Just starting out with a short term rental, 2nd home.

[Mike Monisky]

I am just now purchasing a 2nd home zoned for short term rentals in St. Augustine with a great STR rental history. It's exciting and nerve wracking at the same time. I would like to keep moving in this direction with a 5-10 year plan to acquire more as long as I find the right ones that are also able to rent long term if laws change. I am very very new to this, looking for guidance on what pace to keep and are you able to finance more than a few homes? I've been reading a lot of posts on here and just trying to absorb as much information as I can. Thank you in advance.

[Don Konipol]

LOL, the ANTI arbitrage crowd, while correct in some of its positions on the risks and pitfalls of the STR arbitrage model, is, IMO, neglectful in not giving credit for a proven business model. The PRO arbitrage crowd, while also correct that STR arbitrage can be profitable, is equally neglectful in omitting the risks, difficulties, and capital needed to succeed in this business.

STR arbitrage is a BUSINESS, not an investment. As a business, the time needed is significantly greater than whats needed for an investment; the ability to borrow money greatly reduced from that of an investment, and the chance of failure significantly higher. This applies in general to most businesses vs real estate investments.

Can someone with right skill set, abilities, knowledge and luck built a very profitable STR arbitrage business? Of course! Does that person need a higher level of commitment, time, knowledge and experience than the investor airbnbing a couple of his own rental properties? No doubt.

Some of the anti arbitrage criticism is actually criticism of "a business model" by proponents of "an investor model".

Nothing wrong with owning a business.  However, the time commitment, the skill set, the risks, and the hassle is usually far greater than being an active real estate investor. But much of the decision is driven by personal financial capacity, as well as knowledge, experience, and skills.