All Forum Posts by: Ernesto Hernandez

Hey everyone, 

Have an owner who's on board with letting me sublease. The issue is his insurance doesn't cover STR activity and Proper Insurance won't cover him unless he's the operator and makes me the co host.

Would rather not go that route. 

Any suggestions to help me ease his concerns? Is he really at any risk given the Airbnb host coverage against damage and general liability?

TIA !

What's your end goal? That may help isolate alternative strategies. 

You insisting on screening and managing tenants, especially in California, is not a good thing. 

As it relates to protecting yourself, make sure you require Renter's Insurance from all tenants. It's extremely cheap, offers several benefits to them, and is the first line of defense that is depleted in the event of an unfortunate and potentially litigious situation.

Daniel, 

It comes from the bank. Most banks want you to own the asset for 6 months, with a lease in place. 

They'll send out the appraiser and give you 75% of what it appraised for. 

There are different nuances out there but by and large, that's how it works.

8,6,6,10 %

I'm not active in KC but I am in Indy where the economics have similarities. 

100 year old houses with $550-$700 rents is concerning forma couple of reasons. 

1. Those are typically D class, maybe C class neighborhoods based of rent rates alone. 

2. You won't cash flow well. With the slim margins, capex will eat you up. 

I shoot for $900, MAYBE $800 minimum.

Not true. Lots of mistakes on the part of realtors. I often see inaccurately described listings or details left out. 

There's a triplex being represented as a duplex in the Bay Area that will hit the 1% rule. 

To Jose's point, it's just a conversation starter. Price is part of the negotiation, terms are the other.

Awesome point Chris Mason. 

Luckily for OP, I can't imagine too many people wanting to add 2 ADU's.

There is definitely a market for ADU's. Enough to make it a full time business?

Maybe send out some mailers or get some FB ads and gauge the response in your area.

One of the most successful wholesalers I know was 19 when he started, this was a little over a year ago.

He is doing EXTREMELY well to out it lightly. 

Great question Ronny.