Airbnb arbitrage is a real estate investing strategy that provides a low-cost, low-risk entry point for new investors. While you don’t get the appreciation or tax benefits of property ownership, arbitrage can deliver cash flow in spades!
Welcome back to the Real Estate Rookie podcast! Like many investors, Keron Bryce started house hacking to help cover his mortgage. Once he discovered the potential of short-term rentals, however, he converted his unit into an Airbnb and doubled his cash flow right off the bat. But Keron still aspired to grow his business. So, without a ton of money for down payments, he decided to try his hand at arbitrage—a strategy that helped him rake in $140,000 of pure profit last year and allowed his wife to leave her nine-to-five!
Need an easy alternative to owning rentals? Arbitrage is not only a great way to test the waters before buying properties, but it’s also a profitable strategy in its own right! In this episode, you’ll learn about the pros and cons of arbitrage, the systems and processes you’ll need to automate your business, and the best way to find new units!
In This Episode We Cover:
How to get cash flow from real estate without owning rental properties
The strategy Keron uses to get a 100% cash-on-cash return
The pros and cons of the rental arbitrage model
System and processes you NEED to scale your business
How to convince a landlord to allow rental arbitrage
Leveraging your network to acquire MORE units
And So Much More!
Links from the Show
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Airbnb Rental Arbitrage: How to Make Money Without Owning Property
Building a 150-Unit “Lease Arbitrage” Empire and the STR Furnishing Playbook
Tools to Analyze Short-Term Rentals:
BiggerPockets Airbnb & Short-Term Rental Calculator
AirDNA
Rabbu
Connect with Keron:
Keron's BiggerPockets Profile
Keron's Facebook
Keron's Instagram: @keronbrycerei
Keron's Website
Check the full show notes here: https://www.biggerpockets.com/blog/rookie-370
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323: 10 Real Estate Deals in 18 Months After Losing 80% of His Income w/Matt Ramirez
322: Rookie Reply: Mortgage Write-Offs, Buying with an LLC, & Boozy Airbnb Gifts
321: The Fast Track to Financial Freedom & Turning $29K into $1.5M by Doing THIS w/Joe and Andrea DelGrosso
320: How to Work LESS and Earn MORE by Putting "Profit First" in Real Estate w/Mike Michalowicz
319: The Beginner’s Guide to Real Estate Development (with LOW Money Down!) w/Terry Harris
318: Rookie Reply: No Capital OR Credit? Get Deals Done with THIS Financing Tool
317: 7 Deals in 2 Years with HUGE Cash Flow: How to Grow Your Real Estate FAST w/Mackenzie Brogdon
316: Rookie Reply: Put THIS in Your Lease Agreement (So Tenants Don’t Break It!)
315: House Poor to HUGE Cash Flow by Doing THIS: Robuilt’s Rags-to-Riches Story w/Rob Abasolo
314: Rookie Reply: Mortgage Points, Seasoning Periods, and Cash-Out Refinancing 101
313: The REAL Side of Real Estate: When Rehabs and Rentals Go Wrong w/Tyrin Tyson
312: Rookie Reply: The Seller Hasn't Responded...What Do I Do?
311: DIY Real Estate Hacks That Will Save You a FORTUNE on Your Deals w/Shaun Kelly
310: How to Grow Your Rental Portfolio EVEN Faster w/Real Estate Partnerships
309: How to Quit Your W2 Job and Replace Your Income with Just 6 Rentals w/Travis Hall
308: Rookie Reply: Don’t Chase Cash Flow! Use THIS Metric to Analyze Your Deals
307: How to Protect Your Rental from Fires, Floods, Lawsuits, and Liability
306: Achieving FI with Fewer Doors: The Small and Mighty Real Estate Portfolio w/Chad Carson
305: The Rookie’s Guide to Analyzing Rental Properties and Airbnbs in 2023
304: Rookie Reply: Don't Have 20% Down? Here's How to Fund Your Next Investment
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