Rental Arbitrage in Urban Markets

[Christian Wilson]

Hello, fellow investors! My wife and I currently own/self-manage 2 STRs in TN (Nashville & Gatlinburg) and are looking for creative ways to scale. One strategy that we're very interested in is rental arbitrage. I'm a full-time real estate agent and am in the process of launching a property management co. to better serve my clients so this was a natural progression. My question for you guys is, if my business is leasing units from larger multi-family properties, am I still subject to the same zoning/permitting requirements as a property owner? I'm assuming there are layers to this but was hoping to hear from folks who are already operating in this space. I look forward to hearing from you guys. Blessings!

[John Underwood]

Quote from @Christian Wilson:

Hello, fellow investors! My wife and I currently own/self-manage 2 STRs in TN (Nashville & Gatlinburg) and are looking for creative ways to scale. One strategy that we're very interested in is rental arbitrage. I'm a full-time real estate agent and am in the process of launching a property management co. to better serve my clients so this was a natural progression. My question for you guys is, if my business is leasing units from larger multi-family properties, am I still subject to the same zoning/permitting requirements as a property owner? I'm assuming there are layers to this but was hoping to hear from folks who are already operating in this space. I look forward to hearing from you guys. Blessings!

 If you own 2 properties that you are using as STRS,  I don't see arbitrage as scaling to what you are already doing as an investor.

I think the rules are for the property and it's locations not who is actually renting it out.