All Forum Posts by: Elizabeth Chan

@Elizabeth Chan Or you can find an unhappy STR owner who is ready to fire her current Property Manager but doesn't want to take on the management herself. The house is already fully furnished. You just need to upgrade a few things to make it stand out. That's what I did on the other end, I.e. I was the property owner and signed a contract with an arbitrageur. He agreed to invest a minimum amount of money into the property and I agreed to a 4 year contract to allow him to recoup his investment.

There are other owners like me out there, especially in today’s market. You just have to find them at the right time. Most PM requires a 3-month notice for termination and it will take you 2-3 months to find a couple of these owners (either through BP classifieds, Facebook, or cold calling property owners in the neighborhood) and another 2-3 months to negotiate a contract with the owner, then 1-2 months to do the renovation or upgrade or just getting a handle of everything about the house. So if you want to have this arbitrage business ready for 2024 spring/summer peak season, right now in August 2023 is almost too late but you may still be able to do it.

@Lisa Marie what’s the best way to directly contact owners when Zillow often only shows the contact info of property management companies? When you mention cold calling those in the neighborhood, how exactly can I acquire their number? Sorry I’m pretty new to this! Also I’m assuming you would analyze the deals before reaching out to owners?

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Hi everyone! I've been thinking about starting STR arbitrage because of the comparatively low start up cost. I understand the point about not building equity and also risks. But the cash flow is attractive and serves my current goals. I'm stuck on this: the furnishing cost will be close to $10,000 but leases typically are a year long. I'm just thinking the cost of furnishing is very high in comparison with the duration of time I can accrue revenue, ie. a year. Does that mean I should look for longer leases? Am I missing something in my thinking? Let me know your thoughts!

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Quote from @Collin Chan:

Quote from @Elizabeth Chan:

Hi everyone,

I am 23 and newly learning STR. My parents are paying all cash on a property (reason being we're internationals without a credit score and therefore very high interest rate) and they want me to turn the house into an Airbnb. The property would cash flow about 2,300 per month. But the CoCR is only 9% because of the initial 100% cash investment. I know it's not a great CoCR AT ALL for a typical STR property that is taking out a loan. So I want to ask, what is a good CoCR when paying all cash? What other metrics should I be considering and mindful of? Thank you so much!

Have you looked at DSCR loans to address the international and credit concerns? Many DSCR lenders don't factor that into the analysis. Just don't want you to make a decision to go all cash if there are other options for you.

Thanks Collin, looking more into it!

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Hi everyone,

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All Forum Posts by: Elizabeth Chan

Elizabeth Chan has started 2 posts and replied 5 times.

Post: How do i get started with Airbnb Arbitrage?

Post: Airbnb arbitrage furnishing cost

Post: Airbnb arbitrage furnishing cost

Post: Good Cash on Cash Return for STR If Paying Cash for the Property?

Post: Good Cash on Cash Return for STR If Paying Cash for the Property?