Starting a Subletting Business?

[Account Closed]

Recently I applied for pre-approval in order to start looking for small multi-family units to do an owner occupied house hack, I was, unfortunately, denied pre-approval due to my low income.

So I had an idea and I was wondering if this is 1) Legal/Feasible 2) Effective/Smart or Not.

So because I am unable to get approved for a loan I was thinking that I can search for houses that are renting below market value, sign a lease making sure that I am able to sublet, and then sublease that same property out for a few hundred dollars more each month depending on how far below market it is. I could even potentially get a lease option on the property and then use the tenants rents to pay into that and essentially buy me that property.

I was thinking I'd probably be wise to use an LLC to do this in order to avoid personal liability, but other than that what do you think of this idea?

I can't wait to hear your thoughts!

[Sam L.]

I've heard of people doing this to STR's but I don't see how this would be feasible on a large scale. How would you handle maintenance request? Who pays for what if something breaks? What happens if they stop paying rent? You'd still be on the hook to pay putting you in a tight spot.