Buying a House Owner Finance & Airbnb'ing the Property

[Clayton Oakley]

Has anybody ever bought a property owner financed and then Airbnb'd the house? Not only would you pay for the mortgage but in a good Airbnb market, you could have some serious cash flow. Although owner finance properties do have higher interest rates, i understand the availability of money is sometimes more important than the cost. I'm thinking owner finance over a bank loan because I can buy multiple houses and it not show up on my credit unless I incur a foreclosure allowing me to leverage more of my money. I'm thinking about potentially doing this but want to get some feedback ... Thanks!

[Clayton Oakley]

@Paul Sandhu Yeah that makes sense, I'm just trying to leverage as much as I possibly can. An owner finance seller would charge me 10-12% and a credit card company would charge me 15%-22%. But even if I'm breaking even its still a good deal in my opinion because my rental is paying for my mortgage... Question Paul, what do you mean by it takes up to 6 months of rent to recoup the purchase price of a STR?

@Luke Carl Idk, i guess the owner is interested in selling their property owner finance to get long term returns on their money without having the duties of a landlord. I feel like this is the main reason driving owner finance sellers. If they want a long term investment, they aren't interested in cashing out and if they don't want to be a landlord, they aren't interested in Airbnb'ing or Renting their properties. I'm assuming they would rather finance to me because (charging 10% interest) i'm going to pay them 10% on their money for 15-30 years which is a great return for them, and they have no landlord duties. They're making 10% on their money and it's backed up by real collateral. That sounds like a pretty good deal to me... Meanwhile i'm paying off a mortgage and + cash flowing, sounds like a win-win!