Is Airbnb Arbitrage legit?

Question

Hi all, doing some research on my own of course but wondering…is Airbnb arbitrage legit with STRs or just a hoax for instagram influencers?

Rob Schou · Answer

It's a legit option for those who don't have the capital to get into the game on their own. BUT when you're doing an arbitrage you're just getting cash flow and you're missing out on the equity and tax benefits

Andrew Steffens · Answer

I actually started with an arbitraged beachfront mansion in FL in 2016, so it is legit.  However, I do not see how people can be successful as a scalable business in 2024.  Most properties have a smaller spread between STR and LTR and when you factor in utilities and other costs and then the cost of furniture I do not see people making money in first 1-2 years at all.  However that is what I see in FL and cannot speak for the whole country.

Yiwei Cheng · Answer

It is legit, but there are negatives that you need to be aware of before doing it.  It's not as simple as some people on Instagram claim - make millions of dollars without any money & do it in 90 days with a VA while working 4 hours a week!

Whether you should do arbitrage depends on your goal in doing it.  If you're just looking for a way to get cash flow, it can be a way to do it, but you're doing all the work while being on the hook for rent whether your house gets rented out or not.  You have a lease to abide by.  Also you are not building any actual equity.  At the end of the day, it's just another job if you're not building assets.

I'm looking to use real estate to build assets/wealth while using higher STR rental income to pay off those assets.

Sarah Kensinger · Answer

Very legit! But of course, you want to get a pretty good idea of the strategy from others that have been successful.

Nadeem Alamgir · Answer

It is legit, but you're better off purchasing units in successful STR areas in your market to benefit from the cash flow and equity. It's a scalable model if you have a solid team built out to help you manage scheduling and checking out.

Jeremy Jareckyj · Answer

I think in some areas you can successfully still do arbitrage, although it is becoming more difficult. I personally invest for the long term. I would rather spend money towards a buyer and hold property that will get me all the benefits of owning the real estate for years to come.

Is Airbnb Arbitrage legit?

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