Rental arbitrage can be a great way to start with Airbnb if approached carefully.

We like the approach of helping people to create good notes that we would be interested in buying if they decide to sell. 

Keep detailed records of income, expenses, and improvements, and choose the right filing approach based on your comfort level with these rules.This post does not create a CPA-Client relationship.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

This approach could keep things straightforward while accommodating their need for housing.

A business partner approached me about it, and I negotiated the deal based on CAP rate.

Could you pl explain a bit what are the flaws in my approach.

But it's looking like a long-term rental is not going to be the best approach for the area I'm looking at. 

Focusing on smaller multifamily properties needing light rehab is a smart approach for learning the ropes.

Curious to hear any creative approaches that have worked in today's market.ARV and future value are speculative so when I am looking at property I am looking at it for longer term - does it fit within my strategy based on conservative estimates.