All Forum Posts by: Michael Baum

Hmm, not really interested in discounting anything just because someone uses the app. 

Thanks for the post @Julius Vincent. I would much rather listen to an accountant than ChatGPT.

STRs in general are getting tougher as time goes on. JT has been an "it" place for a little while but profits get thinner as prices go up.

You end up competing against folks who have had their STR for 10 years and paid much less for their places so they can keep their nightly rates more reasonable.

Easily. You don't own the property. You simply lease it from the owner. One person lost their leases after the city council banned STRs. They setup a 3 year above market leases on a pair of places. Had to declare bankruptcy in order to get out of the leases. They lost it all. 

STR insurance helps you with issues caused by guest. Possibly an injury etc. There really isn't insurance that protects you from bad business turns.

There are a number of ways to lose your shirt. Bankruptcy is the ultimate finale but certainly not the only way.

I know one arbitrager who had to clear out a large place in order for the owner to start doing it themselves. Lost 40k in furniture.

The only time I have advised someone try arbitrage was a person here who had over 200 doors of LTRs in their portfolio. They had a solid base to absorb any issues/losses. Low risk.

Too many people here who want to do arbitrage don't have 2 nickels to rub together and want to make some quick $$$ in order to maybe buy their first place. Back in the days before COVID, it was a doable thing. Nowadays, things are much tougher and it isn't a safe bet any longer (not that it was safe then).

@Jason Eyerly, you say you will be getting into it for 10k. Is it a tiny place? After first, last and all the furnishings etc, 10k seems cheap to me.

Yeah, all that can happen is you go bankrupt, get sued and have to go live under a rock somewhere.

I wish any and all trying to do arbitrage but realistically, oftentimes it is worse than a crap shoot.

I know 3 people that went bankrupt doing arbitrage and one is still embroiled in a nasty lawsuit. 

Right now, it will be the toughest it has ever been to be successful at arbitrage so just make sure you have a lot socked away when/if things go south.

Hey @Christopher Ramirez Babinski, so arbitrage isn't an investing strategy, but a way to create a job for yourself and maybe a speedy way into bankruptcy.

Regarding the markets you talked about, there is no way I would invest or do anything in Portland, Seattle or even Spokane. WA and OR are very tenant friendly and you could get really stuck if guests don't vacate.

Also, those markets are very expensive. A 2/2 in Seattle or Portland can go for 4k a month. Spokane is less but not a ton. I am talking a nice place in a good neighborhood. 

Plus there are more hurdles to jump through when trying to do STRs in these cities.

Personally, I would rethink this strategy. 

Man we explain the differences all the time! Nice to see it put so simply. 

:)

Nice!

Hey everyone, just got home and did some perusing of things and here are some more deals. All Amazon Prime Day deals.

$279 - ZINUS 14 Inch Cooling Comfort Support Hybrid Mattress, King - https://www.amazon.com/gp/product/B0CKYZJY5T?th=1
So this is an upgraded Zinus mattress. Gets decent reviews. If you need a 14", not a bad deal!

$799 - Roku Smart TV 2025 – 85-Inch Select Series, 4K HDR TV – RokuTV with Enhanced Voice Remote - https://www.amazon.com/dp/B0DWHYJJCN?th=1

What can I say? 85" Roku TV. If you need to go big...here it is!

$14.22 - Cookie Jar Assorted Flavored Coffee Pods for Keurig K Cup Brewers, 40 Count Variety Pack (Flavored) - https://www.amazon.com/gp/product/B09BG8XSG6?th=1

Now this is above my personal cost per pod (25 cents or less) BUT, people seem to love these and they go fast in our lake house. As does these...

$20.95 - Java Factory Coffee Pods Compatible with K Cup Brewers Including 2.0, Assorted Variety Pack, 80 Count - https://www.amazon.com/gp/product/B00HHMPF5E

These also go fast. They have fun names and I go through a box of these in a year. 

$99 - ZINUS Suzanne 37 Inch Bamboo and Metal Platform Bed Frame - https://www.amazon.com/gp/product/B075FGY7G2?th=1

Now this is one of the better deals. Seems like a top notch frame with some style. 99 bucks. Add one of the $149 10" mattresses from the previous Deal of the Day post and you have a fully ready to go bed for $250. 

See ya all tomorrow!

Hey @Andrew Self, so I think he means not to use the built in pricing but maybe something like Pricelabs.

You can easily manage a single STR with just the built in tools. You can do it!