What is the best Airbnb rental arbitrage course?

17 Replies

I was wondering if any of you have suggestions for an Airbnb rental arbitrage course? I am also interested in coaching/mentors in this field as well. I feel as if I have a basic understanding of this strategy and have been doing my own market research but I would like to connect with a professional before pulling the trigger.

Any feedback is appreciated!

Thanks

I would stay away from doing this to a property that you do not own and control. The owner can change their mind and start doing Vrbo/Airbnb as they don't need you if they decide to just do this themselves. This is a potential disaster waiting to happen regardless if you have heard how to strike it rich using other peoples money/property.

Get a loan and buy your own properties.

If you don't have any money and this is why you are trying to cut corners then start by wholesaling properties to save up enough for a down payment. 

Yes, don't do it. Especially if you are newer to STR. Lots of risk and unforeseens. Lousy crappy idea especially for a newbie. Toxic. Fools gold. 

I have a better version of Arbitrage. Buy well selected properties with other people's money. Such as Bank mortgages. Then instead of having tenants, use as term rental. My Arbitrage is using your property as short-term rather than long-term rental. And pocketing the difference. And you get rid of all those disadvantages and problem potentials of trying to do somebody else's property




Originally posted by @Liam Thomas :

I was wondering if any of you have suggestions for an Airbnb rental arbitrage course?

Any feedback is appreciated!

Thanks

 

@John Underwood not controlling the property is part of why I am hesitant to move forward with the strategy and why I am seeking professional advice. I see quite a few people saying that rental arbitrage is not a winning strategy. I appreciate your feedback!

Another question for you. I am finishing a remodel on the top unit of my duplex I recently purchased. What things should I consider when deciding if I want to use it as a short term rental or a long term rental?

Originally posted by @Liam Thomas :

I was wondering if any of you have suggestions for an Airbnb rental arbitrage course? I am also interested in coaching/mentors in this field as well. I feel as if I have a basic understanding of this strategy and have been doing my own market research but I would like to connect with a professional before pulling the trigger.

Any feedback is appreciated!

Thanks

 Hey,

Check this out before you buy anything: https://www.biggerpockets.com/...

Good luck!

@Emir Dukic Makes sense. I was just living in a new complex with about 50% vacancy and thought the same thing and became more intrigued by this model. Do you add any value (higher rent, % of airbnb profit) or simply pitch them the idea of turning the empty rooms into revenue? Also do you sign a full year lease or keep the unit just until their vacancy is lowered? Thanks for your time answering these questions. 

@Steven Rausch Really depends so you have to feel it out with the complex. Many just want occupancy so that is their main concern. Others you have to incentivize by offering a premium. 


Really though, there is strength in numbers. If you can get multiple units than you can often negotiate a discount. Companies that do lease arbitrage at scale (there is more of them than you probably imagine) can often get units at close to a 50% discount because they will occupy 100+ at a time.

Usually aim for a 2-year minimum lease but you may have to be more creative early on as you establish your operation.

I love how everyone is told "if you don't have money just start wholesaling until you do". I live in a town of 14k people, it's pretty small by MA standards and there are no less than 5 "wholesalers" with crappy hand written sharpie signs saying "we buy houses cash and quick" all over town. It seems every week there is another sign with a different phone number. Contrary to what most seem to think, there is a limit to how many people can just jump into the pool and buy and sell houses with almost no knowledge and zero experience.

I wonder how insurance works with rental arbitrage, a traditional renters policy seems inadequate.

We operate several Airbnb's (we own these properties) and have to use Proper Insurance, which is both expensive and designed for this type of risk. My understanding is also that special ryders are needed if your homeowner's insurance even allows it for renting part of a personal occupied property as a shared STR.

Originally posted by @Liam Thomas :

@John Underwood not controlling the property is part of why I am hesitant to move forward with the strategy and why I am seeking professional advice. I see quite a few people saying that rental arbitrage is not a winning strategy. I appreciate your feedback!

Another question for you. I am finishing a remodel on the top unit of my duplex I recently purchased. What things should I consider when deciding if I want to use it as a short term rental or a long term rental?

I don't own properties but I've started my airbnb business by renting units during peak season and List it in airbnb for daily rental. So far, I didn't encounter any problem with the owner as the unit owner prefers her unit to be rented long term since she find airbnb business stressful on her end as she has no one to manage her unit. But aside from airbnb, I've established my rental in facebook where I've gathered more guests. 

Some property owners offered to be in partnership to make money with their property than just let it sleep. This is an opportunity offered. So, I stopped renting out and started working on my clients property for rent and started earning money from it. I find this strategy a win-win on my end, as I don't have to cash out just to rent out properties. I just have to manage it, market the property, fill it with guests in exchange for some percentage that's win-win on both parties.


As for your query: What things should I consider when deciding if I want to use it as a short term rental or a long term rental?

I think it depends on your property location and your availability to manage it. If it's located in a nice location where it's close to tourists destination or perfect for a vacay, then you can rent it out short term as long as you're available to manage it since short term rentals needs you from time to time to attend to your guests concerns etc. But if you have people working with you then that's fine like I work remotely to those rental properties but I have some people working it for me to do the cleaning and staff for maintenance becoz I am virtual assistant, I cannot be there all the time as I have a Virtual jobs to attend too. 

Long term if, it's located nearby Universities, very accessible to town etc. and if the demand of long term rental in the area is high, then why not?

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here