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Airbnb raises violent crime rates in cities as residents are pushed out

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Re: Airbnb raises violent crime rates in cities as residents are pushed out

#321

Post by cutemonster »

spfzero wrote: post #256
kelnos wrote: post #138

Earlier quoted context omitted.

> The person submitting the tip about an illegal AirBnB receives 25% of the fine. I feel like the whole "rat on your neighbors for money" thing has a lot of negative unintended consequences.

But it’s not ratting on your neighbors. They’re not your neighbors anymore when they moved away from your neighborhood and rented their place out to people from outside your neighborhood who are not going to stay long enough to be your neighbors either. You no longer have neighbors in that home.

In that case, I suppose yes the neighbors are gone. At the same time, what if they rent out their apartment only for two months and then they're back? Maybe that can be solved by waiting a month or so with complaining, combined with asking them about it

Re: Airbnb raises violent crime rates in cities as residents are pushed out

#322

Post by cutemonster »

another-dave wrote: post #285
solatic wrote: post #279

Earlier quoted context omitted.

You set up a fake listing with real outdoor photos and stock indoor photos. Many legal tenants don't have their paperwork on-hand, stuff like deeds is stored in safe-deposit boxes where it's not readily accessible to show police who spontaneously arrive to kick you out.

Doesn't AirBnB require identity verification to use the platform as a letter, let alone to list a property?

Maybe you can pay a friend to borrow his identity?

Re: Airbnb raises violent crime rates in cities as residents are pushed out

#323

Post by onlyrealcuzzo »

sudosysgen wrote: post #236
onlyrealcuzzo wrote: post #190

Earlier quoted context omitted.

Most AirBNBs - like most rentals - in desirable places are actually heavily cash-flow negative. This only works because you can count on the Fed constantly lowering interest rates and pumping up your investment on 5:1 leverage.

Nominally cash flow negative doesn't mean shit. For starters many people own the property outright, making it cash flow positive, and beyond that what matters is your change of equity. If you start with 50 000$ then loan against 30 000$ of that, but your equity increases by 70 000$ as you make payments, and then sell the house at the same price, you're still up 40 000$, even though your cash flow was -30 000$.

A cash-flow negative house that doesn't appreciate and become ever more cash-flow negative is a TERRIBLE investment compared to the S&P 500.

In the simplest terms, take a $100k house. 20% down = $20k downpayment + $3k closing costs. Generally, this is a house that would rent for at least $800/m.

Your payment is $337/m. Of that, only $143 is principal. If the house is even 5% cash-flow negative - that means you're only getting ~$100/m in principal.

You'd get ~$145 on your $23k downpayment in the S&P 500. And instead of being cash-flow negative and taking money OUT of your investments, you could instead ADD to it.

Add to that the fact that you'll pay an additional ~6%+ transaction costs at closing -> And even a 5% cash-flow negative house with 0% appreciation is likely to come out negative.

This only works because the Fed pretty much guarantees that house prices will appreciate >3% per year for the last 20 years.

3%*5:1 leverage => Crushes the S&P 500 average. Even if you're 10% cash-flow negative, it usually beats the S&P.

Add to that the fact that $250k of the capital gains are tax free -> And that pretty much eliminates the 10% transaction fee and makes it better tax-wise than the S&P 500.

Re: Airbnb raises violent crime rates in cities as residents are pushed out

#324

Post by heavyset_go »

jeromegv wrote: post #213
heavyset_go wrote: post #207

Earlier quoted context omitted.

> The property is listed on AirBnB.com, where you get the address and the name of the person operating the AirBnB. Owners play a shell game and will have property managers list their properties under their names or their employees' names, along with fake addresses that are only revealed via messages after booking.

Renting a space at an address and sending your renters to a separate address is a big no-no with Airbnb terms. Easy to detect as Airbnb sends mail to check and confirm where you live. And Airbnb could not caution that game, they would get sued for falsified contracts.

Sounds like a nice theory, but I haven't stayed in an AirBnb in a major city where that wasn't the case.

Re: Airbnb raises violent crime rates in cities as residents are pushed out

#325

Post by tehjoker »

vetinari wrote: post #35
trident5000 wrote: post #30

Earlier quoted context omitted.

Im good with that idea on investment properties. Though I have no issue with people having vacation homes. Theres a natural limit to how many vacation homes someone can have without a revenue source on the asset.

And that limit is enforced by upkeep costs. Owning homes isn't free, you know. It is a physically depreciating asset, that you have to take care of, whether you use it actively or not. Doing so costs money, so depth of your wallet puts a firm limit on the amount of properties you are capable to take care of.

Many landlords own tens, hundreds, or more properties. There is not a level distribution.

Re: Airbnb raises violent crime rates in cities as residents are pushed out

#326

Post by HWR_14 »

jolux wrote: post #318
HWR_14 wrote: post #254

Earlier quoted context omitted.

I haven't seen any evidence that governments, local or otherwise, spend "a lot more than it should [cost]." They are (correctly) unable to subsidize the cost of development by selling data, which in some cases means they cannot use certain preexisting libraries. But many groups have to rely on vendors and contractors for their technical needs. Their costs should be compared to other groups outsourcing their needs.

> They are (correctly) unable to subsidize the cost of development by selling data, which in some cases means they cannot use certain preexisting libraries. This is not what raises the cost of development. It’s not having any in-house knowledge of software development or even how to manage software development contracts effectively. Most companies that require a lot of software end up building development organizatio…

Do you have any evidence that it is "too inefficient"? Because you keep asserting it and I just don't believe you.

Re: Airbnb raises violent crime rates in cities as residents are pushed out

#327

Post by vetinari »

tehjoker wrote: post #325
vetinari wrote: post #35

Earlier quoted context omitted.

And that limit is enforced by upkeep costs. Owning homes isn't free, you know. It is a physically depreciating asset, that you have to take care of, whether you use it actively or not. Doing so costs money, so depth of your wallet puts a firm limit on the amount of properties you are capable to take care of.

Many landlords own tens, hundreds, or more properties. There is not a level distribution.

So what? It is business as any other. If someone owns many hundreds properties, there is probably investor money behind that.

There is not a human right to get assigned a dream house. You have to purchase, build or otherwise procure it. People make different choices with their money, some people save/get mortgage and then get a house, other people will spend their money in other ways.

Re: Airbnb raises violent crime rates in cities as residents are pushed out

#328

Post by sudosysgen »

onlyrealcuzzo wrote: post #323
sudosysgen wrote: post #236

Earlier quoted context omitted.

Nominally cash flow negative doesn't mean shit. For starters many people own the property outright, making it cash flow positive, and beyond that what matters is your change of equity. If you start with 50 000$ then loan against 30 000$ of that, but your equity increases by 70 000$ as you make payments, and then sell the house at the same price, you're still up 40 000$, even though your cash flow was -30 000$.

A cash-flow negative house that doesn't appreciate and become ever more cash-flow negative is a TERRIBLE investment compared to the S&P 500. In the simplest terms, take a $100k house. 20% down = $20k downpayment + $3k closing costs. Generally, this is a house that would rent for at least $800/m. Your payment is $337/m. Of that, only $143 is principal. If the house is even 5% cash-flow negative - that means you're onl…

I think we're talking past each other. You're not describing a house that's cashflow negative, you're describing a cashflow positive house, with 337+mainrenance expenses and >800/m revenue

Generally a cashflow negative house will have a much higher payment over a shorter term with much more principal, and much more in rent.

You also forgot inflation of the house price. You have to take into account 2% increase in house prices even without the fed doing anything, and leverage that. When you do that you find out that almost all of your interest payments disappear and much more goes towards you principal, thus increasing your equity gain.

Re: Airbnb raises violent crime rates in cities as residents are pushed out

#329

Post by jen20 »

eganist wrote: post #308
jen20 wrote: post #114

Earlier quoted context omitted.

Depends whether it happens literally during the middle of your stay, as I have experienced.

A landlord evicted you mid-stay without warning? That sounds extreme, and I'm having a hard time finding others who've experienced the same online (all of what I'm finding is around people being kicked out for parties). Do you have anything I can reference? Asking because I'd feel like the burden in just about all cases is on the landlord to put everything in motion to evict a tenant (whether it be an airbnb user or…

A building did, yes. It required fob access and was clearly being sublet against the contract. The fobs stopped working, and there was no remedy. This was in 2014 in New York City, I forget the precise building though.

Re: Airbnb raises violent crime rates in cities as residents are pushed out

#330

Post by onlyrealcuzzo »

sudosysgen wrote: post #328
onlyrealcuzzo wrote: post #323

Earlier quoted context omitted.

A cash-flow negative house that doesn't appreciate and become ever more cash-flow negative is a TERRIBLE investment compared to the S&P 500. In the simplest terms, take a $100k house. 20% down = $20k downpayment + $3k closing costs. Generally, this is a house that would rent for at least $800/m. Your payment is $337/m. Of that, only $143 is principal. If the house is even 5% cash-flow negative - that means you're onl…

I think we're talking past each other. You're not describing a house that's cashflow negative, you're describing a cashflow positive house, with 337+mainrenance expenses and >800/m revenue Generally a cashflow negative house will have a much higher payment over a shorter term with much more principal, and much more in rent. You also forgot inflation of the house price. You have to take into account 2% increase in hou…

Cash-flow negative is a simple term. It means your cash out is more than your cash in.

You can't hand wave expenses and pretend you're cash-flow positive. You can do that with profitablity, though.

I did not forget inflation. I literally said a "a cash-flow negative house that does not appreciate and become even more cash-flow negative"!

You are taking appreciation for granted (which is fine, the Fed literally guarantees it now).

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