We're getting ready to close on a 4 plex - units 3-6 for us. All 4 units are currently rented but we intend to end the month to month agreement with one of the tenants due to cleanliness issues. After that we're planning to spend $5k and and one month freshening it up. Toying with the idea of turning it into an air bnb property and keeping the other 3 units LTR to keep stability. The income from the 3 units covers all expenses with a little left over so anything I make on the STR would be gravy. Market rent on it long term ~ $850-900. I'd need to rent it 7-8 days a month at short term rates to break even.
I *think* its marketable being 5 minutes from our growing downtown where hotels are often sold out. Any reasons not to give it a shot?
I say go for it. Check out all the competing properties in Des Moines, and make sure you are priced at or slightly below their prices. Offer a little bit of extras - like bottled water and single-serve portable snacks such as granola bars, and watch your rental fill up.
Or, if it doesn't work out, you can always rent it out as a long term deal. I see minimal setup expenses - furnishing it, and maximum potential. I would love to hear what you do with this.
@Ashly B. very cool! I am interested to hear in a few months how this works out. I've toyed with that idea in Des Moines as well but have not made the jump. I've struggled wondering where a desirable location would be for a tourist or weekend visitor would be. Maybe downtown, south of grand, beaverdale?
Our place is across from Union Park. I'm not sure its a tourist destination in itself but its less than 2 miles from downtown, close to the bike path and river, a mile from Grand View and 3 from Drake so maybe even get some families for college visits, etc. I'll definitely update how it goes if that's the route we decide to take.
@Ashly B. Did it work out? We're thinking about an STR ourselves.
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