Property Available for Air BNB Arbitrage - 4Plex (1 Bedrooms)

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Property Available for Air BNB Arbitrage - 4Plex (1 Bedrooms)

Ryan Minekime
Rental Property Investor · San Francisco, CA · Member since 2018 · 24 posts · 11 votes

Hey All,

I just purchased a 4plex at 10th St and N Tuxedo St, it's a 4plex (all 1 bedrooms), which I've completely renovated top to bottom.  I have it listed for rental right now, but if someone would like to use it for Air BNB arbitrage I'd be open to it.

Photos attached.

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Ryan MoyerBusiness Member
Property Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 991 posts · 1k+ votes
3y

Lol people here have such an over the top hatred for arbitrage.

Why would you need to charge a premium for arbitrage?  Most arbitragers cover maintenance issues while they're arbitraging it, and the place generally stays in MUCH better shape with cleaners in and out of the home several times every month to clean and check up on things.

I wouldn't need to charge a premium to not have a LTR tenant in there cash flowing $100/mo for two years just so they can leave the place with $2000 worth paint needed, $650 for carpet steaming, and another $2000 of surprise repairs at the end of their lease.

Cosmic Vacations4.9174 Reviews
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  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    3y

    Well arbitrage people, here it is! An owner willing to look at STR arbitrage. Looks like a nice place!

    @Ryan Minekime, what were you thinking you would get as a LTR per unit?

    0Reply
  • Ryan Minekime
    OP
    Rental Property Investor · San Francisco, CA · Member since 2018 · 24 posts · 11 votes
    3y


    Quote from @Michael Baum:

    Well arbitrage people, here it is! An owner willing to look at STR arbitrage. Looks like a nice place!

    @Ryan Minekime, what were you thinking you would get as a LTR per unit?

    It's currently listed for $850/month (excluding utilities). I would assume it's about $950/mo total including utilities.

    0Reply
  • Bill B.
    Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    3y

    And. How much more than LTR rates are you planning to charge the arbitrage renter to make it worth the additional risk to you? (Not to mention possibly irritating your real LTR’s.) I assume an extra $500/mo? Maybe double the LTR security deposit? Is that enough extra? You got an ok from your insurance agent? Local government?

    Good luck, let us know how it turns out. 

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  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    3y

    Yes, very curious about the premium you will charge the arbitrager. You should definitely charge a premium. Would you just rent them the whole place?

    It is pretty rare to see how things like this go in real life. Lots of people come here asking about arbitrage, but I don't think I have seen an actual deal form up and move forward.

    0Reply
  • Ryan MoyerBusiness Member
    Property Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 991 posts · 1k+ votes
    3y

    Lol people here have such an over the top hatred for arbitrage.

    Why would you need to charge a premium for arbitrage?  Most arbitragers cover maintenance issues while they're arbitraging it, and the place generally stays in MUCH better shape with cleaners in and out of the home several times every month to clean and check up on things.

    I wouldn't need to charge a premium to not have a LTR tenant in there cash flowing $100/mo for two years just so they can leave the place with $2000 worth paint needed, $650 for carpet steaming, and another $2000 of surprise repairs at the end of their lease.

    Cosmic Vacations4.9174 Reviews
    WebsiteView Page
    5Reply
  • Edgar Martinez
    Architect · Hudson Valley, NY · Member since 2015 · 133 posts · 35 votes
    3y

    Good luck with the arbitrage deal (not being sarcastic, genuinely wishing you best of luck).

    Question though, why not just Airbnb it yourself.

    0Reply
  • Christian EhlersBusiness Member
    Real Estate Agent · NH & MA · Member since 2021 · 457 posts · 291 votes
    3y

    I've seen some of the most professional arbitragers actually negotiate first months rent free and other perks as the owner could lease all these units at once to one tenant, who in theory would stay for as long as they are making money! Not like a traditional tenant that will move based on family/work/life changes.

    Regardless, if you already own the place and have the additional capital to furnish the units, I'd suggest short term renting it yourself if you're comfortable taking that on, definitely better cashflow and if you run it right you shouldn't have many more headaches.

    [email protected]978-396-9939
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