Partnership After All the Work is Done and Home is Making a profit

[Alicia Kuluris]

Hello Everyone,

Greatly appreciate any thoughts on the matter.

We have a property in Big Bear, CA and it is making a small profit this year, but it is strictly an STR. We have decided to focus on Midterm rentals and have talked about selling it. We debate selling it all the time but we know homes in CA usually always increase in value and it is just a waiting game and we can't sell it right now and make a profit yet.

We have a friend looking to buy a mountain home to enjoy but also Airbnb it. They love our house and we recently talked about partnering somehow on this property, if possible. We have already done all the work from remodeling, furnishing to all the technical/software stuff. It is completely up and running.

Our pain points:

• 1. Equity- The house doesn’t have enough equity to regain the money we put into it if we sell it right now.
• 2. Cash- We could use cash right now. It is nothing urgent so we are not pressed but we could use it to have more cushion in savings.
• 3. Risk Tolerance- We are no longer okay with the risk of having a bad snow season. We have savings for it but we don’t want to use up any more cash for that home.
• 4. Guest- I no longer want to deal with guest regularly.

What they could bring to the table

• 1. Cash – We wouldn’t even know how much to charge but cash is in the talks.
• 2. Experience- he has connections and experience remodeling homes and can remodel the property and yard, if needed.
• 3. Cover half the mortgage/utilities/insurance/taxes etc
• 4. If this works well we could partner up in other deals

Is this beneficial for us to partner although the house is running and making a profit?

What if they want equity in the home, how much would you offer?

How do you charge for all the money and sweat equity you have already invested?

Is there anything else to consider?