All Forum Posts by: Oladimeji Sonibare
Oladimeji Sonibare has started 14 posts and replied 68 times.
Post: Increasing value of multifamily properties
- Posts 68
- Votes 38
Hey, All.
I'm looking to purchase a mid-sized multifamily property with a partner. He's providing the bulk of the funding; I'm analyzing the deal. Where I'm stuck is figuring out how to add value. I understand that MF's are priced according to their NOI. What are some creative ways to increase cash flow/reduce expenses, in your experience?
Sb: These properties already come with washer/dryer sets and if you know of a way to find MF deals for LESS instead, you’re also welcome to respond.
Thanks a lot!
Post: Can I STR with an apartment that I don’t own?
- Posts 68
- Votes 38
Quote from @Chad McMahan:
Quote from @Samson Animashaun:
@Chad McMahan What are those possible liability(ies) on the landlord. An AirBnB Super host approached me today for my 3bedroom/ 2bathroom in NJ today and I am weighing my options.
Hi Samson.
There are quite a few risks to the landlord. A few examples that have been surfacing regularly across many states- Crazy late night parties from STR tenants... the landlord is liable and can be fined or worse, depending on the location and severity. Damage to the property... the landlord is likely liable, depending on the lease contract. MANY other risks as well.
While I agree that the landlord could potentially be on the hook for these things, I also feel like these issues can easily be addressed within the terms of our agreement. Ex: “No parties/loud music”
Post: Can I STR with an apartment that I don’t own?
- Posts 68
- Votes 38
Hey, Michael. Thanks for the reply. I’m leaning more towards arbitrage for a few reasons:
1. Less money up front. All it takes is one month’s rent and security, as opposed to a down payment.
2. My potential exit is a lot simpler/less messy. Assuming my LL was open to signing leases for as short as 6 months, I can use this model to work the peak seasons, exclusively. Once is over, my lease is up and I sign another one the following year. Compare that with having to worry about a mortgage year-round.
Post: Can I STR with an apartment that I don’t own?
- Posts 68
- Votes 38
Quote from @Chad McMahan:
Quote from @Oladimeji Sonibare:
Hello!
Is it possible to list an apartment that I don’t own on AIRBNB, VRBO, etc? How can I use an apartment that I’m renting to create extra income?
All of this assumes consent from my landlord. I just need to know if I’d be breaking any laws. Thanks for the help!
Hi Oladimeji.
Hah! As long as the landlord signs off and it's allowed by property, HOA, subdivision, county, town and state, then go for it! The funny thing is, the liability is mainly on the landlord- so get permission in writing.
@Chad McMahan Fantastic. I’ll keep that in mind. Thanks a lot, Chad.
Post: Can I STR with an apartment that I don’t own?
- Posts 68
- Votes 38
Quote from @Bryant Xavier:
@Oladimeji Sonibare
I started this exact way. It's not equity, but it's a start for sure. My advice here would be to check with the apartments lease and make sure nothing prohibits STR.
I saw another comment you made regarding 30 day rentals. I’ve seen a huge increase in 30+ day rentals in my market (College Station, Tx.) From travel nurses, to displaced students between leases, and most often folks who are closing on a property and their appraisals and funding is taking forever so they need a place for a few weeks/ sometimes months.
If you’re looking for 30+ day rentals a good way to find this is your local travel nurse Facebook page. Most cities have them and it just takes 1 connection. When I get a travel nurse to stay they usually refer other travel nurses needing 30+ day accommodations.
Good luck!
Wow. I hadn’t even considered travel nurses; that makes perfect sense. I’ll look into it tonight. Thanks a ton, man. Beast of luck to you too.
Post: Can I STR with an apartment that I don’t own?
- Posts 68
- Votes 38
Quote from @Paul Camuto:
good luck finding a landlord willing to agree to that. essentially it is subletting.
Post: LET'S TALK ABOUT: Cash-flow optimization
- Posts 68
- Votes 38
The rent increase was smart and pretty bold (in a good way, of course), but it would have only worked if you had acquired the property with rents well below market, no? Otherwise, you’d have simply ended up with vacancies. Without repairs, something in the market must have justified the increase.
The insurance thing was amazing. Hats off to you, Sir.
Post: Can I STR with an apartment that I don’t own?
- Posts 68
- Votes 38
Quote from @Paul Mac:
@Oladimeji Sonibare I live in Florida now and I was a real estate broker in NYC for 11 years.
I did airbnb in NYC. I managed 5 properties all near times square, rockefeller, and hells kitchen. At one point it was legal and then it became illegal. I was doing was very short term(3 days and up). Then NYC came up with an anti airbnb task force and then started implementing fines. when the risk got too high i got out. BUT!!!!! if my memory serves me correctly, you can still do short term in NYC if the term of the stay is above 30 days(I believe).... I've been living in florida now for 5 years so if my information is not current please forgive me.
Nope. You’re actually spot-on. I discussed it with a lawyer yesterday and you’re only confirming what he told me. Thanks. I’m not exactly sure how to find a group willing to stay for 30+ days. I guess visiting executives? If I can find the kind of property to market to them, perhaps that could work. What do you think?
Post: Can I STR with an apartment that I don’t own?
- Posts 68
- Votes 38
Thanks, @Conner Olsen.
I live in NYC and intended on starting here, but they've virtually outlawed it. It's only legal if you're on-property during the rental period and the renter needs to have access to the entire space. Meaning you can't lock yourself in a room and rent out the rest. It's wild, actually.
What I'm considering now is starting in NJ or another one of the neighboring states/cities. I'll keep looking. Thanks for the heads' up.
Post: Can I STR with an apartment that I don’t own?
- Posts 68
- Votes 38
Quote from @Paul Mac:
the answer is yes.... its call rental arbitrage. many people do it with the expressed consent of the property owner. just make sure the owner is ok and the property you rent in is ok with it as well...
Thanks, Paul. I’m familiar with arbitrage, I was just worried the rules would be different somehow when it came to short-term rentals as opposed to longterm tenants. @Paul Mac