Subletting passive income idea

[Ali Daiy]

I was thinking of an idea to make passive income from real estate without buying. Going to bigger cities like Los Angeles, New York, Miami, Chicago, Dallas, etc. Finding landlords who own single family properties w/ livable basement & attics near large universities, that allow me to sublet. I let them know that I'm an investor and workout a deal with them to sublet to my own tenants, Tell them that I will handle any damages that come to the property and pay 5% over the rent price

THE IDEA

I rent from the land lord, convert the attic or basement to a suitable bedroom type area, and rent out to at least 1 extra person. Doing this, rent would be cheaper for the college sub tenants, and i make passive income. Depending on the cost in the area that I am in, I could pay for utilities and market that to sub-tenants.

Example scenario

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Rent: $2,800

My rent payment to landlord + 5%($140) : $2,940

# of bedrooms: 4 Bedrooms + Basement & Attic

Sub-let out to 6 tenants x $575/month @ 1 year lease

Profit = $3,450 (Sublet rent income) - $2,940 (Rent to landlord, +5%) =$510/profit

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If this works, I can generate good passive income. I know there might be a few problems to this idea, but tell me what you think!