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Updated over 3 years ago on . Most recent reply

Account Closed
  • Wholesaler
  • San Diego, ca
12
Votes |
48
Posts

Dump it for the Mello Roos, are new Airbnbs too risky?

Account Closed
  • Wholesaler
  • San Diego, ca
Posted

Hi BP forum wanted to get seasoned investors inputs on this. Should we dump it because of the undisclosed melloroos? Are airbnbs too risky right now anyway? 

We are under contract for a property in Coachella. we are at the end of our contingency period and we found on the title report that we have mello Roos on this property. Approx $300 per mo extra on top of the mortgage and ins/prop taxes. The listing agent did not list it on the MLS. Did not have any disclosures for it. I feel like the agent should disclose Something this important? We usually have a no melloroos and no hoa rule when investing. Did the agent break any rules?

As a side bar- we are locked into a good rate (got a good deal from a friend who is in wholesale lending). It does cut into the profits but the property is worth $530K+, we got it under contract for $515K. It's a 5 bedroom, 2300 sq ft house, 3 blocks from polo club. We plan to build a pool and if we STR rent it we can make a decent return. We could go long term and make an ok return as well.

Like everywhere else I’m reading that Airbnbs bookings are going to their prior to Covid cycles. We are entering into Low season in the desert and revenue and bookings are dropping in the area. 

So long winded but:

1) did the listing agent break any rules? 
2) with the melloroos included - is this still a good deal? Any local Coachella investors that can give me some inputs on this? 

Thank you! 
Lena

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