Calculator for Rental Arbitrage

[Angie Tonini-Rogers]

Hi fellow pocketeers... ;)

I'm trying to find a great way to calculate costs and revenue for when you choose to do a rental arbitrage (where you sign a year lease with a landlord or apartment complex, for example) and then sublease it as a short term rental. 

The calculators on airdna give good info on potential revenues for a particular address, and the rental calculators on bigger pockets give great info on potential for deals for long term rentals when you purchase, but there is no calculator, that I know of, for when you are only paying for a year's rent plus furnishings & platform posting costs...

Any suggestions on how you account for this unique way of calculating whether a rental arbitrage is a good "deal" or not? 

What I'm doing currently, is putting the year's rent cost in as the purchase price in the calculators... I also ensure that with annual rent costs plus furnishings, would work as a long term furnished rental in case something happens where we cant rent it short term via platforms such as airbnb... 

Thanks all! 

[Michael Baum]

Make sure you add to the calculations the possibility that you will be stuck with a lease unable to rent it out due to changes in the market or banning of STR in your specific market.