Rental arbitrage/sublet
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Rental arbitrage/sublet (by S i d [MO]) Jun 14, 2019 1:59 PM
       Rental arbitrage/sublet (by BRAD 20,000 [IN]) Jun 14, 2019 3:03 PM
       Rental arbitrage/sublet (by Kim [TX]) Jun 14, 2019 3:40 PM
       Rental arbitrage/sublet (by Richard [MI]) Jun 14, 2019 5:20 PM
       Rental arbitrage/sublet (by Oregon Woodsmoke [ID]) Jun 15, 2019 2:54 AM
       Rental arbitrage/sublet (by Sisco [MO]) Jun 15, 2019 6:37 AM

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Rental arbitrage/sublet (by S i d [MO]) Posted on: Jun 14, 2019 1:59 PM

Anyone trying this, and if so, what technique and how well is it going?

To be clear, I am not talking about AirBnb/VRBO, unless you're leasing a house from someone and then sub-letting it out to other people (i.e. subletting) on a short term rental.

Also, I'm not talking about renting a house pretending I will live there and then going behind the owner's back and subletting. I'm talking about an up-front and fully disclosed scenario where I am responsible for paying $XXX rent to the owner each month and the owner approves in writing that I can use the property for any legal purposes however I like, realizing I'm on the hook just like any tenant if I do damages, etc.

Rental arbitrage/sublet (by BRAD 20,000 [IN]) Posted on: Jun 14, 2019 3:03 PM


Consider a Subject To deal. Same set up bu you are the legal owner. Take over the payments or pay the seller and monitor the mortgage.


Rental arbitrage/sublet (by Kim [TX]) Posted on: Jun 14, 2019 3:40 PM

I know people who have done rental arbitrage, and it can be quite profitable. The main issues aside from getting the owner's approval are insurance and regulations. If you are talking about arbitrage for STRs, the insurance is much more expensive than homeowners and renter's insurance. Also, HOA's and local governments have started trying to regulate STR's so you need to do your research.

Rental arbitrage/sublet (by Richard [MI]) Posted on: Jun 14, 2019 5:20 PM

This is done routinely in high priced areas like Calif and New York. I've done it myself. In fact, doing this helped me get started in landlording. It's been done for years. I've even seen guru courses on how to do this.

Back in the 80's, Paul Simon used to talk about this as well and also equity sharing arrangements.

Rental arbitrage/sublet (by Oregon Woodsmoke [ID]) Posted on: Jun 15, 2019 2:54 AM

Some landlords will rent to a master tenant.

The master tenant then rents out individual rooms, but the master tenant is the one who is responsible for all rent and all damage.

I can't imagine any landlord giving you permission to do any legal thing you want with the property.

There are a lot of things that are legal to do, that most landlords don't want happening in their property.

There are also a lot of legal things that would cause a severe liability situation for the property owner.

Rental arbitrage/sublet (by Sisco [MO]) Posted on: Jun 15, 2019 6:37 AM

Referred to as a master lease. I have known of its use in multi family and mobile home park sales.

Owner had allowed vacancy rate to climb to the point that lenders did not consider it rent stabilized. The master lease allows the new buyer to fix vacancy rate.

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