Loved our co-sleeper. We used it (or even just the mattress) as a portable crib, too. Once the baby outgrows the bassinet part (when they can pull up or sit up), the floor drops and it is a play yard that works for sleeping, too. We bought the organic mattress to go with it, because I felt like the thing pad that came with it was uncomfortable. Still, our DS actually started refusing the cosleeper. Here's how it went
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Months 0-4: co-sleeper in room, baby in co-sleeper from 7pm to around 3-5am, baby in our bed after that
Months 4-6: co-sleeper in our room, baby refuses co-sleeper, in our bed most of the night
Months 6-7: co-sleeper in nursery, baby in co-sleeper from 7-10pm, in our bed after that
Months 7-8 (now!): crib with a comfy mattress in nursery, baby in crib the whole night
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I still can't tell. Was it the soft mattress that did it? The change of scenary that did it? (He cried for less than 5 minutes and now finally falls asleep all on his own) Or did DS just start sleeping better becaue he was ready? No matter the reason, I'm still grateful for the co-sleeper. I loved having him that close. I fell asleep every night watching him breath, and I still had room to sprawl out in bed. Plus, it wouldn't have been safe to leave him in our bed before I was in there with him (and I can't go to bed at 7pm!), so I really liked not having to move him from the nursery to our room in the early days. Now, we bring the mattress with us when we're over at a friend's house... and he'll fall asleep right on the co-sleeper mattress (it smells familiar!)
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I would suggest that if you do it, make sure to get the regular arms reach or the mini one that converts to a portable play yard... we get lots more use out of it that way, and probably could have used it all the way up to a toddler bed if we hadn't been gifted a hand me down crib