Hello all,
I was wondering if there would be interest from the community to crowd funding an apartment that can potentially generate rental income?
I live in a neighborhood in New York that hosts several professionals in the age group of 25-40. There are high rise buildings here with plenty of apartments. The apartments barely stay vacant and I myself have sub-let my apartment several times over last few years.
I have a vague idea wherein I can crowdsource an apartment purchase in the neighborhood and then manage it for rentals. Since there would be no mortgage involved, the monthly costs would be minimal(building management fee). Any rent generated can be redistributed, while the ownership still remains with us.
Thoughts?
I was wondering if there would be interest from the community to crowd funding an apartment that can potentially generate rental income?
I live in a neighborhood in New York that hosts several professionals in the age group of 25-40. There are high rise buildings here with plenty of apartments. The apartments barely stay vacant and I myself have sub-let my apartment several times over last few years.
I have a vague idea wherein I can crowdsource an apartment purchase in the neighborhood and then manage it for rentals. Since there would be no mortgage involved, the monthly costs would be minimal(building management fee). Any rent generated can be redistributed, while the ownership still remains with us.
Thoughts?
Very interesting idea, do you plan to use tokens for that? It would be good idea to have some sort of shares equivalent to investment someone took. Have you been thinking about some legal protection of investors too?
So let's look at the risks associated with the investment and then risks in the plan.
Risk with investment: You are buying an apartment in a nice neighborhood. All risks associated with such an investment remain : Market crash in real estate prices, natural disasters etc. An insurance cover can be bought to compensate such risks.
Risk with Plan: The biggest risk with this project is non-occupancy of the apartment. What if the apartment is not rented for 12 months or more? And honestly I'd be lieing if I say I can guarantee a rental. All I can say is that I have lived in this neighborhood for 5+ years and have successfully found roommates/tenants. It WILL require work, but should generate rent with comfortable probability.
The risk is with generating rental income. However, your initial investment into the real estate remains intact. Even if the property returns no rental income, your equity in the apartment stays intact.
As for legal protection of investors, I have to dig in more. Any ideas would be appreciated.
