How do you evaluate STR arbitrage investment?

[Patrick K.]

I was wondering how you evaluate investment with limited or no equities such as STR arbitrage. Since when the lease is up, you have nothing in the deal other than a few years old furniture, whose value would be limited if anything.

My initial thought would be to evaluate it like a hotel, which is usually evaluated with a payback period, but in a hotel deal the investment usually includes the land and buildings, which have significant value on exiting. 

Any pointer would be appreciated.