Rental Property Investor · Boston, MA · Member since 2017 · 13 posts · 0 votes
Hello all! Newbie here still studying and hoping to get started in REI when I move to SoCal in Jan 2018. I'm mainly looking into house hacking when I get there to get some cashflow before I start getting into rentals and other areas of REI. Is this a good way to start in or would wholesale be the way to go? Also, is there a legal way to practice wholesale in CA without a license? Thanks!
is a great connection to make. He is an agent in San Diego that I work with. He can advise you on house hacking and answer any questions that you have on the market.
@Ben Leybovich The luxury strategy does work. I did it in a similar way in a prior living arrangement and it can be pretty awesome. Question would be the best way to offset the two biggest risks. First is a change in policy at the local level either "outlawing" these rentals, making them > 30 days, or taxing through the roof. Second (easier to avoid) would be the increased competitiveness and drop in price due to continued upticks of supply in the area. Not a big risk if you're a beach house or in a less touristy town but I've seen supply shoot up fast in even the best of neighborhoods. Cool strategy.
1. Taxation and further regs are coming - we should all expect it. The money is good, so paying more taxes should not shut down the strategy. Expect it.
2. I would work with 30-day, if it came to it. Or sell the house and move someplace that allows things.
3. If they outlaw AirBnB then there is no difference between US and Venezuela, in which case we got bigger issues :) In some locals this is already the case...don't want to live there, and won't buy there.
4. The thing is, most of the supply is investors. They have dedicated rentals which come with a lot of overhead. House hack represents a huge advantage in this respect. I'll always be able to compete. I am not crazy in love with the AirBnB model as a stand-alone. But, in a Luxury House Hack it's brilliant.
Thoughts, Scott?
I think most of the 30 day rules even in the strictest areas ( NYC, Santa Monica ) home owners are excempt if living on same property. That would be a personal guest legally speaking. Versus 100% abesentee owners are totally restricted and 30 day rule applies. Good luck!