All Forum Posts by: Andre P.

Not sure exactly what you are referencing but there is absolutely no issues flipping HUD homes as I have been doing it for close to 30 years

@Andre P., yes that is certainly possible to do. 

You can lease a property where you are given the right to sublease it. The work to do airbnb or to rent by the room in general is different than what many landlord want for long term rentals. 

However, you probably won't find landlords of nice places willing to do that. They would likely be concerned not only about getting paid, but also about the wear and tear on the units. HOAs and even some municipalities limit airbnb so that is an issue as well. 

HOAs are created when land is subdivided for development. That is how they get the ability to control some things that happen on the property and also why not every neighborhood has one. 

I'm sure what you suggest is possible, but it is a niche. It isn't something every landlord would permit to happen. Im sure there are scenarios though where it would be possible. Perhaps a landlord with a rundown unit. You could offer to do a cosmetic (paint, flooring, etc) rehab in exchange for a long term lease (maybe 5 years) that allows you to airbnb the unit.

Thank you for the response. Yeah I assumed with landlord tenant laws consent would be absolutely necessary in those scenarios to have the right to sublease. In my state written consent has to be done by the landlord or property owner.

This is currently referred to as "arbitrage" but it's essentially subleasing. If you want to learn more about it, go to the forum for REAL ESTATE STRATEGIES > SHORT-TERM AND VACATION RENTALS and search for "arbitrage."

It can absolutely work, with short-term and long-term rentals. For example, I recently saw an owner renting a house for $800 a month. As a property manager, I know the home could rent for $1,400 a month. I could have offered the Landlord $900 a month guaranteed payment if she allows me to sublease. If she agreed, I could then rent the property for $1,400 and make $500 a month cash flow. The maintenance remains with her, she pays the taxes and insurance, so my risk is limited and I would cash flow more than I could with a purchase.

The key is to be open about what you are doing. If you hide it and the Landlord finds out, you are likely to lose the opportunity. You also need to find a way to make it beneficial, like paying them a higher rate, paying a guaranteed rent even when it's empty, handling minor maintenance, etc.

In my case, I was very busy and didn't approach it until it was too late so the opportunity went away.