Is am I too late for Rental Arbitrage?

Question

Located in Florida, but open to wherever makes sense. Very interested in rental arbitrage through Airbnb or others. I just got turned on to this, but understand its been a strategy for a few years now at least and I fear i'm too late.

My biggest concern is economy and potential recession. I don't like some of the indicators for the next 12 months and i'm concerned about new 12 month leases for arbitrage purposes especially if i'm just now starting up and don't have an existing portfolio to help me out if something goes south.

I'm curious what the hive thinks about where the strategy is at and where it's headed. I've been reading and reading and listening and watching. I see a lot of upside but need to continue my research. My goal would be to use these funds to reinvest in actual purchased property; a strategy to raise  capital more or less.

John Underwood · Answer

It was never a good strategy in the beginning in my opinion.

Read through past posts to see pros and cons.

Nathan Gesner · Answer

I agree with john. Not only are you late to the game, I think people are getting a bad taste in their mouth for Airbnb rentals that are poorly run, in violation of zoning laws, or in violation of hoa/condo rules. Someone just posted about a market where Airbnb rentals are outlawed yet there are hundreds of them. It's only a matter of time before government finds a way to crack down on them and they go away.

if you want to make money, get a job and make money through legal, proven means. If you want to build wealth, get your personal finances in order, save up, and invest through legal proven means.

Ryan Moyer · Answer

I don't do any arbitrage, but why are you making the assumption that he'd be doing it illegally?  I didn't see anything in his post implying that he was planning to do it in areas where STRs are not allowed.

Michael Baum · Answer

What @John Underwood said.

Paul Sandhu · Answer

What @Derick Bonsu said.

Steve Richard · Answer

Agree, I wouldn't do anything in violation of any laws.

Derick Bonsu · Answer

I think you were supposed to say, what @Paul Sandhu said

Paul Sandhu · Answer

What @Michael Baum said.

Is am I too late for Rental Arbitrage?

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