Short term rental vs flipping with $20 000

[Festus Edward]

Hello All, I hope you all had a great week and enjoying your weekend. So I got into a discussion with a fellow at the air port on my way back from NY and wanted to get your thoughts on the question. Basically, this fellow told me he had saved up $20,000 and wanted my advise on whether he should invest in short term rentals like air bnb vs flipping. I wasn't sure what advise to give because he talked about renting two apartment units and listing it on air bnb and other short term rental portal. Your inputs are appreciated. Thanks, Festus

[Andrew Johnson]

Festus Edward Your friend wants to rent two apartments, furnish them, and then do a STR vs. LTR arbitrage? That will work for about 3 minutes until the property manager finds out what he’s doing, an eviction is filed, and your friend is looking for a storage unit for all of that furniture and those furnishings that he just bought. Good luck!