Airbnb Arbitrage in Orange County, CA

[Leo Quinones]

Investment Info:

Single-family residence Rental Arbitrage in Orange County, CA.

Rental Rate: $1,800
Cash invested: $7,000

This is a 1-Bedroom Back House Apartment (House Hack)

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

I already had another airbnb arbitrage that I was operating and when this deal came up it was easy to act on it.

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

Through an agent relationship. The owner was having a hard time leasing it. Owner was asking $2,200/mo but we agreed to $1,800/mo, $800 deposit, and that I take care of any repairs under $200.

How did you finance this deal?

Credit card for the furniture and savings for the rent and deposit.

Lessons learned? Challenges?

This property is located in a residential neighborhood and I had a lot of issues with guests throwing parties and having too many unauthorized guests. This caused issues with the neighbors and was also damaging the home with excessive use/smoke damage.

Since then, I have modified my rules to come across as very strict and have installed noise/smoke monitors. Have also modified booking requirements to where I mostly host guests for 7+ day stays. (Less use/more income). That has helped a lot!