Author Topic: airbnb as a way to financial independence?  (Read 1697 times)

nara

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airbnb as a way to financial independence?
« on: February 12, 2017, 03:35:46 PM »
I was just listening to a podcast where a woman achieved FI by leasing long term rentals and then in turn renting them out on airbnb. On a vacation last year, my husband and I had a host who was using a similar strategy. The airbnb we stayed in was in an apartment complex and it seemed as if the woman who was managing it also had several other rentals in the same complex. So I'm guessing this may be pretty common.

Does anyone here have experience with this? It seems like a great side hustle with little financial commitment. When we rented in the past though there was always stipulations in our lease that prevented subleasing. Are these people just taking a big risk with being caught and sued? Thoughts?

trollwithamustache

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Re: airbnb as a way to financial independence?
« Reply #1 on: February 12, 2017, 04:13:21 PM »
Is this really FI or is this Self Employed?  It sounds like their business is Air BnB, and it makes them enough to get by, and it makes them happy and it gets them out of corporate BS or whatever they left behind.  Its real work though, the unit/room has to be cleaned for the next guest, someone has to be around when they arrive and answer questions. Problems that arise must be dealt with promptly since they are paying customers.  You need to monitor your listing and update your prices too if you have a high occupancy goal.  I have one friend who works from home so can do all this no problem, others have gotten swamped pretty quickly.

 Oh, and yes if you are violating the lease you realistically risk loosing the lease and your security deposit and risk up to getting sued and loosing.

marcissimoman

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Re: airbnb as a way to financial independence?
« Reply #2 on: February 12, 2017, 06:20:34 PM »
I don't (yet) have personal experience with this, but I've been researching it recently.  If you are renting and sub-letting without the knowledge of the owner, you do risk the wrath of the landlord.  If you are upfront about what you want to do, however, you can still talk some landlords into allowing you to do this.  Most will not, but you only need one to say yes (ultimately more, if you want to go big).

There is definitely good cash to be made, assuming you pick the right area for this.  I know of someone in Southern California is doing very well at this - he makes about $2k per month for each unit (that's net, not gross).  And he has multiple units.  He has bought several for himself, but most of them he is just renting and then subletting.  I heard a podcast interview with him, and it sounds like the only thing he does personally is handle the online guest interaction - he hires people to do the cleaning and check-ins. 

There are some courses on Udemy that teach you how to do this.  I'm going through two of them.  One is full of, IMO, shady  tactics that probably work, but also might get you evicted.  And the other one is pretty good, at least so far.

Bigger pockets has a forum dedicated to short term rentals that may be of interest.
https://www.biggerpockets.com/forums/530-short-term-and-vacation-rental-discussion

FIRE me

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Re: airbnb as a way to financial independence?
« Reply #3 on: February 12, 2017, 06:58:40 PM »
I was just listening to a podcast where a woman achieved FI by leasing long term rentals and then in turn renting them out on airbnb. On a vacation last year, my husband and I had a host who was using a similar strategy. The airbnb we stayed in was in an apartment complex and it seemed as if the woman who was managing it also had several other rentals in the same complex. So I'm guessing this may be pretty common.

Does anyone here have experience with this? It seems like a great side hustle with little financial commitment. When we rented in the past though there was always stipulations in our lease that prevented subleasing. Are these people just taking a big risk with being caught and sued? Thoughts?

In addition to the problem of violating the lease, a lot of cities are passing ordinances that regulate short term rentals. Registration, taxes and zoning are typical subjects of the ordinances. Some HOAs ban Airbnb and similar outright. So definitely, look before you leap.

SwordGuy

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Re: airbnb as a way to financial independence?
« Reply #4 on: February 12, 2017, 07:14:00 PM »
And remember, the HOA which has subjugated your independence could be just a few grumpy and over-controlling individuals away from banning this activity after you sign the lease and start doing it.