What is the best Airbnb rental arbitrage course?

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What is the best Airbnb rental arbitrage course?

Real Estate Agent · Salt Lake City, UT · Member since 2018 · 15 posts · 10 votes

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

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John UnderwoodPro Member

Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes

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.

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Neil Henderson
Specialist · Carolina Beach, NC · Member since 2016 · 390 posts · 496 votes
7y
Haven't coached with anyone but we've interviewed both Mike Sjogren and Zeona McIntyre on the subject and found them both to be very knowledgable.
2 Reply
John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
7y
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.
5 Reply
Ken Latchers
Hatfield, PA · Member since 2012 · 1k+ posts · 629 votes
7y
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

2 Reply
Liam Thomas
OP
Real Estate Agent · Salt Lake City, UT · Member since 2018 · 15 posts · 10 votes
7y
@Neil Henderson I will be sure to check those out! I have heard Zeona on a couple podcasts.
0 Reply
Liam Thomas
OP
Real Estate Agent · Salt Lake City, UT · Member since 2018 · 15 posts · 10 votes
7y
@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?
1 Reply
Steven Rausch
Denver, CO · Member since 2016 · 12 posts · 7 votes
7y
@Emir Dukic I've actually come across some of Rabbu's listings on airbnb, how do you go about getting apartment complexes to approve of this strategy?
0 Reply
Emir Dukic
Rental Property Investor · Charlotte, NC · Member since 2019 · 57 posts · 26 votes
7y
@Steven Rausch Best opportunity is during lease up period. Units would usually sit empty so any revenue they can get by allowing STRs puts them ahead of their financial model.
1 Reply
Ken Latchers
Hatfield, PA · Member since 2012 · 1k+ posts · 629 votes
7y
*sigh*. Pied piper anyone?
0 Reply
Steven Rausch
Denver, CO · Member since 2016 · 12 posts · 7 votes
7y
@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.
0 Reply
Emir Dukic
Rental Property Investor · Charlotte, NC · Member since 2019 · 57 posts · 26 votes
7y
@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.
2 Reply
Steven Rausch
Denver, CO · Member since 2016 · 12 posts · 7 votes
7y
@Emir Dukic Great insight, really appreciate the answers and congrats on what you've been able to accomplish through this model. Hoping to get started myself so I may reach out again in the near future if you don't mind!

1 Reply
Bryan Devitt
Contractor · Oxford, MA · Member since 2018 · 807 posts · 745 votes
7y
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.
2 Reply
Rick BassettBusiness Member
Property Manager · Greater New Haven, CT · Member since 2010 · 377 posts · 434 votes
7y
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.
475-900-3100
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1 Reply
Jadi T.
Virtual Assistant · Philippines · Member since 2011 · 54 posts · 30 votes
7y
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?

1 Reply
Todd Goedeke
Contractor · Sheboygan, WI · Member since 2016 · 917 posts · 266 votes
7y
Control property with lease.
Commercial insurance policy to cover property and liability.
0 Reply
Travis Richardson
Rental Property Investor · Cedar Rapids, IA · Member since 2020 · 20 posts · 3 votes
6y
Anyone have a strategy for identifying arbitrage-friendly apartment complexes and owners? Seems like this is a lot of the effort to begin with.
2 Reply
Simon Collins
Rental Property Investor · Saint Augustine, FL · Member since 2018 · 102 posts · 58 votes
6y
@Emir Dukic or anyone for that matter. What channel managers or software do you use when you start getting scaled up to get info to/from all the platforms. I feel I have researched this for months and would now like input from those with many units.
Some must haves for me (if I could have everything in one but I know this is unlikely)
-Owner Portal Login with statement ability (cohost model so owners don't bug me to get info)
-Ability to update listing descriptions, pictures, and prices and that be PUSHED across multiple channels so I am not going to each one to change a photo etc.
-Calendar sync (most do this now across the channels)
-Automation of messages (obviously I feel like they all do this now but some better than others, from what I have read smartbnb is the best in this regard but that is about all it does, that I want at least.)
-Ability to sync with my own website for direct bookings
-Financial Reports would be nice too (I am a CPA so I like analysis)
These are my top items, I can find one software that offers most but not all, then I can find another that will offer 5 of the 6 but not all. Just frustrating.
Any suggestions?
0 Reply
Patricio Tellez-Giron
Investor · Westlake, OH · Member since 2015 · 20 posts · 3 votes
6y
@emir

@Emir Dukic, did you convert your units yo long term? how are you faring the storm?
0 Reply
Onkar Mishra
Member since 2022 · 1 post · 0 votes
3y
Quote from @Emir Dukic:

@Liam Thomas I started off doing rental arbitrage and now have over 50 listings. Happy to provide any insight. Feel free to DM me.

I would love to know more. How can we connect?
0 Reply

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