Offer this as an Arbitrage STR or make it a LTR - Lake front Condo

John UnderwoodPro Member

Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes

I bought into 50% ownership of this Lake Front Condo for pennies. Long Story.

I've thought about offering this locally for someone else to make this a STR and do a long-term lease with me.

I already have a lake house, so I have no desire to use it myself.

I don't want to manage another STR right now.

14 Spinnaker court, Greenville SC. You can see pictures on Zillow.

Thoughts?

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Corey Bey
Investor · Member since 2026 · 12 posts · 0 votes
13h
Why one of the other?
Why not let another seasoned STR operator cohost and you keep more of the upside without having to concern yourself with day trading on day operations?
Are you concerned that it won't do well as an STR?
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John RacinePro Member
Rental Property Investor · Casselberry, FL · Member since 2008 · 234 posts · 119 votes
12h
John, sounds like a great opportunity for someone in the arbitrage space, especially with the lake frontage. Assuming the HOA is on board with STRs and subleasing, I'd expect you'll have operators interested pretty quickly.
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Kent Morgan
Las Vegas, NV · Member since 2018 · 19 posts · 5 votes
12h
John, before deciding between a lease to an operator and a co-host, I'd check two things first: whether the HOA allows short-term rentals and subleasing (plenty of condo docs ban one or both), and what your co-owner agreement says, since a long lease or an STR operation usually needs both owners to sign off.
If both are clear, the trade-off is pretty simple. A lease to an arbitrage operator gives you a fixed check and almost no work, but you give up the upside and the unit takes STR wear and tear without you controlling how it's run. Ask for an STR-specific lease, proof of the operator's liability insurance naming you, a solid deposit, and the right to see their reviews and calendar.
A co-host or manager on a percentage keeps more of the income with you and you keep control of the property, but your income swings with the season, and a lake condo will have a real summer peak and a slow winter. You'd also carry the furnishing cost and the STR insurance yourself.
If you don't want any part of the day-to-day and the HOA allows it, the lease with a well-reviewed local operator is the lower-stress option. If you want the most money from it over time, the co-host route usually wins. Do you know yet what the HOA allows?
(Drafted with AI help.)
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Andrew SteffensBusiness Member
Tampa, FL · Member since 2022 · 4k+ posts · 3k+ votes
10h
Id be leery of the arbitrage people. Im sure are good but a lot of the ones in my area are bottom of the barrel. Have minimal experience and minimal cash and will bail on you the minute things get tough. If you do it, make sure there are personal guarantees and significant deposit.
If it looks to be a strong performer, I agree with the above to have a designer do set up and have a good local company manage or co-host.
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Owen RosenBusiness Member
Professional · Clinton Township, MI · Member since 2015 · 735 posts · 272 votes
1h
Quick take from the insurance side: if you lease it to an arbitrage operator, make sure the condo unit policy allows short-term rental use, because many owner policies exclude it. Require the operator to carry STR liability that names both owners as additional insureds, and check the HOA rules and master policy too.
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- John UnderwoodPro Member
  OP
  Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
  1h
  Yes of course.
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JD MartinBusiness Member
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Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 17k+ votes
1m
You're a pretty smart guy. Since you've got nothing in it and don't want to run another STR I'd just farm it out and let someone else manage it for you (not an arbitrager, I think they're mostly bottom feeders unless you get really lucky). And being in a condo you really don't want 3 degrees of separation between you and the association that runs the place; that's just asking for trouble and I would be surprised if they don't have clauses in there somewhere that could put the kabash on leasing or STRing it if they feel it becomes a nuisance. Let a management company take their 25% on it if it still makes you wallet.
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