All Forum Posts by: David Noble

I have a moderately upscale single family rental house in a desirable neighborhood. Current tenants are moving out. I was approached by another investor who wants to lease my rental and run it as his own Airbnb. 

I’m not hating the idea. I like the fact that it would be professionally cleaned on a regular basis. I’ve also been interested in dabbling with Airbnb but I wasn’t sure if the hassle would be worth it, and wasn’t ready to invest in furnishings in case it wasn’t for me. It appeals to me to have someone else try it first on my property, and if it works well for him, I can always do it on my own later.

Has anyone else agreed to let a third party run an airbnb? What other factors should I be considering.

I’m sorry if this has already been discussed ad nauseum. I couldn’t figure out how to do a search on this topic. 

Background:

Eleven years ago my wife and I bought a rough house in a desirable neighborhood for around $150. We lived in it and fixed it up for 10 years. I probably put about $30k in it and a LOT of my personal sweat equity (I remodel houses for a living). With the improvements and and market upswing I speculate it is worth around $270 now. Last year we moved out of the house, and we have been renting it. I get $1,600 for the house and it has an apartment above the garage that rents for $600. So after PITI, it cash flows about $1000/mo.

Obviously I’m happy with that income, but I’d like to buy more properties and start out with flips. I’m wondering if I should sell the house while I have the opportunity to avoid capital gains. We refinanced when we moved and pulled out as much as we could.  I think I have around $80k equity left in the house, and that would come in handy financing projects.

Should I pull out while I can avoid the taxes, or hold and enjoy the cash flow? 

I appreciate everyone's feedback.  Obviously, your answers were what I wanted to hear.  I appreciate how positive everyone is on this forum.  It's a breath of fresh air on the internet.  I look forward from learning from this community.  

well proverbed. 

Hello, David Noble here. I live in Lexington Ky. My day job is residential renovations. I’ve been doing high end kitchens and baths for the last twelve years. I “house hacked” my previous home which had an apartment over the detached garage. We moved out of the house, which I had fully renovated, last year and kept the property. Now I rent the apartment as well as the house. The two units combined make a nice profit over the mortgage. And it’s led me to the realization I need more properties.

That idea led me to BP podcasts, which in turn led me here. Ultimately I would like the passive income of more rentals. But I’m tentative to buy/hold at the top of the market. So I’m also thinking of flips. I have a lot to learn. I have a lot of questions. So here I am.