Help found deal w/ 100,000 equity/won’t cashflw if rental w loan

[Sheila Arca]

I found a great property in a great area, at a great price. Air BNB are popular there and people are making upwards of 80-80k year off doing just that. Rents are $2500-2700 according to rentometer but realistically places smaller then this one are renting for $3000 in same area. Place is almost turnkey, needs roof and a wall thrown up w/ door to turn bonus room into 2nd bedroom and a closet thrown in. City doesn’t know the layout so there’s no need to get any permits They already think that a bonus room is the second bedroom. I know this is a good deal but in order for me to get it I would have to get a loan out and after rent I would be cash-flowing in the negative, because the properties in this area cost around 600,000-800,000. Having said that This place has $100,000 instant equity. What should my exit strategy be? Wholesale the deal? Where would I find buyers and how would I go about finding them? Help please

[Bill Plymouth]

@Sheila Arca don’t try to force a property to be something it isn’t.  If the numbers don’t work as a rental, don’t try to force it to be a rental.  

Run the numbers as an air bnbAnd a flip.  How much could you expect to charge per stay?  How much is your mortgage going to be?  How long are air bnbs vacant in your area?  For the flip, what’s the actual scope of work? How long will it take to get done?  How much will it cost?  How many days on market will the property sit?  How’s much will it sell for?  

Answer all of these questions and you’ll be able to find out the best use for the property