Arbitrage inputs to model
Startup capital
Track deposits, first month rent, furnishing, design, licensing, setup labor, and contingency.
Lease burden
Model monthly master lease rent, pass-through charges, renewal escalators, and any landlord-required guarantees.
Revenue spread
Compare projected STR revenue against rent and variable costs to see whether the spread is durable.
Stress metrics
Check break-even ADR, break-even occupancy, and months to recover setup capital.
Rule of thumb
A good arbitrage deal should still breathe after you cut revenue, raise costs, and make the payback timeline less flattering. If the deal only works when every assumption behaves perfectly, the calculator is doing its job by being rude early.
For market research, pair this with the AirDNA-style calculator and the Airbnb arbitrage guide.