From: "Jim in AZ" 
Newsgroups: misc.invest.real-estate
Subject: Re: Win - Win? (Attn: JRF30 and any absentee owners of investment properties)
Date: Sat, 13 Sep 2003 10:07:51 -0700

I don't know about John, but I wouldn't go for it. You want me to buy a unit
and lease it to you for next to nothing so you can rent it out by the day,
week, month and make a huge profit? No thanks.

Jim


"Troy Bradley"  wrote in message
news:a0e358c1.0309121417.7ed5bd13@posting.google.com...
> Here's what I'm thinking of providing to absentee owners of investment
> properties who are in it for either free vacations or capital gains:
>
> I sign a long-term (4 - 10 years) lease (w/ or w/o option to buy) at a
> LOW rental rate, but enough to cover monthly expenses like utilities,
> condo fees, etc.
>
> I sub-let the property on a nightly, weekly, monthly, or annual basis
> depending on type of property.
>
> The spread would have to cover my property management costs plus
> provide positive cash flow while the property is occupied. (Plus an
> allowance for vacancies.)
>
> Would this arrangement allow property owners to take advantage of tax
> exemptions if they sub-let their own properties from me for extra
> weeks (above the 2 or so allowed)?
>
> My pitch to absentee owners is this: Instead of CHARGING them money
> month in and month out, regardless of occupancy rates, I will PAY them
> money month in and month out.
>
> I'm taking on the risk of operating cash flow in return for any
> operating cash flow I generate, but not paying off their mortgage, so
> they're still at risk for the appreciation, but they still have access
> to the property when they want it.
>
> What do you think, JOhn, am I crazy? Will absentee owners go for it?
> Will they see the value? Is there some pitfall(s) I haven't foreseen?
>
> Honest and frank feedback appreciated. Also, any absentee owners,
> please contact me at troy at nextra dot hu.
>
> Thanks!
>
> Troy Bradley