I am loving all of the input and ideas! It's great to bounce my thoughts off this community and get such great feedback!
The property is in Flagstaff. I have a desire to move out of state this year so I do not plan on continuing to house hack in it. The 1/1 is upstairs and 3/1 downstairs. Very good privacy between the two, but there are some shared spaces; driveway, backyard, laundry in the garage. Refinanced less than 6 months ago and locked in a great interest rate and reduced the mortgage, but increased the loan amount. Recoup time for the closing cost is probably 2 years. Upgraded the kitchen, master bath, backyard, new flooring and windows in the 1/1, which were all DIY except for the irrigation in the yard. I am expecting these upgrades have increased the value, so I am not beating myself up over the increase in loan amount. To be honest, I do not have a firm grasp on the numbers in the calculator yet, but am working hard to study. I am an engineer, but I never learned this type of math :). Still pretty new in my real estate journey.
$1600 is probably conservative rent for the 3/2, but since the property is shared I didn't think that a stand alone 3/2 would be an exact comp. Also, the third bedroom is off of the master without direct access from the main living area, so it is not a pure bedroom (although it has a built in closet and a window so it technically counts).
When the 1/1 was run as short term rental in May, June, and July of 2019 (pre-covid), it brought in an average of about $1500, with June being the best at almost $2400. Since it was live-in, costs were kept very low. In town there are limited STR management companies and I would expect to pay 30% in fees. I have a friend that runs a company in Phoenix who has interest in expanding to Flagstaff and is considering partnering with me. I suggested he could occupy the 1/1 for a month or two while he established a team and ran the 3/2, then move out and offer both as STR either together or separate.
There is an "jacuzzi room", which may sound luxurious but it's really just an unused space at the moment since the hot tub is very old and I am not convinced it actually works. Been wanting to renovate that and turn it into a sunroom, but prioritized other renovations first (only have so much time and energy when working a full time job and doing a live in DIY house hack). The 1/1 has paid for pretty much all of the improvements, but I still pay my own mortgage. If I were to do STR, I would consider getting a new hot tub or getting the old one in working order, but I am concerned of the risk it adds to the property from all the moisture since it's indoors.
Any recommendations for STR managers or property managers in Flagstaff? Also contractors or spa specialists would be welcome!
Thanks!
