Airbnb in DC

[Briana Smith]

Hey! I am looking for leads for cohosting and rental arbitrage in the DMV (DC, MD, VA) area. After doing analysis, it looks like the best way to make a good return is to try an STR in DC proper, but when I look up regulations for DC the verbiage is as follows.

"A vacation rental is a type of short-term rental that allows a host to offer fee-based lodging at their primary residence without being present on the property e.g. use of the entire home. Cumulatively, vacation rentals cannot exceed 90 nights in any calendar year, and each rental is limited to 30 or fewer continuous nights."

I am confused because when I go onto to Airbnb and AirDNA it appears that there are several listing that are killing it with high occupancy rates and definitely renting the place out more than 90 days. Am I reading the data wrong or misunderstanding the guidelines? Also, if anyone knows someone that is doing STRs in the DMV area or an owner who is trying to get into it, please connect me. I would love a local mentor or possible client. 

[Michael Baum]

Hey @Briana Smith. Like @John Underwood and others have said, look at the law and not what others are doing.

The bottom line is arbitrage is a risky play unless you have a lot of reserve cash to absorb the losses if things go south.

It is worse where you are talking as you are limited to 90 days. Eventually they will start cracking down or even ban them outright due to people flaunting the law.

Your best bet is to live cheap and save up. Maybe look at doing an FHA loan on a 4 plex. Live in one, rent the others LT. Build equity and cashflow. After a year refinance and move to another one or buy whatever. Lots of options when you are young.