STR Wealth Academy is a coaching program for short-term rental business. It is created by the couple, Michael and Katrina Stead. The academy targets entrepreneurs looking to enter the real estate industry with a low budget. STR Wealth Academy leverages the multi-channel distribution strategy. Students list their STR properties on multiple platforms. They also learn negotiation skills, property set-up and off-season strategy.
STR Wealth Academy reviews are mostly positive, but they’re all from the course site. The reviews are also for the couple’s older course, BNB Bootcamp. Students praise Michael and Katrina for their swift reply to queries. According to Matthew D., they used Michael and Katrina’s pricing strategy after one coaching call. And they saw results the next day.
In this STR Wealth Academy Review, I’ll go over what it teaches. And what they mean about leveraging the sharing economy. I’ll also go over who the course is for and what you’ll get if you sign up. Rental arbitrage, like other business ventures I tried, can be profitable. But it also comes with risks and limitations I’ll tackle below. So you can decide if it’s worth it for you in 2024. Or you’ll explore more stable options like digital real estate.
STR Wealth Academy Pros and Cons
Pros
1-on-1 coaching with Michael and Katrina
Custom program based on your needs
Access to legal documents and templates
Access to private Facebook group
Cons
High cost. The cost is not publicly disclosed. But some students said it’s $6,000.
Short-term rental arbitrage is not legal in all countries.
Short-term rental is heavily regulated in certain states.
Price
STR Wealth Academy costs $6,000.
Group
STR Wealth Academy has 2 private Facebook groups with overall 3.3k members.
Refund Policy
STR Academy has no refund policy.
Origin
STR Wealth Academy is created in 2020.
Reputation
Michael and Katrina have positive online reputation. They are also one of the top short-term rental hosts in the United States.
I talked to STR Wealth Academy. They give helpful stuff like templates and docs. But it costs $6,000. Seems pricey, but might be useful.
What Is Short-Term Rental Arbitrage?
Short-term rental arbitrage is leasing a property long-term and subletting it for short-term rentals. This approach lets entrepreneurs start short-term rental business with lower capital. They don’t have to purchase a property to start. Michael and Katrina emphasize the growing sharing economy. It is the sharing of assets through the internet. The people get more comfortable sharing their spaces, the more bookings there will be. STR Wealth Academy's goal is to generate more income from STRs than the long-term lease cost.
The STR Wealth Academy short-term rental arbitrage process is:
STR Wealth Academy emphasizes diversifying their listings across multiple platforms. And not limiting themselves to just one option, like Airbnb or VRBO. This strategy can help maximize exposure and bookings for your STR properties. According to Phocuswright Research, almost 50% of STR owners use multi-channel distribution strategy.
What Do You Get With STR Wealth Academy?
Who Is STR Wealth Academy For?
Are Students of STR Wealth Academy Successful?
Students of STR Wealth Academy report success on the program’s website. However, they’re mostly testimonials of students who took Michael and Katrina’s former program, BNB Bootcamp. Nathanael E from Small Call Athens, Georgia said he made $83,000+ in his first 2 months. Nathanael took Michael and Katrina’s 4-month program. He highlights the ease of communications with Michael and Katrina throughout the process.
Will P. from Sacramento, California took the BNB Bootcamp as a complete beginner. He had no property and no experience. According to him, the price he paid for the program is just the right amount. Since it prevented him from the mistakes and headaches, he could have made without it.
Taras and Oksana are a couple who took BNB Bootcamp and eventually quit their 9-5 jobs. According to the couple, they leased two properties for a year and within 3 months, recouped the cost. Taras and Oksana also operate in Edmonton, Alberta like Michael and Katrina.
Is STR Wealth Academy Worth It?
STR Wealth Academy is worth it for people with capital looking for a personalized coaching program. According to their students, Michael and Katrina are responsive. You can expect answers to your questions. STR Wealth Academy also provides templates and guidance for legal documents. However, the cost of the program can be too steep for beginners.
Who Are Michael and Katrina Stead?
Michael and Katrina Stead are the founders of STR Wealth Academy, formerly BNB Bootcamp. The couple started their Airbnb venture in October 2018. It was a side hustle while working corporate 9-5 jobs. Now, they've grown their STR business to 60+ listings without owning the properties. Their listing can be found on Pique Lifestyle. Michael and Katrina also own Pique Properties Inc. It’s a short-term rental property management company founded in 2018.
Before starting rentals, Michael worked in finance as a currency trader. He was a Corporate FX Trader at EncoreFX. Michael graduated Management at Concordia University of Edmonton in Edmonton, Alberta. And Katrina worked as an economic development officer in the City of St. Alberta. Katrina graduated Psychology and Commerce in the University of Alberta at Edmonton, Alberta.
Michael and Katrina tried many online business models. They ventured in affiliate marketing, stock option trading, real estate and network marketing. They found success in Amazon FBA. But a mishandling of taxes from foreign sales left them with $50,000 debt.
They started short-term retail arbitrage by bootstrapping. Within a year, they listed 12 properties for STR. After 19 months, they reached $500,000. In 2020, they developed an online program for aspiring STR business owners. Currently, the couple lives in Edmonton, Alberta with their daughter.
What Are Micheal and Katrina's Claims?
Michael and Katrina Stead claim you can make 6 figures with short term rentals in less than 12 months. They emphasize the rapid growth potential of the sharing economy. According to them, their program can help people escape the 9-5 grind. You will receive the entire process of how they made $250k per month while working part time.
Debunking Micheal and Katrina's Claims
It is possible to scale your STR business to 6 figures, but not as immediate. According to AirDNA, the average annual income of a superhost is $61,793. And only 8% of property owners reach superhost. So it’ll take a little more than 12 months to reach 6 figures. It’ll also depend on the location and pricing strategies. Short-term rentals have a seasonal demand. Your rental income is inconsistent.
The short-term rental business is also prone to saturation. According to AirDNA, there are 1.3 million short-term rentals in the US. While Magnetic Strategy reported the national occupancy rate is declining. It went from 60% in 2021 to 55% in 2024. With the decline in demand and increasing property listings, it’s harder to rank to get more bookings.
Is Short-Term Rental Arbitrage Worth It in 2024?
Short-term rental arbitrage is worth it in 2024 if you’re already in the real estate market. Rental arbitrage profits from the difference between the long-term and short-term lease. Homeowners must trust you to lease their properties for long-term. And real estate is a market based on referrals. According to Peter S. Velardi, 8 out of 10 real estate transactions happen because of referrals.
The benefits of investing in STR properties in the current real estate market are:
- Higher income
- Tax deductibles
- Flexibility
- Less property wear and tear
Potential STR owners should consider the property type, location and regulation when choosing an investment property. Local laws and regulations impact STR investors in the United States through:
For STR property owner who want hand-off business, you can work with property managers. The role of property management companies in STR investments is to manage daily operations and risks. They take care of guest experience and build loyal visitors. However, their fees will impact your profits. In this regard, digital real estate is a better alternative.
Digital Real Estate VS Real Estate
Digital real estate vs real estate’s main difference is the initial investment required. Real estate investing involves properties like houses, apartments, or commercial buildings. Investors generate income through rent or property value appreciation. Meanwhile, digital real estate are online assets such as websites and digital products. They produce revenue through advertising, affiliate marketing, or direct sales.
According to the Luxury Playbook, real estate investments typically start at $15,000. While you can start digital real estate with no money. You can leverage YouTube channels or social media platforms. Digital real estate is also accessible worldwide. So you have a wider reach and wider customer base. With real estate investing, you’re dependent on the location. And it appreciates or depreciates based on employment and accessibility.
My Recommended Digital Real Estate Business
My recommended digital real estate business is local lead generation rather than rental arbitrage. Local lead gen is creating websites for niche businesses. Then you use local SEO to rank on search results. When the websites rank, you can rent them to local businesses. From there, it becomes a passive income of $500 to $3,000/month. Local lead gen requires less maintenance and produces predictable income.
With rental arbitrage, you depend on the location and regulations. Because there are off seasons, your income is not consistent. You’ll also have to take care of your guests to ensure good reviews. Rental arbitrage also costs at least $5,000 to start. It’ll cover the cost of rent and furniture.
With local lead generation, you can start with $500. This will cover the cost for website hosting and domain name. And because you own the digital property, you have full control with who to work with. Dealing with customers is also left to the local business provider. Because local lead generation has low startup cost, it’s also easier to scale. You just have to repeat the process in a different niche. There are 50+ niches to choose from. All the digital real estate I own today makes me $52k per month.
