All Forum Posts by: Johnny Hastings

Arbitrage isn't investing. It is a job. Please do a search and you will find literally dozens if not hundreds of posts about it.

There’s a lot to be said about rental arbitrage on the forums already. But I’ll say a little about Los Angeles specifically. We started a rental arbitrage business in 2018 but have shifted to primarily property management of mid term rentals since. We did this for 2 specific reasons.

1. There are very few cities that allow short term rentals in LA and the OC. The few that are, may be moving toward banning or limiting them soon. 

2. Like others have stated above, unless there’s some benefit to the owner, arbitrage doesn’t make much sense to an owner. By managing furnished properties, we are able to provide a valuable service to an owner who wants to be hands off, while also helping them earn more rental income than they would renting out long term unfurnished.

Happy to chat and share more. Just send me a message :)

I would look into buying a condo and renting out the rooms to midterm renter like traveling nurses. That’s been a successful strategy for several of our clients.  You could do it in either Venice or the Valley. You will obvious find better value in the valley right now. 

Hey Johnny 

This topic is an interesting one and I always ask myself if an owner would be okay with someone doing an STR on a long-term hold. Unless there is some agreement between you and the owner to split the profits and you manage the business.

Another issue you will find in LA is that many cities and neighborhoods do not allow STRs. There are some instances where investors had to sell their properties since the whole neighborhood went to the city and made it illegal to do it. 

I am curious to know if there is anyone that has been successful doing this in LA. Tenant laws are super strict here and there are some cities that have rent control.