Two Paths Into STR Investing
Rental arbitrage -- securing a long-term lease and subletting the property as a short-term rental -- requires significantly less capital than purchasing a property outright. Typical startup costs run $15,000 to $30,000 per unit, covering deposits, first and last month's rent, furnishing, and working capital. The trade-off is that you build no equity and carry lease obligations regardless of occupancy.
Property purchase requires a 20-25% down payment plus closing costs and furnishing, typically $60,000 to $150,000 depending on the market. In return, you own a real asset that appreciates, build equity with every mortgage payment, and have complete control over the property's future.
Which Strategy Fits Your Situation
The right answer depends on your capital position, timeline, and goals. Investors with limited capital who want to prove the STR model before committing to a purchase often start with arbitrage. Those with stronger capital positions who want to build long-term wealth through real asset ownership typically prefer purchasing. Many successful investors use a blend -- starting with arbitrage to generate cash flow, then reinvesting profits into property purchases over time.
Done-for-you services like BnB Accelerator handle both strategies. Their acquisition team sources and sets up properties under either model, which means the investor does not need to become an expert in lease negotiation or property acquisition. The professional team handles the execution regardless of which path the investor chooses.
The Numbers in 2026
In most high-performing STR markets, arbitrage units generate $2,500 to $4,000 per month in net revenue with lower capital at risk. Purchased properties typically generate $3,000 to $5,000 per month while also building equity and offering tax advantages through depreciation. The cash-on-cash return profiles look different -- arbitrage often shows higher percentage returns on deployed capital in year one, while ownership compounds more aggressively over a five-to-ten year horizon.