Subleasing & STRs month to month

[Kaitlyn Beard]

Hey all, 

I currently do not have the funds to purchase an investment property at 20% down so I am looking into subleasing and trying out short term rentals. I have seen some investors reach out to home owners hungry for money seeing if they would be interested in turning their property into an air bnb. I plan to reach out soon in areas I think a bnb would thrive and see if the home-owner would be willing on a monthly basis to try it out? Has anyone done this? I would of course write up a plan with numbers before presenting to them. I am hungry for stories, advice or any tips and tricks! TYIA 

[Michael Baum]

Hey @Kaitlyn Beard . That is called arbitrage and it is generally frowned upon here. If you can't afford to buy a place, arbitrage is very risky for you. You could end up with a long over market lease and a house full of furniture you have to give away. I can work, but it isn't investing, it is a job.

Most owners wouldn't be interested in doing it. They could just do it themselves if it was viable in that area.

What you could do it is some kind of house hack. Maybe buy a duplex or 4 plex. Live in one and rent the others. Live for free, maybe make a bit and have an appreciating asset. You could use the FHA loan program with the 3% down and go from there. Then you will build up the cash, move out, rent the last unit, buy another and do it again. Much better plan IMHO. :)