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Overleveraged AirBNB "superhosts" scramble for liquidity during travel bans. Real estate market skewing ASSHOLES get comeuppance.

By Automan Empire follow Automan Empire   2020 Apr 29, 6:39pm 284 views   9 comments   watch   nsfw   quote   share    


An interesting emerging group hard hit by the travel ban and lockdowns: AirBNB "Superhosts" who leveraged properties specifically to rent on AirBNB and absolutely depend on high rent and uninterrupted cash flow. Surprising reveal in the article: One THIRD of all AirBNB hosts own 24 or more properties converted to short term rentals!

https://www.zerohedge.com/personal-finance/holy-god-were-about-lose-everything-pandemic-crushes-overleveraged-airbnb
2   Malcolm   ignore (2)   2020 Apr 30, 8:04am     ↓ dislike (0)   quote   flag      

Didn't read it, but not surprising. The run up in prices in the nicer areas was accelerated by the income stream. I know someone personally who was thrilled at all the "bank" they were making from AirBNB and then had her plans crushed when her HOA forbade short term rentals in her neighborhood. I can only imagine people in La Jolla, or MIssion and San Diego Bay areas and beaches are hating life right now. I can show you lists and lists of high end houses in San Diego with 400+ days on market and some of them with 150K price reductions. This had nothing to do with Covid in these cases, they were local laws and complaints, BUT, it is obvious that Covid is spreading that hardship throughout the real estate sector.
3   theoakman   ignore (0)   2020 Apr 30, 8:06am     ↓ dislike (0)   quote   flag      

Malcolm says
Didn't read it, but not surprising. The run up in prices in the nicer areas was accelerated by the income stream. I know someone personally who was thrilled at all the "bank" they were making from AirBNB and then had her plans crushed when her HOA forbade short term rentals in her neighborhood. I can only imagine people in La Jolla, or MIssion and San Diego Bay areas and beaches are hating life right now. I can show you lists and lists of high end houses in San Diego with 400+ days on market and some of them with 150K price reductions. This had nothing to do with Covid in these cases, they were local laws and complaints, BUT, it is obvious that Covid is spreading that hardship throughout the real estate sector.


It doesn't matter if it's a virus or something else. The way these people structure their "portfolio"....it's a pile of debt that needs to be paid off via rent. In CA, they are always 1 earthquake away from instant bankruptcy. On the east coast, they are 1 hurricane away from bankruptcy. The virus took them out first. The business model that these morons operated on with extreme leverage was not sustainable.
4   APOCALYPSEFUCKisShostakovitch   ignore (56)   2020 Apr 30, 8:16am     ↓ dislike (0)   quote   flag      

Malcolm says
HOA forbade short term rentals in her neighborhood


Those HOA's may have well been told by their insurance broker that the AirBnB units would have forced the condominium to shoulder a completely new insurance classification and commensurately greater costs with the properties being labelled hotels or SROs.

AirBnB wants you to believe the whole deal is unlimited free money forever at no new cost to the owner or leasee or anyone. It's just gushing money you can use to buy more slums in 'transitioning' neighborhoods and create more vacation rentals to gush more money until you can build rocket ships to buy Mars and cover it with trailers to rent to itinerant aliens, etc.

The fact is the insurance industry is going to shut the AirBnB cunts down more permanently than CV19 because a property with low-rent, desperate vacationers and itinerant 'business people' who can't afford to stay at the fucking Holiday Inn Express are a risk vector that home owner insurance underwriters aren't going to just accept because a couple of assholes sold a bankrupt idea to some stupid cunt investors who are willing to omit telling this important fact to downstream investors who are going to get fucked.
6   Ceffer   ignore (5)   2020 Apr 30, 8:37am     ↓ dislike (0)   quote   flag      

Guess the AirBnBs are going to have to go back to hosting gay orgies with complementary poppers to get by until the Panic Pandemic has fulfilled its political purposes.
7   Automan Empire   ignore (2)   2020 Apr 30, 12:45pm     ↓ dislike (0)   quote   flag      

zzyzzx says
a repost of this


Shoot, I scanned the headlines and thought I had a good scoop for Patrick.Net instead of the other way around for once. At least I successfully summoned AF for both an in-character and "normal" response.
8   Onvacation   ignore (6)   2020 Apr 30, 1:00pm     ↓ dislike (0)   quote   flag      

APOCALYPSEFUCKisShostakovitch says
Those HOA's may have well been told by their insurance broker that the AirBnB units would have forced the condominium to shoulder a completely new insurance classification and commensurately greater costs with the properties being labelled hotels or SROs.

AirBnB wants you to believe the whole deal is unlimited free money forever at no new cost to the owner or leasee or anyone. It's just gushing money you can use to buy more slums in 'transitioning' neighborhoods and create more vacation rentals to gush more money until you can build rocket ships to buy Mars and cover it with trailers to rent to itinerant aliens, etc.

The fact is the insurance industry is going to shut the AirBnB cunts down more permanently than CV19 because a property with low-rent, desperate vacationers and itinerant 'business people' who can't afford to stay at the fucking Holiday Inn Express are a risk vector that home owner insurance underwriters aren't going to just accept because a couple of assho...

The wisdom of AF shared to the ignore ant. except, of course the really ignore ants who ignore me.
9   just_adhom_preaching   ignore (3)   2020 Apr 30, 9:21pm     ↓ dislike (0)   quote   flag      

Kept my VRBO occupied and booked so far through the entire crisis. Legally too. I'm open the 2nd half of May but only because the Hawaii governor is an asshat and won't let me accept reservations. Easily survivable for those who aren't over-leveraged assholes.

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