Multigenerational Home - STR and part-time vacation home

[Chad Price]

Hello,

I am considering the idea of purchasing a multigenerational home so my wife and I can use it as a part-time vacation home in which we would use the in-law quarters with separation from the main house via locked door.  The remainder of the house we would do short term or mid-term rentals.  

Just curious, anyone here done this type of thing before?  Pros/Cons?

Thanks,

Chad

[James Carlson]

@Chad Price

Yeah, you're basically talking about house-hacking. Ton of our clients do it in Denver and Colorado Springs (and a few in the mountains). There are no real different pros or cons in what you describe than there are in running a typical short-term rental -- setting up systems, getting necessary permits, etc. 

The only downside I can see is that you will pay for a home with two rentable units but only rent one space. Could you rent the in-law suite on Airbnb while you're not there? No reason to leave STR money on the table unless you like the idea of having it ready at all times in case you want to visit.

Also, just be sure your local laws allow for such a thing. There are the vacation rental laws for one, but then also local zoning laws on whether one or two units can be rented. We see some people here who buy a home zoned R-1 (in the Springs) or SU (single unit in Denver) who rent a separate space while they live there and think they can rent both spaces when they leave, but the zoning doesn't allow for it. 

Anyway, good luck!