Just as Jackie predicted in her “Biggest Opportunity Now” post from a couple of weeks ago, we are now seeing a flood of AirBnb properties being offered as long term rentals in my city. I’m located in a major tourist city and would love to take advantage of this opportunity to pick up some deals.
With so many properties on the market, what would be the best strategy? I understand the concept of “Master Leasing”, but is that the best strategy with so many homes for rent in the market? What are 2-3 strategies that could be utilized? Thanks in Advance for your help!
The safest thing to do is a performance master lease. You’d need minimal cash to get control of the property. You don’t owe any rent unless you collect rent from your subtenant and you’re not responsible for any repairs. Control without ownership.
If you’re willing to take on a little more risks, you could buy with seller financing or subject to the mortgage BUT if this pandemic keeps the US shut down much longer we’re going to see a lot of foreclosures and that means prices will drop. The price you pay is not as important as the monthly payment – you want to make sure you have really good cash flow.