My own experience: Airbnb Arbitrage
I wanted to share some insights for anyone considering Airbnb or Airbnb Arbitrage. For the past two years, I've been doing Airbnb arbitrage in Arizona while living in Colorado. Despite new regulations and increasing competition in short-term rentals (STR), I've found it to be incredibly profitable when approached correctly. Finding a successful property boils down to location and financial feasibility, and amenities. I rely on several tools to help me: Airdna for location scouting, Pricelabs to set my daily rates, BnBCalc for ROI calculations, and I also use Facebook groups for turnkeys. Additionally, I maintain a personal spreadsheet that calculates the maximum rent I can afford based on average revenue, expenses, and desired profit (I'm happy to share and explain how to use it). From my experience, I focus on cities and neighborhoods with a minimum 60% occupancy rate year-round, aiming for properties that can generate at least twice my monthly rent in income. This is to insure at least year round I will be generating cash flow and staying profitable after my expenses. From experience I realized what makes or breaks your property is where it’s located. Understanding the unique characteristics of each city and neighborhood, and why certain areas generate higher revenue, is essential in securing a good deal. Another important aspect I want to share about Airbnb Arbitrage is you don’t have to make it overly complicated. I found Airbnb to flow well when you have a solid team that can help you maintain your property and bring new ideas on how to improve guest stays. For those new to real estate or with limited investment capital, Airbnb arbitrage is an excellent way to enter the market and learn how to evaluate potential investments. If you're interested in learning more or need help understanding the process, feel free to DM me.