Rental Arbitrage-House of Cards

Anybody have any insight on those that rent an apartment or entire floor. Then, rerent the apartment on one of the short term rental platforms? (AIRBNB, VRBO)

Curious to see what there palms would be. Some of the larger players (Sonder, WhyHotel, and Stay Alfred) were able to raise large amounts of cash, fhese guys should be able to weather the storm and stay afloat. But some of the smaller players using the rental Arbitrage model may feel some pain. Considering many of the major cities where this model works may be shut down for business and leisure.

It may be too soon to feel any real pain, but the house of cards will eventually fall.

 

Rental arbitrage seems messy and labor intensive on residential. I’ve seen it work well on commercial. Sign a 30 year lease with no rent bumps and the ability to sublease in a rapidly gentrifying neighborhood. It’s hard to find a landlord that dumb but I’ve found some of these family type owners are a lot less defensive when it comes to signing a lease than selling. They won’t sell at market pricing but they’ll sign a lease with terrible terms because they’re too cheap to hire a leasing broker.

And when I say family type owner, I’m not talking family office money. I’m talking about the guy who inherited ~1-2 buildings and has no idea what the fuck he is doing.

 

Debitis ut odio reiciendis similique. Repellat debitis vel quaerat aut dolores et. Ullam maxime ut minus nostrum qui. Quidem alias odio minus ea.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
kanon's picture
kanon
98.9
6
CompBanker's picture
CompBanker
98.9
7
dosk17's picture
dosk17
98.9
8
DrApeman's picture
DrApeman
98.9
9
GameTheory's picture
GameTheory
98.9
10
bolo up's picture
bolo up
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”