All Forum Posts by: Arlyssa Warner
Arlyssa Warner has started 2 posts and replied 4 times.
So I am super excited! Someone didn't hang up the phone and actually IS interested in selling (the first time this has happened so far). the only thing is the home is a mobile home located in a senior community. Am I still able to write an offer the buyer would be interested in?
Post: Out of State STR vs. Assignment of Contracts
- Posts 4
- Votes 1
Quote from @Allen Duan:
I got my start in 2017 doing what you tried, STR arbitrage near Disneyland. We had up to 13 units before the pandemic when we lost them all. I agree with Travis that co-hosting has a lot going for it and that's what I pivoted to. Arbitrage can work still in the right market. You can also MTR arbitrage in a market that doesn't allow STRs.
My company now does property management for STRs and MTRs, very similar to co-hosting. I'd love to be a resource for you as a local LA MTR, co-hosting, and arbitrage expert. Happy to share everything I've learned.
Hi Allen, thanks for your response. I'd love to take you up on that offer and pick your brain a bit. How would you go about getting started if you didn't have any resources?
Post: Out of State STR vs. Assignment of Contracts
- Posts 4
- Votes 1
Quote from @Travis Timmons:
I think STR co-hosting is the best business if you don't have the capital to buy a property. You can get 15-25% of gross booking revenue, which is usually as much or more than the arbitrage margins without the risk. You're on the hook for the lease regardless of how the local regulation, property performance, strange or erratic behavior by a landlord, or any other surprises. Furnishing a place is also death by 1000 cuts. It sucks and is expensive. There are a handful of ways where arbitrage ends with you running out of money.
I don't see any way that you run out of money co-hosting. It has the same upside without the risk. It's going to be a grind calling property owners to convince them to give you a shot, but if you call enough, you'll get one. I would suggest finding Vacasa and Evolve managed properties in your market with bad reviews. Absentee owners are a plus as well...you're really looking to find someone who already has a property manager, does not live locally, and is underperforming (but with a good property/location).
Hi Travis! Thank you for sharing your knowledge, it's put things into perspective for me.
Post: Out of State STR vs. Assignment of Contracts
- Posts 4
- Votes 1
Hi everyone!
My name is Arlyssa, and I'm a 27-year-old newbie investor with a goal of eventually buying a multifamily property to house hack with my boyfriend. Currently, you could say we are both low-income; I'm a barista and he works in sales. We're looking for ways to increase our income and have decided to obtain an LLC.
Initially, I planned to use the LLC for a rental arbitrage business in Anaheim, CA, near Disneyland due to its high tourist appeal. However, I discovered that Anaheim isn't allowing new short-term rentals and that the strict regulations in California make arbitrage nearly impossible.
I then came across the assignment of contracts strategy and thought it could be a good way to generate income. However, I'm a bit confused about the process, specifically:
- Who is responsible for paying the closing costs, and how do you bring it up?
- Do I draft the contract, or does the seller's agent provide one?
- Do I find the title company during the inspection period?
Additionally, I'm considering whether I could use my LLC for rental arbitrage in another state, like Las Vegas.
Lastly, any general advice on the best route to take would be greatly appreciated.
Thanks for your time!