All Forum Posts by: Micah Lundstrom

Hello, 

I am looking for Fix and Flip deals in STL. PP at $50k-$350k and rehab estimate less than PP. 

Thank you so much!

Micah

 Hey @Michael Smythies! That point was actually made by @Michael Dumler in response to the original post - maybe he can expand on his thought process there. 

I general - I would tend to agree with you. In my mind since the total amount invested is less, and you are only on the hook for the length of the lease, your risk actually seems much lower. Another common objection is that the city will pass regulation prohibiting AirBNB and your business will be sidelined. I'm new so I could definitely be missing something - but my understanding is when AirBNB Arbitrage is done right, you are selecting cities with favorable AirBNB laws (or that have passed laws actually prohibiting laws against AirBNB). From there you are entering into an agreement with a landlord who is fully aware of your intention, as well as adding an addendum to the lease that leaves you the ability to break the lease should an unforeseen event sideline your business (not to mention that you could just sublease it to someone else if it really came to it). There are a number of people doing this successfully. Often times I see them lean on a corporate housing niche as well as running negotiations for 20+ units out of a single building. 

That being said, from what I've learned recently - I do think the whole approach is still much harder than it seems and that it would take full-time effort in order to build and scale an arbitrage business.

@Joshua Messinger @Allen Duan @Mike Eichler - Great information / advice - thank you!

Thanks so much for all the replies. 
@Izzie Y. - yes confirming Airbnb is essentially impossible in LA, so if I were to house hack in LA I would rent out the other space / rent out the hold thing when I moved. 

@Michael Dumler  - I thought I had done a fair amount of research on arbitrage, but the more I look at it the more I realize the time investment likely needed to make it work. I think what you're saying makes sense.

@Nicholas L. - My hope is to just buy / hold a good unit that can cover itself and will increase in value / rental income over time. So I guess I could house hack in LA or try to find a unit like that out of state. 

I live in Santa Monica - do you think house hacking here would still make sense?  

Hello, 

I am new to real estate investing and hoping to source some advice on first steps. Currently I have about $60k that I would be willing to move into real estate. By the end of the year I could have $80k. I work a full time-job and am attempting to pursue real estate investing as a side-hustle. 

My current strategy is to buy my first rental property this year, and then to use Airbnb Arbitrage to increase the rate at which I am able to collect cash for additional units. 

Two questions:

- Any feedback on this approach? Any tips for a beginner starting in real estate?

- I have considered starting with Airbnb arbitrage, pushing back the purchase of the first property to next year when market conditions may be look more favorable. Any thoughts here?

- A number of Instagram arbitragers have $5k programs where they "hand-hold" you through the first few deals. I know this information can be found online for free - but thoughts on leveraging something like this to get started quicker / with fewer mistakes while collecting a solid network of likeminded folk?

Thanks so much for any guidance here. 

Micah