It cuts the profit model of owner occupied in half - at least.

Obviously, it's not a cash flow model, but an equity model.

I'll definitely be looking to make some connections in the Real Estate profession, while avoiding the loss in time and expertise in my own profession.Your response is much appreciated!

This video explains their business model better.Does anyone have experience in dealing with them, and is this a viable business opportunity for something that looks like a truly passive investment?

Or just bad business models that can't keep cash flowing against rising rents?

My business model has been predominately been renovating, but after researching the rental market for that area I was stuck with what I call a "good problem".

My business model has been predominately been renovating, but after researching the rental market for that area I was stuck with what I call a "good problem".

If that is your model, then you would have 8000 set aside in an account for reserves.

Lou,My numbers are below, and come with the following disclaimers:Ignore returns % (They aren't programmed correctly)30 yr am and 5% (might be long & light)I forced 15% of and on my investment as a return (I usually do 10% each)8% Management (I dropped this from my usual 10%)7% Vacancy (I dropped this from my usual 10%)7% Reserves (I dropped this from my usual 10%)The Management, Vacancy and Reserves are ON TOP of the seller's numbers, which include those items in their expenses.With my model, I look for positive cash flow after it's all said and done... and this property does that, albeit at slightly lower Return/M/V/R than I like... but it looks like it could be a winner if the numbers hold.

If your entire business model is based off of something like AirBnb, if the HOA ever says no to AirBnb rentals (or the city says no, for that matter) you're screwed.There are way too many good opportunities right now that currently cash flow to have to take all of the risk that speculation involves.