Airbnb Arbitage - pros and cons

[Chad Rocke]

I have 5 airbnbs in Denver Colorado, 1 of which is an arbitage

I also have 8 arbitage units in Phoenix.

I often get asked the pros and cons of arbitage.

Pros

Quickly scale

Low barrier to entry

Relatively low risk

Quick Cash flow

No or low maintenance costs

Cons compared to owning

No tax benefits

No appreciation

No principal pay down

No heloc or refi potential

Am I missing anything?

[John Underwood]

There were people doing arbitrage who just walked away from their leases during Covid.

I don't see arbitrage as investing, but it can create a job for someone so they can build up money to be used as a downpayment to buy an investment property.