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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Ashley's BiggerPockets Profile
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Tony's BiggerPockets Profile
Tony's Instagram
Real Estate Rookie Facebook Group
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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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440: Rookie Reply: Rent-Raising Renovations, the 1% Rule, & Quitting Real Estate
439: Real Estate Bookkeeping: A Crash Course for Getting Your Financials in Check w/Sarah Bratcher
438: House Flipping 101: How to Find Deals, Vet Contractors, & Manage a Rehab w/Sean & Ann Wayne
437: Rookie Reply: What EVERY Rookie Must Learn Before Investing in Real Estate
436: “Snowballing” to 12 Doors in 4 Years & Replacing TWO Six-Figure Salaries w/Emily Love
435: Transforming a Risky First Rental Into a Profitable Property by Doing THIS w/Noreen & Derek Eddy
434: Rookie Reply: Buying Your NEXT Rental & How to Save a Fortune on Renovations
433: The Million-Dollar Real Estate Business YOU Can Start Today with Just $150 w/Brittany Hailey
432: From Losing Her Health, Home, & Marriage to Chasing Financial Freedom (5 Doors!)
431: Rookie Reply: Build Your Portfolio OR Pay Off Debt & Tenant Conflict 101
430: My Rental Burned Down! What I Wish I Knew Before It Happened w/Aaron Sallade
429: The Investing “Map” You NEED to Uncover Hot Markets, Neighborhoods, & Deals w/Ariel Herrera
428: Rookie Reply: How to Analyze Rentals for Cash Flow & Manage a Rehab Project
427: Is Rent-to-Own the Easiest and Most “Passive” Way to Scale Your Portfolio? w/Jenn & Joe Delle Fave
426: 6 Properties & Financially Free in Just 3 Years ($20K/Year from ONE Rental) w/Jayson Ewert
425: Rookie Reply: How to Pass Down Generational Wealth & Top Airbnb Amenities
424: 5 “Tactical” Tips to Boost Rents, Cash Flow, and Property Value w/Angel Garcia
423: Making $15K/Year & Living with His Mom to 5 Deals in 5 Years with LOW Money w/Todd Fullerlove Jr.
422: Rookie Reply: How to Invest with $100K & Managing Home Renovations
421: Turning a “Failed” Property Into a $7K/Month Rental by Doing THIS Instead w/Kayley George
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