STR AIRBNB ARBITRAGE

[Meir Greenblatt]

Investment Info:

Other other investment.

Purchase price: $900
Cash invested: $10,684

Contributors:
Akiva Greenblatt

airbnb arbitrage (no place was purchased) 2bd 2ba condo.
cash flow of $1320 is based on a 80% occupancy rate, corently (dec 19 ) it's only 35% occupied.

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

i'm an airbnb manager for the last 2 years and it was just natural to open my own place

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

trulia.com/rent.
i saw that the place is going for a very cheap price so i contacted the listing agent, doing the showing i asked her to get an approval for putting it on Airbnb.
the place was not clean and alot of deferred maintenance was required, so none of the other people that were looking at the place wanted to rent it.
i offered to clean and fix the place for half month of free rent, and paid for an umbrella insurance policy with STR insurance included .

How did you finance this deal?

100% financed by private money investment from a sibling

How did you add value to the deal?

put about $1k in to the place making the place nicer

What was the outcome?

the unit is getting fulled slowly and will get to the 80% occupancy target after 6 month.

Lessons learned? Challenges?

next time get a nicer rent ready place to save time.
i savet about $1.5k on used furniture from facebook market place, but it cost me a month of prime season that the place was not ready, next time i will get it all in 1-3 places.