in the listing and setting expectations about common space and noise. I explain it in my listing and then again in my check in instructions. Every once in awhile I do have a loud group that is bothersome to the other renters and needs to be addressed, but I rarely get complaints. I also do midterm during the off season so when you have a group staying for a few months, there is less potential for noise. Most people understand there will be some noise in this situation, it's really not that much different than what you would expect at a hotel.

Chase Hoover · Answer

Yep we did a lot of this in Florida - convert dup/tri/quad into STR apartments and they did very well.  Just be clear in the listing description and advertise them as private apartments with common outside spaces.

Shannon Smith · Answer

Yes full apartments. Vermont. not great as LTR. But very lucrative for STR. We have another STR nearby

Michael Baum · Answer

Hey @Shannon Smith, ok, so they are full apartments? Bathrooms, kitchens etc?

Where is it located? What will bring people to the area?

This might do almost as well as a regular LTR with much less headache. Have you done a comparison?

Luke Carl · Answer

Multi-family short term rental is also k Jen as a hotel.

I think what you’re talking about is called co-living. It’s very common in Europe.

Travis Elliott · Answer

I am interested in getting into Airbnb in Montana. Rents are high right now but I believe that rents, like every thing else will ge down. House prices in my state are horribly priced.