Am on my second house hack the first one I was in for about 2 years. I rented it for 2,750 per month a large house plus guest house and was able to dived a 3rd unit and still had lots of room for me and my family. The guest house brings in about 2,200 per month on Airbnb and the studio that I created makes about 2k. So I was able to live rent and bill free for 2 years. Now it was time for an upgrade so I found a larger house that rents for 4,500 I was able to get 2k from a normal renter for the part of the house that I lived in. So now am at only 2500 per month the large house allows for a separate rental space for airbnd that will bring in about 2k so my net will be 500 per month I live thE house of my dreams. I’ve been growing my Airbnb business at a rate of 1 unit every 2 to 3 months and I don’t own any of them. We are sitting on 19 units right now and yes the headaches will drive some people out of the game. But if you are willing to put in the work the cash flow will keep you in the game and happy the great thing is that you can do this in any market with some work.
So are you doing this with or without the consent of the home owner? I ask because I'm interested in learning more so that I can do the same thing. I've heard of people doing this with an apartment too. Renting out the entire apartment but I'm wondering are they doing this without letting the complex know.
Anyone who tries to AirBnB any house they rent from me will be notified very quickly of an imminent eviction.
every owner we work with knows what we do. We are upfront and we have lots of references from other owners now that make it a bit easier to get owners to get on board.
Transparency is key, not all landlords are comfortable with this arrangement but many see the advantages of working with professionals who are able to maintain the properties at higher standards than with long term leases.
sounds great as long as there is no problem with neighbors and landlord, right?
In my leases, I put that there can be no subletting of any kind.
Is the home insured for vacation rentals? Are you complying with zoning laws? Are you paying taxes and fees in accordance with the law?
If you are in full compliance with the law, insurance, and owner knowledge, then keep on trucking.
It smells fishy to me. Then again, there are a lot of naive Landlords in the world.
Great idea. It sounds like a form of master leasing. As @Andrew Lawson pointed out, getting permission is pretty important. (My wife and I did this in apartment buildings almost five years ago and we were kicked out of some of them.) I think there are a lot of landlords who would be excited to get a bit above market rent and let you do what you want. I know some people who are doing that with Airbnb here in Denver. (My wife and I did this years ago, which started our trajectory into real estate.)
The cashflow is great, but it's also only cash flow. You're missing out on other money-making benefits of actually owning the real estate. I'd be putting aside a good portion of that cash flow into a downpayment fund to get into investing.
Thanks for sharing. Good story.
We are fully insured, Airbnb collects and submits all the taxes required in my county. Upto this point their are no zoning laws making what we are doing wrong this may change in the future who knows.
AirBNB actually offers this as an option. If you want to be a host, but do not own anything, you can still do that and make money.
Homeowners who don't want to have hosting duties can offer their unit(s), and a Host can opt to take it on.
It is a great matchmaking opportunity for homeowners who have units, but don't want to do the work, and for a Host who doesn't mind the work, but doesn't have the inventory to both profit.
Anyway, I just thought I would throw that out there since there is a legal, and inviting way to do what you are talking about without getting in trouble with a landlord OR take on any added leasing debt liability.