How to scale rental arbitrage

[Alec Miller]

Hi Everyone!

I have been doing. Rental arbitrage for the past few months and am up to 6 units that are all performing very well. I see a ton of opportunity to continue to grow (I could have another 6 this week if I had the systems in place) but I am restricted due to the fact that I am signing on the leases, utility accounts, and financing the furniture so my credit is taking a beating. I have a partner on 2 of them where everything is in his name and he wants to do more deals but will eventually run into the same issue. I would really like to find a way to legitimize, get some business credit, and run wild. Anyone have any tips on how I can take the next step and really launch this thing?

Best,

Alec

[Scott Rogers]

Not sure I would throw all of my eggs in the STR business. Especially doing arbitrage.

At a minimum try and buy some of your properties like @Paul Sandhu mentioned. At least that would mitigate some of the "landlord terminated my lease" liabilities. There are other potential pitfalls like high maintenance, over supply, regulation, etc that have been brought up in other threads. Having said that I know lots of people that are making a killing in the STR market.