Airbnb Arbitrage HELP

[Brian Court]

Hello new to the group. I was hoping someone might have a little experience or insight into finding an apartment building that will allow airbnb. Please help if you can or send me in the right direction because i have called 30 or 40 places and none allow it. Thanks in advance.

[Easton Hill]

I have a portfolio of 10 arbitrage units in Phoenix and it comes down to finding ways to provide value to self-managing "Mom & Pop" landlords. 

Large complexes don't get any value from having 1 of their units as an STR. It reduces the quality of the property for long-term tenants, introduces risk, etc. If they are interested in arbitrage they will work with a well-funded company like Sonder or Avant Stay.

SO Who can get value from working with an "arbitrager"? 

An individual landlord who self-manages a 2-8 unit property where you rent the whole building. This reduces their vacancy expense to $0, decreases maintenance costs (most arbitragers agree to fix any damage done by guests), increases rent (most pay a premium), and reduced the number of hours managing the property (aka it's more passive). 

One of my partners went from self-managing a small complex doing 5-10 hours of management work a week to cashing checks and "catching up" with me once a month to see if there was anything they needed to be aware of. They make more money, more passively - I got into the business and make money -  its a win-win. 

SO the question you need to ask is "how can I create more value for the people I'm trying to work with" once you nail that, you'll be able to find a landlord and get started! 

Pro-Tips; 

Set up Zillow alerts for all multifamily units for rent in the desired area and call each new one that comes up. 

Set up Zillow alerts for all small multifamily that "sell" (when properties transfer ownership landlords will be more open to talking) 

Network with small multifamily relators about buildings that are under renovations and will have multiple units coming up that need to be filled (problem) where you can "pre-lease" the unit and pay the landlord the 1st day it's available (solution) 

Remember the name of the game is "How do I profitably solve problems for the people I want to work with!"