My first interest and ultimately involvement in short term rentals came via arbitrage.
Arbitrage is the process of leasing/renting a property direct from a property manager or owner but instead of living in the property you list it as a short-term rental, typically on popular sites such as airbnb.com, vrbo.com, and/or booking.com.
The cost of the monthly rent and furnishing the place can easily cost upwards of $7,000 – 10,000 to get your property ready for bookings. Add in the travel costs to the destination (if not in your hometown) and ongoing marketing fees and the business opportunity may not be as attractive, easy, or profitable as it once seemed. To my shock, even though the rough numbers based on daily bookings appeared VERY attractive, after paying the monthly rent, plus any required fees, property cleaning, plus the linen cleaning company, and refilling essential needs, I would be lucky to profit $500 if I had 70% plus occupancy. To achieve the monthly numbers that would make this worth it (for me), I would need to acquire a lot more units.
“You gotta move different when you want different.”
Between the housing shortage in the United States; difficulty in finding desirable or ‘unsaturated’ areas; crazy high monthly rental rates; AND the increased restrictions being imposed by so many apartment building owners, property managers, and counties throughout the states, led me to look into other options, and eventually other markets.
I ultimately landed on Punta Cana, Dominican Republic.
Here’s what I discovered during my research and my 10 reasons why you should (consider) Punta Cana for your next short-term rental!
- It’s a fun place! If you love the beach, sunshine, golf, jet skiing, and warm weather year round, how could you not love this place? People from the U.S., Latin America, Asia, and Europe all visit this desirable and affordable Caribbean destination. At 77 °F Punta Cana’s ‘coldest’ month is January and the weather year around is usually in the 80’s, so there are plenty of months to vacation with all your favorite friends and/or family.
- You do not need to be a resident. You can invest in Punta Cana even if you are not a resident of the Dominican Republic.
- These are NOT timeshares. You will have a FEE SIMPLE title and own the property individually or collectively with others (depending on your preference).
- There are NO restrictions on short-term rentals. You can purchase a property there for retirement, a secondary residence, or if you choose you can convert it into a short-term rental with no questions asked.
- No credit checks. You can acquire a property with an easy payment plan, typically set up on a quarterly basis.
- Properties start at $85,000. Where in the U.S. can you purchase a new property for $85,000, let alone near a beach??? Properties are available are in both upcoming neighborhoods and near the beach. They are new build properties, developed and managed by a reputable, established, and well-known U.S. company with international presence.
- Modern with Amenities Galore! There are a variety of villas and properties to invest in and not only are they modern, they have highly desirable amenities making it attractive for the short-term rental model. Some amenities include club houses, amphitheaters on-site, 24 hour security, swimming pools, jogging tracks, playgrounds, live theater, and pet/dog parks.
- Close to the Beach. There are all types of properties and new developments there. Some are within walking distance to the beach and others a short drive, 15 minutes or less.
- You can enjoy with friends or family! Pick your time you want to vacation there based on your availability and preference. Take your bae. Take your friends. Take your family.
- Free No Obligation Webinar. Sign up to join us on one of our biweekly informational webinars to learn more about the island, the people, and companies that are currently operating there.