Hey @Celeste J Small, I know you wanted to come in and get a lot of feedback that is all positive and supportive of arbitrage. Most of us here frown on arbitrage.
If anything 2020 showed us the flaws in the arbitrage models for most people. If you don't have a decent amount of cash on hand then this isn't a good model for you. Arbitrage is something to try if you own 20 doors with LTR and STR's in a portfolio and an opportunity comes your way. There are several people on here doing just that. By having those other streams and investments, you mitigate the risks.
Arbitrage leaves you at the mercy of a landlord, the municipality your place resides in and the market in general. If the market goes south on you, like during COVID. If the municipality changes the rules on STR's. If the landlord decides not to renew your lease and do it themselves. That is a lot of risk to assume with no good back out.
Any owner worth their salt will ask above market rates for a place. It gives them a bit more $$$ as insurance if you fail. If you do fail, you will be left with a lease and no way to recoup that. Even if you convert to a LTR.
You appear to be young. You can live on a shoestring if you choose. Do a bunch of side hustles and save up a downpayment for your first rental. Maybe do a duplex. Live on one side and AirBNB the other. Or a 4 plex. Lot's of ways to do this. FHA will lend with low down payment on up to a 4 plex.
On a personal note, try not to insult everyone on the board by calling names. The arbitrage question has been asked by young folks like yourself so many times (I mean hundreds or thousands of times) that us regulars get completely jaded by those asking. They ask without searching like no one has ever asked that question before. Then they get angry with us when we try and talk them out of it and never come back.
I wish you luck with getting started and I hope you can get to where you want to be!
