Based on your results from our Real Estate Investor Quiz, we believe Short or Long Term Rentals in a Condo or a Short Term Rental Sandwich Condo may be the right investment options for you.

Because you have at least $40K to invest and don’t want to work with contractors, starting your investing journey with a condo is a good first step. You have the option of renting out the condo on either a short term or long term basis. Analyze your investment property before you buy using our extensive toolkit.

If you’re not ready for homeownership but want the benefits of a short-term rental, you may want to look into a Short Term Rental Sandwich Condo.

Short Term Rental

A short term rental (STR) is a property or part of a property leased out on a short term platform, like Airbnb or VRBO.  Short term rental stays are 30 days or fewer.  It is much more management intensive than a long term rental but can earn considerably more income.  Property managers and management companies specialize in this area, which can make it less labor-intensive.

Some short term rental owners opt to rent out a room or suite in their house while still living in the property. Watch this video to see how a Denver investor converted his basement suite into a short term rental, and subscribe to our YouTube channel for more content.

Pros and Cons of a Short Term Rental

Pros of a Short Term Rental

Cons of a Short Term Rentals

Long Term Rental in a Condo

This is the purchase of a residential property to be rented out to tenants, usually on a 12-month lease term.  This is how most new landlords get started.  You may hire out all of the property management functions, but in many cases, you will do many of them on your own.  There are smaller down payment requirements for homes and condos than for larger rental buildings.  The purchase process and financing process is very similar to what you experienced buying the home you live in now.  It’s a great way for beginners to get started.

Browse our Deal Analyses to get real data on investment properties our clients are renting out.

Pros and Cons of Long Term Rentals

Long term rentals are a good starting point for investors who want to get into real estate.  While less work than a short term rental, they still require a time investment, especially to get started.

Pros of Long Term Rentals

Cons of Long Term Rentals

Short Term Rental Sandwich Condo

Not yet ready for home ownership? In a Short Term Rental Sandwich Condo, you sign a long term lease on a condo (ideally for 24+ months), and then lease out the property on an short term basis. You only need to pay for the furniture and furnishings. The amount of equity you’ll need is around $10,000 and up. Your typical time commitment to get started is at least 40 hours to find the right property.

Check out our interview with AirDNA founder Scott Shatford to learn how he started investing using this method.

Pros and Cons of an STR Sandwich Condo

Pros of STR Sandwich Condo

Cons of STR Sandwich Condo

What’s Next?

Learn more about how to effectively manage a short term or long term property with our exclusive online courses. These courses are currently on sale for a limited time.

Find out how to set up, advertise, and manage your short term rental with Step by Step Short Term Rentals.

Get all of the tips and tools to run implement a long term rental strategy with How to Self-Manage Your Rental on Autopilot.

Analyze your rental portfolio using our Property Llama software. Find out how much money you need to start investing, see how you can build your portfolio, and get real time analysis on your properties. Sign up for your free account to get started.