Arbitrage Short-term/Medium-term Rental Property

[Brandon Green]

Investment Info:

Condo other investment.

Arbitrage Short-term/Mid-term Rental Property

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

I first began managing short-term rental/Airbnb properties in 2017 in Denver, CO so this type of deal was right up my alley.

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

This arbitrage opportunity basically fell into our lap. A Realtor we knew was managing the small 6 unit community the condo is located in and the owner decided to only allow new tenants that were looking to put their units on Airbnb. We were offered an attractive lease agreement so we jumped on it.

How did you finance this deal?

We took care of the deposit, first month's lease , and furnishings with a line of credit.

How did you add value to the deal?

We added value by providing top notch furnishing and a plethora of extra amenities.

What was the outcome?

Our first couple months were steady but business began picking up in month 3 due to reaching Superhost status on Airbnb, great reviews, and word of mouth referrals. We currently still hold this property and are cash flowing $850-$1,000/mo.

Lessons learned? Challenges?

Main lesson was to try to keep our initial overhead for setting up the property lower in the future so that we can begin to cash flow sooner.