Airbnb Arbitrage Financial Planning Tool
Originally published: 25/08/2022 15:24
Last version published: 04/01/2024 08:47
Publication number: ELQ-86763-2
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Airbnb Arbitrage Financial Planning Tool

Create a cash flow analysis of sub-letting leased properties through short-term rental sites.

Description
Starting an air bed and breakfast arbitrage business means leasing properties (that you don’t necessarily intend to live in) in hot vacation/ travel locations, then renting out those locations using Airbnb, Vrbo, or other rental sites for prophet.

This unique business model allows individuals to become high-priced “middle-men”, i.e., the user/ middle man rents properties for longer leases (such as 1+ years) then short-term renters/ vacationers lease the space for 1 week, 2 weeks, etc. and the user secures funds to pay rent and pockets remaining cash.

This financial tool/ model allows users to determine if this innovative new way to make money is right for them.

Model features:
   • Works for up to 10 years and 100 properties
   • demonstrates how higher monthly booking revenue can be generated compared to average monthly leases
   • Allows users to test various feasibilities to determine what expenses/ leases will result in the most profitable             scenario.
   • User friendly- color coded so that users know that only tan colored boxes are to be edited
   • Enables wide-ranging financial planning for monthly expenses
   • Useful and easy to read visualizations, i.e., charts and graphs
   • Inputs from users along with built in logic produce the following reports:
      o annual and monthly cash flow analysis
      o ROI
      o IRR
      o annual pro forma
      o minimum equity requirement
      o DCF analysis

This template is also included in two bundles:
- All Models Bundle: https://www.eloquens.com/tool/P8Y4TX4v/finance/financial-forecasting-models/financial-models-120-useful-and-usable-logic
- Real Estate: https://www.eloquens.com/tool/vJdYH9R7/finance/real-estate/the-complete-real-estate-bundle

This Best Practice includes
1 Excel model and 1 Tutorial Video

Acquire business license for $45.00

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Further information

Test leasing costs against occupancy scenarios to see resulting cash flows / investment requirements.

Up to 10 years for properties that can be sub let via STR sites.


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