Denver, CO · Member since 2017 · 10 posts · 1 vote
Wanted to introduce myself as a new member from Denver. Have an accounting and finance background along with a law degree, but no real estate experience, yet. Looking to build an ADU in Denver for short term rentals. Excited about all the educational resources available on BP.
Welcome to BP and awesome idea! I love ADUs (or mother-in-law suites or basement apartments or carriage houses ...) Under Denver's new Airbnb law, they are the only way you can do a short-term rental full-time. (Damn primary residence rule and all.)
I know a few builders specializing in ADUs. Feel free to PM me. Congrats on being in one of the few small pockets of Denver that allows for new-build ADUs. That's great.
Airdna isn't a bad product, for sure, but just like Airbnb's smart pricing, I don't fully trust it. It's all an average, and if you do above average work, then you will be pricing too low. I mean a 2br/1ba condo in Cap Hill totally remodeled inside, with an exposed brick wall, and tastefully designed with Room & Board is just not going to rent the same as a 2br/1ba condo in Cap Hill that's crap inside and has been stuffed with whatever second-hand Nebraska Furniture Mart couch you could find.
I'd always do your own research. Act as a guest on Airbnb, find places the same size as yours in the same area with similar furnishings that are getting booked. Whatever that price is, undercut it for a few stays to build up some positive reviews and then start raising your price.
I agree with @Matt M. about the lower turnover of a traveling nurse. On the spectrum of money-making -- between long-term renting and Airbnb-style short-term renting -- that 3-6 month furnished rental is in the middle, both in terms of price and work. My wife and I own two furnished rentals and do pretty well with them, so that's always a fall-back if Airbnb becomes tedious. (Though, still, if you're in the right area in Denver -- and no ADU-allowable area is bad -- you should be able to hire a property manager specializing in Airbnb and still make a better profit.)
Hi Mart, welcome to BP. There are lots of houses in Denver with tvmhe right zoning for ADU's. From what I have seen, they should make you between 900 and 1000 dolloars monthly incom3 in addition to what you currently have.
Is your home properly zoned for an ADU? Have you ran the numbers? They cost at least $125k to start.
Thanks Matt M. -- yes the home is zoned for an ADU. Have not run full numbers yet but am estimating it could rent short term for about $150 a night in our area of Denver. Any recommendations on a way to get a firmer estimate? Have seen the site AirDNA but have not yet pulled the trigger on paying for their data. Also if anyone has any contractor/architect referrals for an ADU in Denver they would be greatly appreciated.
You might reach out to @Dorothy Ma on this site. She does design/build. The gal I know that built one rented it furnished to traveling nurses to avoid dealing with the turnover, etc.
Welcome to BP and awesome idea! I love ADUs (or mother-in-law suites or basement apartments or carriage houses ...) Under Denver's new Airbnb law, they are the only way you can do a short-term rental full-time. (Damn primary residence rule and all.)
I know a few builders specializing in ADUs. Feel free to PM me. Congrats on being in one of the few small pockets of Denver that allows for new-build ADUs. That's great.
Airdna isn't a bad product, for sure, but just like Airbnb's smart pricing, I don't fully trust it. It's all an average, and if you do above average work, then you will be pricing too low. I mean a 2br/1ba condo in Cap Hill totally remodeled inside, with an exposed brick wall, and tastefully designed with Room & Board is just not going to rent the same as a 2br/1ba condo in Cap Hill that's crap inside and has been stuffed with whatever second-hand Nebraska Furniture Mart couch you could find.
I'd always do your own research. Act as a guest on Airbnb, find places the same size as yours in the same area with similar furnishings that are getting booked. Whatever that price is, undercut it for a few stays to build up some positive reviews and then start raising your price.
I agree with @Matt M. about the lower turnover of a traveling nurse. On the spectrum of money-making -- between long-term renting and Airbnb-style short-term renting -- that 3-6 month furnished rental is in the middle, both in terms of price and work. My wife and I own two furnished rentals and do pretty well with them, so that's always a fall-back if Airbnb becomes tedious. (Though, still, if you're in the right area in Denver -- and no ADU-allowable area is bad -- you should be able to hire a property manager specializing in Airbnb and still make a better profit.)