OUR FIRST AIRBNB ARBITRAGE EXPERIENCE!

[Chris Tarpey]

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $10,000
Cash invested: $10,000

This was an Airbnb arbitrage deal we worked with another investor on. Although we don't own these units, we signed 2-year leases on (3) studio apartment units and furnished them. These units were already freshly renovated. Being that these are close to base, we have had a lot of success with them on Airbnb, about $600/month cashflow per unit.

What made you interested in investing in this type of deal?

Wanting our business to get involved in Airbnb, we found a unique opportunity to have a low cost entry onto the platform by leasing units from another investor we know and furnishing them. This turned to be a win-win, because we were able to get 3 Airbnb's for the price of furnishing, and he was able to get the stable lease he needed to refinance.

How did you find this deal and how did you negotiate it?

We leased 3 units from this investor for $600/month each. Currently they each bring in $1300-$1600/month.

How did you finance this deal?

We used cash/credit card to furnish the units.

How did you add value to the deal?

These units were already renovated, we just furnished them, took professional photos and created listings for them on Airbnb.

What was the outcome?

We've maintained a 90% monthly booking rate...Being so close to Camp Lejeune has helped tremendously!

Lessons learned? Challenges?

When getting into Airbnb, it definitely is hands on until you build the systems. Although it was low cost the way we did this, we've spent considerable time building systems, adding team members and figuring out how to run this side of the business and get everything automated.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

For this deal, it was more so about networking and having a relationship with other investors. Opportunities like this come up if you have the right people in your circle.