Airbnb Arbitrage viable strategy?

Question

Is rental arbitrage a good option for starting out instead of buying on a limited budget?

Jaron Walling · Answer

No. There's almost no incentive for the strategy.

There were a number of Gurus preaching about rental arbitrage from 2020-2022'ish, but in this higher interest rate climate it makes no sense. There's no delta between the income generated vs. rent you owe to the owner. It's a short term strategy stuck in a long term world. Some STR markets are over saturated anyways which makes the strategy even less desirable.

Be the property owner.

Marisa Nack · Answer

@Chris Seveney what would you consider too little then? $25k, $50K?

Chris Seveney · Answer

I would recommend anyone getting started today to have $35-50k. you could buy a rental for $100k, put $25k down and have money for closing costs and any repairs. To me that is the bare minimum.

Marisa Nack · Answer

Thank you. I'm just starting my research. I'll look into other forums and start researching the budget I need to invest

Chris Seveney · Answer

This strategy is not well liked on BP and I am not a fan of it as I just do not see ability to make money in this. During covid yes someone in a coma could have made money doing this, but today, most likely the numbers are not going to work.

If you have limited budget my recommendation is not to invest in real estate. This is not an opinion many like but I hvaea been around for a long time and see far too many people get into real estate with little money and lose it all, of course you do not read those stories as people only share their wins and iwll not share their failures

Airbnb Arbitrage viable strategy?

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