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Updated 4 months ago, 07/29/2024

User Stats

61
Posts
90
Votes
Jake Mercer
  • Investor
  • Raleigh, NC
90
Votes |
61
Posts

I'm quitting Rental Arbitrage after 4 years...here's what I learned

Jake Mercer
  • Investor
  • Raleigh, NC
Posted

"Airbnb is dead." "Rental Arbitrage is an outdated business model." How many people have you heard this from?

Well..everyone's story is different. I started Airbnb arbitrage 4 years ago and here's why I'm quitting the arbitrage business.

I'm quitting because I don't need to do it anymore! I used rental arbitrage to scale from $10k in my pocket to nine arbitrage properties in less than 2 1/2 years and then used that cash flow and profit to hire a full time operations manager, build a STR property management business with a partner and work with investors to purchase properties out of state.. We manage 7 STR properties and just bought 2 single family homes and a tiny home. All that will be rented out on Airbnb! Not to mention our existing airbnb arbitrage portfolio ;

I say all this because, for me.. rental arbitrage was a stepping stone to building a business in real estate. And while it might not be attractive to all real estate investors, I believe it can be a fantastic way to start to build experience, build profit/cash flow and establish yourself as a STR professional in your market and then use that to build a co-hosting/management business and work with investors that want to you use their knowledge and expertise to partner on projects.

Point is, don't believe everything everyone says about what is "bad" and what is "good". I know people making $20k+ months couch flipping and investing in vending machines. Don't knock the hustle, just knock the operator. Become great at what you do and you can make any vehicle a success. We will do over $750k this year in revenue form our Airbnb portfolio and that's because I took a leap of faith in myself to start an Airbnb arbitrage business 4 years ago. 

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