Looking to start my first MTR arbitrage

Orlando, Florida
Medium-Term Rentals
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Looking to start my first MTR arbitrage

Anthony Butcher
Orlando, FL · Member since 2015 · 47 posts · 8 votes

Hi,

I am looking to do MTR arbitrage in Florida. I have a few markets picked out, and a completely new to real estate investing.

So far I know I should setup an LLC

I have a target market that I'm looking at.

My questions is do they get regulated the way STRs do?

Do you reach out to county to see what their MTR lease terms are?

What kind of insurance do you get? 

I know I will need to reach out to an accountant, but does the taxes fall in line as the same as a STR or LTR, and what does that tax break down look like, and I'm aware each county could be different.

Is there anything else I should know?

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Nicole Heasley Beitenman
Investor · Youngstown, OH · Member since 2017 · 2k+ posts · 2k+ votes
3y

Pick up a copy of the book 30 Day Stay from the BP bookstore. That's a solid place to start.

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  • Nicole Heasley Beitenman
    Investor · Youngstown, OH · Member since 2017 · 2k+ posts · 2k+ votes
    3y

    Pick up a copy of the book 30 Day Stay from the BP bookstore. That's a solid place to start.

    2Reply
  • Anthony Butcher
    OP
    Orlando, FL · Member since 2015 · 47 posts · 8 votes
    3y

    I just bought it as well, and started reading it.

    Thanks

    1Reply
  • Nicole Heasley Beitenman
    Investor · Youngstown, OH · Member since 2017 · 2k+ posts · 2k+ votes
    3y
    Quote from @Anthony Butcher:

    I just bought it as well, and started reading it.

    Thanks


     Awesome! Rob Abasolo also just gave some details on arbitrage in the latest BP podcast, episode 730. That may help you.

    2Reply
  • Sarah WeaverPro Member
    Rental Property Investor · KC, MO · Member since 2015 · 38 posts · 50 votes
    3y
    Quote from @Nicole Heasley Beitenman:

    Pick up a copy of the book 30 Day Stay from the BP bookstore. That's a solid place to start.


    Hey, thanks for the shoutout, Nicole! 

    Anthony, great questions. You'll need to do your research about regulations for your specific market. You can start with a quick Google search for "CITY NAME STR regulations" and then drill down into government websites for the most up-to-date information.

    I would connect with other local arbitrage investors here in the forums or on Facebook (you can search for groups). 

    Podcast Guest on Show #232
    0Reply
  • Anthony Butcher
    OP
    Orlando, FL · Member since 2015 · 47 posts · 8 votes
    3y
    Quote from @Sarah Weaver:
    Quote from @Nicole Heasley Beitenman:

    Pick up a copy of the book 30 Day Stay from the BP bookstore. That's a solid place to start.

    Thanks 

    Hey, thanks for the shoutout, Nicole! 

    Anthony, great questions. You'll need to do your research about regulations for your specific market. You can start with a quick Google search for "CITY NAME STR regulations" and then drill down into government websites for the most up-to-date information.

    I would connect with other local arbitrage investors here in the forums or on Facebook (you can search for groups). 


    0Reply
  • Nicole Heasley Beitenman
    Investor · Youngstown, OH · Member since 2017 · 2k+ posts · 2k+ votes
    3y
    Quote from @Sarah Weaver:
    Quote from @Nicole Heasley Beitenman:

    Pick up a copy of the book 30 Day Stay from the BP bookstore. That's a solid place to start.


    Hey, thanks for the shoutout, Nicole! 

    Anthony, great questions. You'll need to do your research about regulations for your specific market. You can start with a quick Google search for "CITY NAME STR regulations" and then drill down into government websites for the most up-to-date information.

    I would connect with other local arbitrage investors here in the forums or on Facebook (you can search for groups). 


     I will advertise for you guys any day!!!

    0Reply
  • Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    3y
    Quote from @Anthony Butcher:

    Hi,

    I am looking to do MTR arbitrage in Florida. I have a few markets picked out, and a completely new to real estate investing.

    So far I know I should setup an LLC

    I have a target market that I'm looking at.

    My questions is do they get regulated the way STRs do?

    Do you reach out to county to see what their MTR lease terms are?

    What kind of insurance do you get? 

    I know I will need to reach out to an accountant, but does the taxes fall in line as the same as a STR or LTR, and what does that tax break down look like, and I'm aware each county could be different.

    Is there anything else I should know?

    Here’s my OPINION on MTR arbitrage
    In most areas there’s just not enough spread between the rent you”ll pay and the rent you”ll receive to make it a profitable return on your time and capital.  The spread seems to be there in STR for arbitrage to work, but in most areas MTR arbitrage is a non starter.  
    The reason I emphasize OPINION, is that I have no hard data to back up my opinion.  It’s based on my experience, which may not be all encompassing.  So weigh this with all other information you receive and make your decision from there.  However, I can tell you something for certain: pick the right area.  This is not a universal investment t type that will “work anywhere”. And good luck, knowck ‘em dead!
    Private Mortgage Financing Partners, LLC
    WebsiteView Page
    0Reply
  • Alli Breighner
    Lender · San Diego, CA · Member since 2022 · 587 posts · 298 votes
    3y

    Hi Anthony-

    I'd love to connect and discuss real estate with you. 

    1Reply
  • Anthony Butcher
    OP
    Orlando, FL · Member since 2015 · 47 posts · 8 votes
    3y
    Quote from @Don Konipol:
    Quote from @Anthony Butcher:

    Hi,

    I am looking to do MTR arbitrage in Florida. I have a few markets picked out, and a completely new to real estate investing.

    So far I know I should setup an LLC

    I have a target market that I'm looking at.

    My questions is do they get regulated the way STRs do?

    Do you reach out to county to see what their MTR lease terms are?

    What kind of insurance do you get? 

    I know I will need to reach out to an accountant, but does the taxes fall in line as the same as a STR or LTR, and what does that tax break down look like, and I'm aware each county could be different.

    Is there anything else I should know?

    Here’s my OPINION on MTR arbitrage
    In most areas there’s just not enough spread between the rent you”ll pay and the rent you”ll receive to make it a profitable return on your time and capital.  The spread seems to be there in STR for arbitrage to work, but in most areas MTR arbitrage is a non starter.  
    The reason I emphasize OPINION, is that I have no hard data to back up my opinion.  It’s based on my experience, which may not be all encompassing.  So weigh this with all other information you receive and make your decision from there.  However, I can tell you something for certain: pick the right area.  This is not a universal investment t type that will “work anywhere”. And good luck, knowck ‘em dead!

     I really appreciate your answer. I value everyone's opinion. 

    0Reply
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