Duplex vs. Single Family for STR???

Question

Hi all,

First time posting but been here a while…. I'm currently at a point where I'm trying to decide whether to convert my duplex (2) 2 bed 1 bath into a 4 bedroom 2 bath single family for STR. Either way I plan on doing STR with the property. I'm a GC so I have my company office and shop below with the units above. The property is in Boone, NC which has become a (4) season destination town and has a 4 year University here. Based on Airdna info, it's telling me that a single family 4 bed, 2 bath would pull in more revenue versus the 2 units? My thought was to leave them as two separate units but if somebody wanted to rent the whole thing, they could do that as well, as the units are side-by-side.
I just wasn’t sure if I was missing something and wanted to see if anyone else could possibly provide pros and cons that I’m not aware of. One note, I will be managing this STR myself as it’s right across the street from my personal home.
Any advice or suggestions/ feedback would be welcomed and appreciated.

Respectfully-

Jason

Leslie Anne Morris · Answer

Seems like a lot of effort to change something that’s existing. Rent it for awhile as is and see how it does.

Jason Matthews · Answer

Hey Guys,

Thanks for everyone's input. I'm leaning toward what @Leslie Anne Morris suggested and utilize the property how it currently sits now. There is no adjoining door between the two units, however if a larger group wanted to rent both units they are right next door to each other and would have their own space.

I did do research on Airdna and discovered that there weren't many properties similar to mine as far as location and proximity to town, the university and attractions.

Thanks again for everyone's help and input.

JM-

Chris McCormack · Answer

Tax note - if you don't qualify for REPs, the short term rental loophole may benefit you

John Ellis · Answer

I was going to suggest doing an AirDNA search for research.

I would think that two units would bring in more income than one but be more work managing two units over one. Less work in the immediate future because you don't have to retro fit. Outfitting two kitchens and other common areas will be a little bit more upfront but certainly less than the renovation option.

Todd Goedeke · Answer

@Jason Matthews since you are a general contractor why don t you build a duplex with walkout basement, 5 bedroom,4 bath each side? The cost savings of new construction duplex over a single family are: 1. Land cost, 2 units on one lot 2. More economical to add a pool for two units rather than one 3.reduction in cleaning cost with two units side by side. 4. More flexible for larger groups, 10 bedrooms in duplex vs 5 in single family. 5.If not on public water, 2 units can be on same septic and well for cost savings.

Don t put a door between two units . It ruins sense of privacy.

John Underwood · Answer

I would want a SFR over a duplex. Less work and you can charge more for the one and cater to bigger familes/groups.

Peter Holloway · Answer

Have you done any "enemy method" research for both in your immediate area? See how each rent out and get a better idea of pricing. I think you are on the right track with your ideas. I stayed at a place with a door in between units. You just have to be able to operate such that you may only be renting 1 rental at a time.

Duplex vs. Single Family for STR???

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