A Few Questions Regarding AirBnb Rental Arbitrage and Mashvisor Data

[Ilya Vokhmin]

1. I see numbers like cash on cash 15-20%, cap rate 8-10% etc given as “good investment opportunities”. However on Mashvisor I am seeing 4-6% as the absolute highest numbers in any area I look in both of these numbers, and a number like 2.6% is given a “B+ Rating” in Mashvisor. What are the implications here?

2. Given the numbers, how realistic is rental arbitrage as an Airbnb strategy right now? I have heard people are doing it and making good money? It seems risky to sink money into a mortgage before testing the markets and trying it a few times first, especially when I don't have much expendable investment money to begin with.

3. Mashvisor is giving often “total rent” / revenue numbers as like $2000-$3000 a month on many even top rated properties. After expenses this seems like a small number for a “top rated property” how is something like this even worth the effort for the net income for time and initial investment put in, or am I understanding this wrong?

4. How accurate is the Mashvisor data really? I am seeing different nightly rates when I click on the listings. Also it seems a lot of their “markets” on the heatmap are like 1,2,3 properties etc.. this seems like a small number to draw “market analysis” from for an area. Is there anything you recommend which is better than Mashvisor to look over the entire US for best markets and opportunities?

[Sarah Kensinger]

I don't know anyone that uses Mashvisor and from the sounds of it I think the numbers are off. If you're interested in rental arbitrage, I would highly suggest learning from someone who knows how to work the numbers correctly and the best way to do that strategy. Check out Michael and Elizabeth Chang