All Forum Posts by: Steven W.

Look up a Title 1 Renovation Loan. I use them quite regularly. They are great because you don't need an appraisal or anything to get the cash. (Usually around $25K). They are also over 15 or 20 years so the payment is low.

North Carolina has a standard lease agreement form that is very robust. I recommend using it and making tweaks as necessary.

You could do a title 1 renovation loan. You don't need equity in the home to do this and can typically borrow up to 25K. Most banks will match another 25K if you need the money. You will need to provide proof that you are going to do repairs and they will perform an inspection once complete.

Have you looked at doing an exterior replacement instead? I just replaced 3,000 sqft of siding for new 50 year James Hardie driver cement. The cost included removing previous siding, installing OSB, installing tyvek, and then the new siding on top. Those prices seem high imo.

@Rishi B. Thanks that is very sound advice. I would not want to be responsible for paying for an unhappy tenant because of an unavoidable issue. I already have a maintenance team in place for my traditional rentals, but I would think this is a different situation. I'm sure there are plenty of businesses out there that make a profit off this, as there is a niche for everything just about. 

@Derrick Aragon Yes I went overbudget on my renovation due to some unforeseen issues that the inspector did not catch. I was hoping to recover my costs more quickly by being able to raise the rent. Typical rental in this are for the size of home is around $1,500-$1,600 and I have mine listed for $1,750 since it is completely renovated. Unfortunately I've only had a few bites so far. 

The exterior reno is also not 100% complete so I can't take any new exterior pics which would help a lot. 

Here is an article that discusses it in more detail for Charlotte, NC. 

https://www.charlotteagenda.com/76722/airbnb-charl...

@Jon Latorre One of the benefits of LTR is that I don't have to deal with the time of leasing my property on a consistent basis. If this was my full-time job I might think differently but currently rentals are part-time for me. 

@John D. I don't really consider this property a vacation home. If I end up going through with the contract I would anticipate that the property would be used mainly by those who are visiting Charlotte for work or a special event.

@David Faulkner I disagree on whether I'm using the most profitable business model with LTRs. I currently have the property up for an aggressive rent price and I'm not getting near enough inquiries. If this deal falls through I probably will drop the rent amount. Also I consider my time as a cost so if I am spending more money on rentals than I am on my full-time job I am losing money (for now).

@Lee Ripma Thanks I agree! Hopefully it will work out as a win win. 

@Ryne V. It's not worth my time to leave my full-time job to do this. 

@Myka Artis - Thanks for your input. Yea renting out my own space is no issue. Renting out a space that somebody is leased under causes me some concern. 

@Account Closed - I appreciate the input. Are there any legal/insurance issues with doing this? The Airbnb investor says he would cover all the insurance requirements, so is my normal fire/rental policy still good?

@Jake Knight @Jeff B. The investor has 5 other properties he is currently doing this with and has provided me with the references. Additionally, he is insured and will cover the liability. 

You are correct that I wouldn't need a property manager which is a great deal for me since I still work a full-time corporate job. I do like the idea of a 10% markup. I also would probably want two months of deposit up-front.

When I spoke to the investor, he said he would cover all the expenses including getting the house fully furnished, installing a remote key lock system, and the insurance. I would just need to screen him like a traditional tenant (credit check, background check) and also talk with his references. 

He did mention that he is careful about who he rents to. He has over 250 5-star reviews and is on the path of becoming a Superhost. 

My concern is that situations like this are usually "too good to be true."

Would love more input!!

Biggerpockets Community,

I'm hoping you can help me. I am finalizing the renovation of a property and looking to find a renter. I've always rented long-term and have no experience in short-term rentals. I recently received a request from a prospective renter who wants to return lease the property as an Airbnb investment. 

The property is in an A+ area so I can understand the desire to use as an Airbnb. A lot of people in this area will rent out their properties at certain times of the year (PGA tournaments) for additional income. 

The investor will handle everything with Airbnb and would insure the property for any damage. I would be responsible for collecting my monthly rent. It will be up to the investor to rent out the property and receive enough additional income to justify the rent price.

Does anybody have experience with this method? If so is the risk worth the reward from an owner's perspective? As a FYI the property is in North Carolina.