Rental arbitrage isn’t what it used to be, 2024 is different.

[Jake Mercer]

Rental arbitrage isn’t what it used to be.

2024 will be more competitive than ever for those getting into the space

Steal my top FIVE qualifications for what makes a profitable airbnb arbitrage property.

1.) You need to know that the average daily rate will cover your fixed monthly expenses (rent, utilities, insurance, vendor services) at 40% occupancy!

40% occupancy is 12 days of the month.

This will be less than 5% of the deals you find on zillow or hotpads. That’s the truth.

Gone are the days you can furnish grandma’s guest house and make money on it on Airbnb.

2.) Pick a house that is completely renovated. Don’t waste your time otherwise.

The last thing you want to be doing in rental arbitrage is doing minor repairs to the house.

Even if the landlord pays for it according to the lease, the issue is you’ve got to front it so you can get it done to avoid vacancy or bad reviews.

Be in the business of hospitality, not real estate. Find a property with updated kitchen, bathroom, updated fixtures, no carpet and brand new appliances.

Trust me, you’ll thank me later.

3.) If it doesn’t make money, it doesn’t make sense. Don't get emotional!

You found a “sick” property for Airbnb but the rent is too high.

Rent is 3.5k but it will only make 5k/mo.

Don’t get emotional. Arbitrage is about the margins and profits.

Aim for higher margins by selecting properties that are nice but will yield more value once they’re furnished and set up

4.) Location Matters: 

Don’t be afraid to leave your backyard.

Choose a property in a strategic location that attracts tourists or business travelers.

Proximity to popular attractions, amenities, and transportation hubs can significantly impact your property's demand and occupancy rates.

5.) Understand Local Regulations: Dont forget to do your re

search.

Keep abreast of local regulations and zoning laws related to short-term rentals.

Compliance is crucial to avoid legal issues and fines.

Select a property in an area with Airbnb-friendly regulations, ensuring a smoother operation