$47k/Month in Rent & 0 Doors Owned through Rental Arbitrage

Rental arbitrage is a form of subletting that allows long-term tenants to make massive cash flow off of short-term rentals. Someone who’s done this to an extreme is Rafael Loza. Rafael was working the night shift as his W2 job when he found out about short-term rental arbitrage. He sat on the idea for a few months, but ultimately tried out the concept on an apartment. This one apartment took home a massive profit, allowing him to quit his job and scale to fourteen units in just nine months.

Now, Rafael has twenty-four active units, all grossing thousands of dollars a month in rent for him. Back in March of 2020, Rafael was projected to bring in forty-seven thousand dollars in revenue in one month alone. But, the pandemic hit, forcing him to pivot, switch strategies, and take advantage of the flourishing short-term rental market. He has his sights set on ownership, but now he’s simply raking in the short-term stacks.

Did you like having Ashley and Tony on today's episode? Let us know in the comments!

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Rental Arbitrage 101:
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Avery Carl’s Episode of the Real Estate Rookie Podcast:
https://www.biggerpockets.com/rookie122
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Interested in Short-Term Rentals? Grab a Copy of “Short-Term Rental, Long-Term Wealth”:
https://store.biggerpockets.com/produ...
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Follow Ashley and Tony on Instagram:
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Episode 520

Show notes at: https://www.biggerpockets.com/show520

0:00 Intro
2:49 Quick Tip
3:24 24 Units Without Owning ANY Property
8:49 What is Rental Arbitrage?
14:13 Smaller Startup Costs for Arbitrage
17:14 Cash Flow vs Long-Term Appreciation
22:23 How to Pitch Your Idea to Landlords
34:59 A 2020-Sized Pivot
40:01 Negotiating Lease Terms
42:51 Deal Deep Dive
49:24 Famous Four