Airbnb Arbitrage Strategy

Airbnb Arbitrage Strategy

Member since 2022 · 3 posts · 0 votes

Hey all,

First time posting here. Wondering if anyone has experiences with doing air bnb arbitrage? Saw courses through social media that looked appealing for mentorship however I cannot say if they are actually legitimate. Anyone has experiences with a program like what Calvin Tran is offering?

With the market the way it is and living in the Boston area, getting a long term investment property that actually cash flows is not possible. I understand that there are other benefits with real estate investing taxes, appreciation etc. 

I have the finances to put down a down payment of 25%-30% to acquire a multi family. Everything around where I am goes around $1 million.

I’m stuck and not sure what’s the best use of my capital is in today’s market. Hence the thought of maybe doing something unconventional like Airbnb arbitrage where I don’t necessary need to deploy so much of my existing capital to get cash flow.

should I stick with the traditional methods and just keep analyzing deals and see if I can eventuallly find a  rental property that will work?  Or force myself to think  differently in today’s market?

Any input would be appreciated


Thanks.





0Reply
765 views

Most Popular Reply

Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
1y

@Phu Tran

can you start with a house hack?  house hacking is about building equity, not about cash flowing.  i wouldn't rule it out unless you've really, really searched exhaustively.  going on Zillow and getting frustrated doesn't count.  and as @Jonathan Greene noted you can draw a circle around where you need to be and look everywhere in the circle.  the harder it is to do, the fewer people will do it.

See this reply in the discussion

6 Replies

Jump to latestLatest
  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    1y

    Buying a class on arbitrage is like buying a class on building a class. Don't do it.

    Arbitrage can be a really good strategy, but one that is better paired with experience in the STR game and ownership because then you are more of an asset to the landlord than some newbie fresh out of a TikTok class trying to explain why they should rent you a unit so you can re-rent it for mor.

    If you are in Boston, you can go an hour in all directions and likely find cashflowing rental opportunities.

  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    1y

    I highly recommend using the search feature to scan this forum for past posts on arbitrage.  There is about a post a week so plenty for you read and understand why not to do it.  In less than an hour of reading here you will have moved on from arbitrage forever, hopefully.





  • Member since 2022 · 3 posts · 0 votes
    1y

    Thank you for the feedback. I felt it worthwhile to just gauge what the thought is about arbitrage and its seems pretty consistent with majority feeling its best not to do it.

  • Rental Property Investor · Arlington, TX · Member since 2016 · 706 posts · 611 votes
    1y

    You do not need to buy a course on arbitraging. Browsing these forums, a few YouTube searches, and you can get a property pretty quickly. However, I only recommend arbitrage for building capital. If you already have the capital to buy, I would skip that step and proceed directly to purchasing. If you purchase a good cash-flowing STR/MTR, you can quickly stack reserves and get the capital to buy another one. You can scale even quicker if you're planning on going the multi-family route. Suppose you already have the down payment for something that is over a million in your area. In that case, you should probably look at vacation rental spots for bigger returns or look into mid-term rentals across the Midwest or the South if you want to scale faster and get a better return on your money.

  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    1y

    @Phu Tran

    can you start with a house hack?  house hacking is about building equity, not about cash flowing.  i wouldn't rule it out unless you've really, really searched exhaustively.  going on Zillow and getting frustrated doesn't count.  and as @Jonathan Greene noted you can draw a circle around where you need to be and look everywhere in the circle.  the harder it is to do, the fewer people will do it.

  • Member since 2022 · 3 posts · 0 votes
    1y

    I'm not looking into house hack, although that would be viable if I was younger.

    I just have capital saved and with the vast array of investment options in real estate I been pondering what the most effective way to do it would be.

    I'm still considering a multi family but instead of just going into it with the narrow point of view of using it as a long term rental I should be be considering any unit for possible STR/MTR depending on the market as well.

    With the whole Airbnb arbitrage I thought it would be a good way to enhance cash flow.

    So let's say I have just 100k to work with. Instead of putting that into one property to own and rent out, I could take that 100k and rent out three units and use the capital to furnish it and go the air bnb arbitrage route.

    As the units generate cash flow I would use that as future capital to buy property.

    That was the thought. Acquiring property is the ultimate goal but it was just how to get there most effectively is why I wanted to ask everyone on here their opinons.

    Appreciate the feedback.

Join the conversationCreate a free account to reply, vote on answers and follow this thread.