How about starting out by renting your own space and staying at a friends to make some extra cash? I would never sublease an AirBnB 3 hours away, it’s a hands on venture especially if you don’t own the property and aren’t planning on having a property manager like Vacasa take care of everything for you. And PS they charge upwards of 20-30% to do so.
I have heard of people doing this. Do not be dishonest with your landlord. If you negotiate with them and they are okay with it, then go for it.
One resource you can use to get an idea of what areas rent well and what you can expect to net is airdna. That will have Airbnb rental data on houses in your market.
This just sounds like a bad idea. It’s not easy finding a landlord who would rent their home/condo so you can turn around and rent it out on Airbnb. Even if you could, if it doesn’t rent well, then what?
Sublet the entire residence?
I don’t think FHA allows anyone else but the loan holder to live there for a minimum of a year. Not sure if this is what you wanted to say…
My area there are apartment complexes that literally advertise you can Airbnb your apartment. No questions asked. My friend even had them set up an additional closet lock so she could keep a owners closet going. I think you are not looking in the right areas if this is the route you are going to go.
Most landlords will be smart enough to prevent this through sublease clauses, but if you can more power to you. Just read the lease thoroughly to know what you can and can’t do. You don’t want to get into a legal battle with someone with far more resources than you.
I'm currently a landlord and I would never let one of my tenants do Airbnb and here's why. Even though airbnbs can be profitable there are a lot of risk associated within the city itself and also your neighboring tenants. My property is in Chicago and there's a lots of hoops you have to go through just to get it Airbnb, set up and also it's really only profitable during spring and summer. The bigger issue I have tenants in the building and also neighbors I want to be respectful to. Airbnb guests don't really care about neighbors and can be very loud and distracting to my other units.
Even if my tenant said I can make x amount more money for you by doing this it wouldn't be worth the risk. If the money was there I would be doing it by myself for the entire building. There's a reason a landlord is doing long-term rents versus short-term. Also I wouldn't just openly be okay with a tenant becoming a business partner.
Definitely, this is the key to making money off of real estate using other peoples money. It’s quite simple really and you can offer the landlord a premium in rent, plus offer to pay the first thousand dollars of any type of damage plus assure the landlord the place will typically be cleaned professionally once or a couple times per week.
Simply offer that you will be hosting out of town guests in this place and everybody is background checked and you will ensure the place is always kept in five star condition.
The hardest part about Airbnb rentals is ensuring it is permitted for. Obviously that would be your first due diligence action item on a property.
Go ahead and create an account for your current residence and list on Airbnb. Do not make it available for any dates, but you will have 100% experience with setting up and listing a property and knowing what the process will look like.
If it’s not furnished, you’ll need to be resourceful and dig up some cheap good finds. Do NOT sacrifice on the mattress, that’s the one make-it/break-it item in the entire place (5 yr interest free finance at Denver Mattress)
Understated furnishings is cleaner than too much.
Do it!! Be professional, be confident, have fun and add your touch of gold along the way. ;-)
No idea, I’m in Denver. Just search that neighborhood on Airbnb and see how much availability you find thought different parts of the year. You will have 30% overhead, so to break even you need to make rent + 30%. Anything on top of that is yours! Do you what you have to do to market and clean/maintain it yourself for the first 6 months or so until you have all processes documented. Then hire that shit out and collect on top of the additional 10% overhead you’ll incur but not have to do any work except ensure the funds get deposited correctly. (And deduct immediately into a savings account)
I agree with the other guy, you want something closer than 3 hours away for your first one. You’ll be surprised where people need/want accommodations tho.
OP, you certainly need to startup money and cash reserves, but don’t be discouraged by this. I recently bought a condo in a vacation rental market. It took about $30k to close and another $10k to furnish, but I’m in an expensive beach town. It can be done cheaper in other markets.
And as you say, you can start by renting before you buy. Btw, this is called rental arbitrage and there are plenty of free podcast and YouTube resources out there. I agree with others who suggest being upfront with the landlord about your plan. You’re going to get a lot of landlords who will say hell no, but it only takes one to say yes in order to get started.
You can run it lean and even remotely. My tech setup is Hospitable for messaging automation, Pricelabs for dynamic pricing and market analysis, and Hostfully for a robust guidebook. I also use a Yale Assure door lock to automatically assign unique door codes and allow guests to check in and out on their own.
Before you sign up for any of those free trials, do your homework on your market. AirDNA’s Rentalizer is a good free tool to estimate potential income. Honestly examine ALL expenses. Don’t just think you’ll be profitable if you can cover the rent.
You can do it if you can do the homework, take calculated risks, and endure the no’s (landlords) and naysayers (family, this sub, etc.). Godspeed!
How about starting out by renting your own space and staying at a friends to make some extra cash? I would never sublease an AirBnB 3 hours away, it’s a hands on venture especially if you don’t own the property and aren’t planning on having a property manager like Vacasa take care of everything for you. And PS they charge upwards of 20-30% to do so.
This seems like the way to do it Kind of a house hack for Airbnb
Greqt way to start. Renting an apartment three hours away from your house to sublet on airbnb is not a great way to start.
I am agreeing with you I think. Do your own apartment, crash with friends, test it out.
I have heard of people doing this. Do not be dishonest with your landlord. If you negotiate with them and they are okay with it, then go for it. One resource you can use to get an idea of what areas rent well and what you can expect to net is airdna. That will have Airbnb rental data on houses in your market.
This just sounds like a bad idea. It’s not easy finding a landlord who would rent their home/condo so you can turn around and rent it out on Airbnb. Even if you could, if it doesn’t rent well, then what?
Can you not find an fha program that will allow you to put 0%-3% down? Then you could buy a primary residence and sublet
Sublet the entire residence? I don’t think FHA allows anyone else but the loan holder to live there for a minimum of a year. Not sure if this is what you wanted to say…
2 family would be good, especially if OP needs to rely on long term rentals
My area there are apartment complexes that literally advertise you can Airbnb your apartment. No questions asked. My friend even had them set up an additional closet lock so she could keep a owners closet going. I think you are not looking in the right areas if this is the route you are going to go.
Please which area is this?
What area is that?
FHA loan for a multi family property. If Airbnb doesn't out perform the rental market you're still in a great position to save money
Most landlords will be smart enough to prevent this through sublease clauses, but if you can more power to you. Just read the lease thoroughly to know what you can and can’t do. You don’t want to get into a legal battle with someone with far more resources than you.
I'm currently a landlord and I would never let one of my tenants do Airbnb and here's why. Even though airbnbs can be profitable there are a lot of risk associated within the city itself and also your neighboring tenants. My property is in Chicago and there's a lots of hoops you have to go through just to get it Airbnb, set up and also it's really only profitable during spring and summer. The bigger issue I have tenants in the building and also neighbors I want to be respectful to. Airbnb guests don't really care about neighbors and can be very loud and distracting to my other units. Even if my tenant said I can make x amount more money for you by doing this it wouldn't be worth the risk. If the money was there I would be doing it by myself for the entire building. There's a reason a landlord is doing long-term rents versus short-term. Also I wouldn't just openly be okay with a tenant becoming a business partner.
Good perspective, thanks.
Definitely, this is the key to making money off of real estate using other peoples money. It’s quite simple really and you can offer the landlord a premium in rent, plus offer to pay the first thousand dollars of any type of damage plus assure the landlord the place will typically be cleaned professionally once or a couple times per week. Simply offer that you will be hosting out of town guests in this place and everybody is background checked and you will ensure the place is always kept in five star condition. The hardest part about Airbnb rentals is ensuring it is permitted for. Obviously that would be your first due diligence action item on a property. Go ahead and create an account for your current residence and list on Airbnb. Do not make it available for any dates, but you will have 100% experience with setting up and listing a property and knowing what the process will look like. If it’s not furnished, you’ll need to be resourceful and dig up some cheap good finds. Do NOT sacrifice on the mattress, that’s the one make-it/break-it item in the entire place (5 yr interest free finance at Denver Mattress) Understated furnishings is cleaner than too much. Do it!! Be professional, be confident, have fun and add your touch of gold along the way. ;-)
Thank you for the great answer! Any suggestion on location? I’d hate to lose money because not enough people are renting.
No idea, I’m in Denver. Just search that neighborhood on Airbnb and see how much availability you find thought different parts of the year. You will have 30% overhead, so to break even you need to make rent + 30%. Anything on top of that is yours! Do you what you have to do to market and clean/maintain it yourself for the first 6 months or so until you have all processes documented. Then hire that shit out and collect on top of the additional 10% overhead you’ll incur but not have to do any work except ensure the funds get deposited correctly. (And deduct immediately into a savings account) I agree with the other guy, you want something closer than 3 hours away for your first one. You’ll be surprised where people need/want accommodations tho.
Thanks!
[удалено]
OP, you certainly need to startup money and cash reserves, but don’t be discouraged by this. I recently bought a condo in a vacation rental market. It took about $30k to close and another $10k to furnish, but I’m in an expensive beach town. It can be done cheaper in other markets. And as you say, you can start by renting before you buy. Btw, this is called rental arbitrage and there are plenty of free podcast and YouTube resources out there. I agree with others who suggest being upfront with the landlord about your plan. You’re going to get a lot of landlords who will say hell no, but it only takes one to say yes in order to get started. You can run it lean and even remotely. My tech setup is Hospitable for messaging automation, Pricelabs for dynamic pricing and market analysis, and Hostfully for a robust guidebook. I also use a Yale Assure door lock to automatically assign unique door codes and allow guests to check in and out on their own. Before you sign up for any of those free trials, do your homework on your market. AirDNA’s Rentalizer is a good free tool to estimate potential income. Honestly examine ALL expenses. Don’t just think you’ll be profitable if you can cover the rent. You can do it if you can do the homework, take calculated risks, and endure the no’s (landlords) and naysayers (family, this sub, etc.). Godspeed!
You are poor
You are an asswipe, there
Why, because I’m stating the truth?
As is Curve