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Updated over 4 years ago on . Most recent reply

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7
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3
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Rex Romano
  • Property Manager
  • Philadelphia, PA
3
Votes |
7
Posts

Airbnb arbitrage - need additional insurance?

Rex Romano
  • Property Manager
  • Philadelphia, PA
Posted

My partner and I are getting started with the arbitrage strategy to build up capital before we start buying property. We know that Airbnb offers insurance coverage, but are wondering if it is necessary or recommended to buy additional coverage. Does anyone have experience with this and if so, what has worked for you?

Most Popular Reply

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575
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581
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Robert Gilstrap
  • Residential Real Estate Broker
  • Cartersville, GA
581
Votes |
575
Posts
Robert Gilstrap
  • Residential Real Estate Broker
  • Cartersville, GA
Replied

@Michael Baum  I don't live in a perfect world and arbitrage works just fine for me. The pandemic bankrupted lots of businesses not just ones doing rental arbitrage. Stability in business is always about your position, your cash flow, reserves, what you negotiated, etc. The big boys who went bankrupt did so like many companies because they were never spending their own money they were spending wall street money from investors.  

Also the statement that "any owner will charge you a premium above market rate" means you are either limiting your thinking to your own geographic area or your own limited experiences. I negotiate below market rents just fine and have plenty of owners willing to rent to me (including one I met with today).

"What you do is what we all do. Save up until you have your 10% and go from there."   

Hogwash! @Rex Romano this is where you need to NOT listen to others who would throw water on your ambitions!  Obviously be safe and make solid business decisions do do have a solid cash position but if I waited until I had the money to do things like "we all do"  then I would be broke and only have a couple of properties.

If you want great rewards step out and take great (calculated) risks.

  • Robert Gilstrap
  • [email protected]
  • 770-480-7301
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