Arizona, BRRRR Airbnb. Thoughts & Criticism?

[Jason Martinez]

Hi BP, 

My buddy has 2 properties in Tempe, AZ. He is killing it with Airbnb. I am looking to get involved in this market as well. However, he has run out of purchasing power because he is buying turnkey properties. 

We are thinking to introduce a sidekick to BRRRR:

 BRARR (Buy, Rehab, Airbnb, Refinance, Repeat)

That way we can benefit from refinancing to increase volume and the STR income. If someone has done this already I would love to hear your story. I still need to speak to a lender to see if STR would qualify for a refinance.

My concerns is that I have a feeling Airbnb will be restricted in some way in the near future, but I also want to take advantage of this STR income while we can. If Airbnb becomes restricted I feel we can still flip the house for a profit in a worst case scenario situation.

What are your thoughts and criticism on this idea?