All Forum Posts by: Cristy George

So you still can't afford to buy a place, but with your knowledge, what about renting a long term unit, and then operating STR out of it? This is called Arbitrage, it's legal, and it can generate tremendous cashflow. My wife and I have an arbitraged triplex, we pay 36k a year to lease the entire triplex, and our gross rents are 125k over a yearly average. Not only that, once we were able to clearly and articulately explain our plan and educate the property owner on how we were going to execute, he was willing to defer rent for the first 2 months while we got up and running. We used an interest free credit card to stage, and were caught up on rents by the end of the second month, had the furniture paid off by month 4, and kept rolling. For us, this was a no money down deal that was solely based upon our education, and ability to communicate our ability to execute.

Clint - your wisdom has helped me so much! I am also just getting started in STRs. Can you give some advice on how to present the Arbitrage plan to a prospective client to show it is a win-win situation? Do you offer a premium percentage to the owner based on the income you make above your lease price?