Airbnb subleasing San Antonio?

Question

Hello everyone! I keep hearing about apartment subleasing for Airbnb rentals. Anyone have experience with that??

The benefits seems enticing. Having almost a guaranteed tenant if you will, one investor helping another. Who on here would be open to something like that?? Pros and cons??

John Underwood · Answer

Bad idea to rent something you don't own. You have no control and owner can take back their property after you've spent time and money building a business off their asset.

Buy you properties and then Vrbo / Airbnb them.

Don Konipol · Answer

@Adam Noble

One must define whether they want an investment, a business, or a combination of both.

Owning a residential property and renting to long term tenants is an investment.  Leasing a property and then using it as a str property is a business, with all the time commitments, involvement, risks and reward inherent in any business.  Owning a property and using it as a StR is BOTH an investment and a business; it is a business with a real estate component, but one that can fairly easily be turned into an investment only by switching from StR to traditional 12-36 month leases.

Mike F. · Answer

@Ken Latchers @Adam Noble

In a past life, my job was to go into denied areas to find Al Qaida training camps.  Some of the tactics apply to AirBnb arbitrage.

In the long run, Ken is right.  Even if you are successful, you're not gaining assets for risk exposure.  I've conducted two experiments over the last year with mixed results in order to test a couple of things.

Here's my findings,

1.  Establish a commercial lease- 5 year that is win-win for both you and the landlord.  I have one of these in place and it is working out well.  Have outs for both you and the landlord.  Just like any partnership, define the exit strategy.  In this case, we actually found that we both like working together.  So, this contract may lead to future deals with each other (this landlord is also an agent).

2.  Use Arbitrage to stress test your business model- number of rooms, location, etc

3.  Plan for 9 months to recoup initial costs

4.  Only use it as a temporary tactic.  Each one of my arbitrage units has a job- pay for cleaners for all my properties, pay for software for all my properties, pay down other mortgages.  In my case, the initial investment was money that I had in excess to experiment with.

-Mike

Todd Goedeke · Answer

Get advice from seasoned Master lease/ triple net lease business owners and lessors. For example, leases will be for 15-20 years, not three yrs as the person from Pennsylvania alluded to.

Todd Goedeke · Answer

Don t let negative comments from those people who have never had success with STVR deter you.

Arbitrage ,commercial master lease works great with duplexes. As evidence there are thousands of retirement investors using SDIRA and Solo 401k leasing their properties to STVR companies.

Adam Noble · Answer

@Don Konipol I appreciate how you worded that, thanks for the input sir.

Adam Noble · Answer

I just moved to San Antonio from California and am considering doing a house hack for my 1st deal. Prices out here are rather attractive.

Adam Noble · Answer

@James Michael Few temporary would have been exactly what I had planned if I chose that route. Roll those profits into creating my own portfolio.

Adam Noble · Answer

@Will Pritchett I thought it would be an interesting topic. I wanted to see what seasoned investors thought about this.

Airbnb subleasing San Antonio?

Most Popular Reply