All Forum Posts by: Natasha Santos

I would not go the rent-to-own route. You are better off doing traditional rental arbitrage for a bit, in that case, until you can afford a down payment on a house that meets your STR ROI criteria if capital is the issue. Another option would be to cohost properties for STR owners in distress from self-managing their properties to collect more capital for a down payment on your own property. However, if you don't have any STR experience thus far, the best route to go, in my opinion, would be to partner up with someone like-minded. When selecting a partner though, I would recommend avoiding close friends/family as first investment properties can be a very stressful experience for many. I got into my first STR by partnering up with my co-worker's husband I met at a work event. Actively talk about your interests in STR investing with people you meet and your pieces will fall into place. You want to take your time and be very confident with your investment strategies in today's market. That same first STR I got with that partner is still my best performing one even after we split profits. Please feel free to reach out if you have any questions!

Hey @Natasha Santos, so I would pass on this. If it needs upgrades/work and you are expected to perform such work, then walk away from it. You get nothing for that work and the owner gets everything.

Everyone else made great points and I agree.

So what you could do is a multifamily house hack. Get a duplex, triplex etc and use FHA financing to get up to a 5 unit place. Live in one and rent the others long term for now. You get the property paid for, live rent free, build equity and have a place you can leverage in the future.

1. Affordability: Make sure that you can afford the rent payments and the additional amounts that will go towards the down payment each month. It's important to be realistic about your budget and make sure that you won't be stretched too thin financially.
2. Length of the lease: A two-year lease is a fairly long commitment, especially if you're just starting out in the short-term rental business. Make sure you feel comfortable with the length of the lease and that you're confident you can generate enough income from the property to cover the rent and down payment payments.
3. Terms of the contract: Make sure you fully understand the terms of the rent-to-own agreement, including any penalties for breaking the lease early or missing rent payments. You should also have a clear understanding of the purchase price and any contingencies or conditions that must be met in order to complete the sale.
4. Condition of the property: It's important to thoroughly inspect the property to ensure that it is in good condition and that any necessary repairs or renovations have been made. You don't want to be stuck with unexpected repair costs down the line.
   Accurate income: Look up the awning airbnb estimator and plug in the address to get an understanding of the comps and potential income.

 In my opinion you are gambling in a market that is trending down. I never recommend arbitrage but I would think a good arb deal or more favorable teams like an owner finance may be a better route.  You stand to lose a lot here with start up costs if things do not go nearly perfect.

@Natasha Santos

Doesn’t sound like a good deal ,

The expenses alone on a big STR like this would likely wipe out any profit not to mention you aren't building any equity with the rent to own option

Keep looking , there’s always another deal

What is the projected income? If it's $80,000 a year or $6,600 a month, why would the owner sell it to you for $3,400 a month? They would lose half their income for two years, hoping that they would eventually sell it for $700,000?

Either the seller is bad at math or the income isn't projected to be as high as you think.