Own it or Rent it…which short term rental team are you on!

11 Replies

Arbitrage seems to be the hot strategy versus traditional short term rentals.

Do benefits of scaling quick without dealing with lenders or too much cash outlay outweigh the perks of down payment and appreciation?

In a vacuum I am team own it, but do both as every opportunity is situational.

Would love to see where the Bigger Pockets crowd lands on arbitrage versus owning! I have a hunch its going to be a one sided assault

Cheers!

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If you want the rent it crowd, go on fb for the group Airbnb automated. (or something like that) you'll hear plenty of horror stories or examples why its so difficult to do. But there are also a few guys who claim to have 300+ units. So who knows. Pretty much everyone here is a traditional investor and owns. 

This question seems to be asked every time I go BP.  The answer is always the same.

All things being equal owning is better. But here is a case for renting:

1) You dont have the capital, dti, etc, to buy, or buy any more.

2) You want to scale your monthly cashflow very quickly. 

In both of those situations, I think arbitrage is the way to go. 

Feel free to click on the magnifying glass in the upper right  it gets asked every time someone holds a new seminar.webinar like they inveted sliced bread  it’s a new version of the no money down scams  

What percent of arbitrage people lie to their landlords? I have to assume it’s 90%+?

I mean what landlord would let random people off the street in to their property to hold parties with no background check for the same rent they can’t get from one reliable applicant who plans to live there? 

MAYBE, if I know you have a large net worth I can sue you for when you stop paying rent because suddenly STR's aren't legal in that area any more. AND you're willing to pay double the going rent I might be willing to let you rent my worst rental that needs upgrades anyway?

At least it will be easy for the landlord to check your income online and know how much he can raise the rent at renewal time. 

But still a hard no from me.