permit/tax issues with an STR owned as a lease option

[Sean Wilt]

We are considering picking up our 3rd STR via a LO as a way to get a property quickly vs. waiting to accumuluate the 20% down payment required to finance.

My questions is, since I would not be the owner on the deed, would I have issues with obtaining a business license to operate a STR and pay the hotel/motel and sales taxes or would I need to involve the owner of the property?

[Eric A.]

@Sean Wilt you won’t have any issues at all. After all, major retail stores and other businesses do it all the time. Lease space and pay their taxes, utilities, etc. The rental arbitrage model can be a lucrative one but make sure the numbers are “the numbers”. If you are in charge of minor maintenance issues make sure you budget for these items. Good luck!