the truth about rental arbitrage that Airbnb gurus will NEVER tell you

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[@THEcolebennett]

I operate 2 airbnb arbitrage units and everything he says is so true. I invested 20k into building out my units, 1st months rent, and security deposit. I wish I did not do this SO much. I wish I would have been more patient and just bought a property. They cashflow well but you get none of the benefits of real estate but a TON of risk. No depreciation, no appreciation, no equity. Also, you are super exposed because the landlord could fail to renew, the travel trends could change, the cashflow can be very inconsistent, and at the end of the day all your money is tied up into DEPRECIATING furniture that you cannot recoup your investment on. Big mistake I made, but the only good thing is that I have been learning how to run a business and make smart decisions with company money. You live and learn.

[@Robuilt]

This was such a good comment that it looks like I paid you to say this. WHICH I DID. Sending the venmo now! Jk, thanks for the honest POV, Cole.

[@THEcolebennett]

Also, I worked my butt off for 2 years to save $35k and now likely all or a good portion of that money may be completely gone depending on how my leases go. A good practice in Rental Arbitrage is to sign long term leases. I signed mine for 2 years, which should be enough to pay off any debts and regain some of my original investment into the business. Then I will be able to start over.

[@THEcolebennett]

@@Robuilt HAHA lol but yes all that you say is true! I appreciate your videos. Hope I can help others gain perspective if considering this strategy!

[@kyleeandsteven]

@@Robuilt 😂😂

[@Seagall.]

@@THEcolebennett If you’re not making your money back within a year using rental arbitrage than you ain’t doin it right tbh.

[@yancyyst]

Arbitrage is the best way to get into the business to learn how to run an airbnb business, then you can move into co hosting other people's property and finally buying your own properties and put them on Airbnb,, if you skip these steps you have to come up with a least 50k-80k to get a property which is a lot of pressure for new people coming into the business unless you already have the money, the furniture is what makes you the money so if your lease doesn't get renew you have to have plan B in place where you just transfer your current furniture into a new place, a hybrid approach is suitable for people with not a lot of resources.

[@Eastbaypisces]

but dont they do credit check and employment check income check? so if u already have a place n ur money going to that how would u pass income check?? or do u just give them hella big deposit??

[@captaincrunch7948]

@@Eastbaypiscesyou should own an llc and buy your home with that

[@maudestahollins8267]

Where you buy furniture

[@yancyyst]

@@Eastbaypisces Yes, is the the same requirements as if you were to get a normal lease

[@yancyyst]

@@maudestahollins8267 Amazon & Wayfair

[@MijangosProductions]

Let’s look at some math. BELOW average home price currently is $300,000. On a property you plan on Airbnb’ing, you will be required to put down 10-20% depending if you are looking to buy second home or investment. Let’s say 15% down because it’s always good to overestimate, $45,000 on just down payment. Let’s not forget another 5-6% for closing cost because cost of rate is expensive right now. 6% of $300,000 is $18,000. You are now all in $63,000 for closing cost and down payment. BUT WAIT, you still have to furnish it! Lets estimate $10,000 - $15,000 to fully furnish a 3/2. All in cost of about $75,000! BUT BUT WAIT, your rate is NOW around 7-8% right now so now this is eating up your cash flow !!!! Unless you are finding a 3/2 for $200,000 with the seller covering your 6% closing cost then you need MONEY! Please remember that a big portion of your audience does not have a nice $80,000 stack laying around so Airbnb arbitraje might def be a great start with a start up cost of $10,000 to $15,000!

[@kevinmitchell9218]

All your numbers are slightly off. Down payments for investment properties are 25%. Closing costs are no more than 2%. However, many builders are offering tons of incentives right now. Interest rates are closer to 6% (still high). Furnishing is closer to $10/sq. foot. The point still remains that it’s a huge upfront cost, I agree. However, unless you can lock in a long-term lease with a landlord (3+ years), there’s a good chance you don’t even see your money back before the lease ends.

[@kevinmitchell9218]

Lock in*

[@chriswbrashear]

@@kevinmitchell9218 FYI I got an investment loan for 20% down mid last year to buy a 20 year old house in Kona, HI. If I could have done 10% I would have, it was not an option with any lenders.

[@aholmeslife3833]

Thank you!!👏🏾

[@MrKhurramshahzaeb]

Very good point

[@skidesco]

Rental arbitrage is not a long term strategy. it is done with the goal that nobody mentions ( to be able to buy and own/rent the property to gain equity ). if you have little money and don’t want a mortgage because you don’t have the credit to run 4 different mortgages. RA with airbnb/etc can be very lucrative for the cash flow to quit your job and explore more options for revenue to scale and grow your world :)

[@norkotahrusset45]

I understand what you are saying it makes sense. It’s better to get equity. But for people that have to work their way up to get cash to purchase equity it’s not so bad to start with rental arbitrage. Just my humble opinion. Great video though loved the information

[@helprehouseourvets6919]

✔️Exactly‼️💯 Ppl gotta start somewhere and as they say, you gotta crawl before you can walk, so..

[@antoniomiguelhdz]

Currently netting $12,000/month running 6 rental arbitrage properties. It’s all about market research and understanding the risks. If you’re ok with risk, it’s the perfect business.

[@chillguy2758]

in what area Miguel? I'm curious

[@DarkNightFlcn]

Have the new Airbnb changes effected your rentals at all?

[@tdot8398]

I'm stuck on where to get the money to furnish the apt. I don't have 10-20k to purchase nice quality furniture so did you already have a bunch of money to start with or what did you do to furnish your first unit?

[@antoniomiguelhdz]

@@chillguy2758 all of our units are in Puerto Rico.

[@antoniomiguelhdz]

@@DarkNightFlcn Not really. We’ve stuck with our niche which is providing unique stays plus offering extra services to our guests. I think that what you have to take with you is that Airbnb might be the most dominant str marketplace but that doesn’t mean your business has to depend on their terms.

[@ravanlp]

rent out each room for even more $$, rent to professionals, traveling nurses, military, even a group home, assisted living, etc! People/professionals who need to rent for 30+ days, thats how you keep long term rentals/dont have to abide by str laws

[@shesgonecountry8322]

What if you’re just starting out? Wouldn’t arbitrage be a dip your toes kind of way to start and also produce cash flow to buy more long term solutions if you don’t have the cash flow up front or the ability to buy a property in the near future?

[@aaronmcentire2862]

If you do decide to do rental arbitrage, you'd most likely have a better chance of renting out a single family home instead of an apartment and then you can do cool things like renting out each room separately for working professionals. This might be something you could go into a bit Rob.

[@sentelmays1826]

I get it man but not everyone can acquire a property right away... no one should be looking at rental arbitrage as a long term business plan. It is a great way to start, I'm currently doing it and getting great returns. I plan to buy a a property next year.

[@Evettecord]

what kind of returns are you getting on your airbnb arbitrage units?

[@JustinWinterHello]

Scaled from 7 to 45 arbitrage units in 9 months. Goal is to create a sizeable cashflow snowball that can pay my basic personal living expenses, pay for an operating team, and enough cash to flip the switch and start buying monthly. Arbitrage is good for what it’s good for, they are different tools for different purposes. Equity is awesome, if you can buy it. Owning shares in your startup company that goes public is also better than just a salary. Unless you have a healthy six figure income and can buy a vacation house per year starting right now, your should probably start with arbitrage to create a 6 figure income first.

[@JorgeFlores_one]

Well said man. Honestly some wont, since its easier to scratch your itch by saving instead. Arbitrage will require them to wear a lot of hats.

[@grmuniz]

7 to 45 - that's a great number! Would you talk more about it?

[@joefreeman3860]

What startup company are you talking about though?

[@tylerfields1239]

What do you do in the beginning while waiting for first property to cash flow? If you need that money to pay rent? Deferred payments till cash flow (in contract)?

[@JustinWinterHello]

@@tylerfields1239 use Melio+Amex Plum to push out the bill of rent and furnishing. That combo, for a small cost, means it isn't cash out of your pocket until nearly 90 days if you time it right. It should be profitable immediately or else you made some major mistake in pricing or location selection. But ex. if you think you will cashflow $1k a month, but rent and fixed is $1k a month, furnishing is $4k to get started, that's a 4 month payback period. So if you can push out the initial expense of furnishing and the first rent check and security deposit, then you are making $3k net before you have to pay the operating expense and furnishing you bought in month 1 at approx. 5k. So that's only -$2k down in cash in month 3, so two more months and you are break even and you made your cash back and are break even on $5k initial outlay. Everything only gets better if you can negotiate a free month (I have never been able to do that). Then save up+pull money from your savings etc. and do a batch of 3 at once. Wait to get your money back etc etc and rinse wash repeat to scale. If 1 works, than 100 could work. You will start to run into operationalize challenges at that scale and need to keep on your SMB hat to building systems and processes, hire people to run stuff, etc.

[@skoopqueen]

I wasnt financial free until my 40’s and I’m still in my 40’s, bought my second house I rented on Airbnb already , earn on a monthly through passive income and got 4 out of 5 goals, just hope it encourages someone that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing is a grand choice I made. Great video! Thanks for sharing! Very inspiring! I love this....

[@eadad4371]

Glad I came across this comment section. I was struggling to decide what to do with a good amount of money in the bank doing nothing. I would be happy if you could advise me, as I am ready to go the passive income path.

[@skoopqueen.]

@@eadad4371 Alright so generally, investing requires higher knowledge. For this reason, It's important to have a solid support structure (financial consultant) to guide you through especially in asset picking. I operate with (REGINA LOUISE COLLARO) an investment advisor who partners with a licensed wealth management firm. For the record, the experience has been the best for my finance. She is quite popular for her services so you might have heard of her. She made me financially stable investing through her help, now I earn on a monthly basis through her passive income strategy...So I’ll advise you do get a good Investment advisor for yourself.

[@eadad4371]

@@skoopqueen. That’s great , your investment advisor must be really good,I have seen testimonies of people using the help of investment advisors in making them more financial stable. Do you mind sharing more info on this person?

[@skoopqueen.]

@@eadad4371 look her up on the internet and leave her a message she's quite popular for her services as she was recently featured on cnn. She can work with anyone irrespective of where their located

[@emeldcentor1474]

@@skoopqueen. I have had the intentions of starting investing. But I always thought it was late and I think I need to stop procrastinating. I will definitely 🔍 Regina Louise Collaro and see what she can advise .Thanks a lot . This was of so much help to me .

[@AnselTroy]

i bought my tiny homes for 35k each. Best airbnb business model in my opinion

[@avikatzir7888]

Hi, where did you buy the tiny homes ?

[@Jussomerando677]

I’d still like you to do a deep dive into rental arbitrage. I sat in on a free seminar and that was biggest thing that stood out to me. The fact the couple didn’t own any of their properties.

[@cbauman106]

I have 17 rental arbitrage units and love it. I do all mid term stays (30 day minimums). I rent apartments near the downtown hospitals in my city and sub lease them mostly to travel nurses who stay and work for 2-3 month contracts. True, I am not building equity in the real estate but I am building equity in a business that I can eventually sell for 3-5x the annual net cash flow. I do 2-3 year lease agreements and negotiate free rent up front.

[@oldcarproblems3332]

I love the travel nurse angle. Are you using furnish finder?

[@cbauman106]

@@oldcarproblems3332 mostly just airbnb!

[@Tman_z]

@@cbauman106 I’d like to ask you a couple questions and you’ll respond when you have free time. If you could please drop your Instagram

[@cbauman106]

@@Tman_z christianbauman88

[@oldcarproblems3332]

@@cbauman106 How are your margins doing 30-day minimums? I'm assuming they are less than doing STR stays?

[@DaySellsDetroit]

I feel like arbitrage is a great way to start generating the cash flow to make buying property a little easier.

[@jaceymartin4739]

Agree! I don't have the money to buy a place...so it is really the only option I have

[@sportsbettingstar]

Exactly. I don’t think most people who are interested in arbitrage see it as a long term business plan but rather a means to an end. When you’re living paycheck to paycheck all you need is more cash. This is an incredible way to double your monthly income so that buying a property ACTUALLY becomes feasible.

[@brennenhrebeniuk9661]

Yeah but you need to seriously run the numbers. Where im at the average 3 bedroom house goes for $150 a night on airbnb at 60% occupancy. The average 3 bedroom house for rent here is about $2200 a month meaning after utilities cleaning and furniture you would lose money not make money. I personally wouldnt consider anything less then a 30% return on investment meaning that if I wanted to make 30% in my market I would need to list my $2200 a month rental property for $250 per night which is not possible here

[@britfoxy]

@@brennenhrebeniuk9661 You can do Air BnB from anywhere, not just your area. My family & I recently rented an Air Bnb in San Antonio for about $300/nt. 🎃

[@brennenhrebeniuk9661]

@@britfoxy yeah Ik I appreciate that btw but most of Washington for me is not worth it. That would require moving which is not neccesarily an option at this present moment.

[@brucema38]

I've been doing this stuff for a long time. Buying and holding property is a horrible way to make money. It's a great way to build wealth, but a horrible way to make money. You are way better off working at McDonalds hourly if making money is your motivation. All that said, arbitrage rentals can make a good amount of money. You don't build wealth, but you do make monthly cash flow. Most young people I counsel financially don't make alot because they work for someone else. Cash flow is their problem. Most dont fall in love with working a second or third job to get rich. Owning rentals is sexy, and people think it's not alot of work. It's an easy way to trick people into working harder and longer. They aren't working for someone else, and they get the rewards for their extra efforts. Again, most don't want to sign up for extra effort... I let some young guys do abitrage rentals in my units. My question is this, how little of a profit is worth it. My guys were killing it during covid. Doubling or more my rent doing midterm rentals. Now the market is saturated, and I'm raising the rent. I'm thinking they will still net 300 plus per door minimum. Is that worth it? I did alot of deals that were skinnier that that when i was buying this stuff a long time ago. I'm interested in your opinion.

[@lorainda]

I think it’s a good starter way to get invested and learn if you can actually do it. Once you save enough money then you can purchase

[@lissam8988]

I'm a mother and I really would like to start short-term rentals through arbitrage I do not have a lot of money but I really need the cash flow at first. My plan would be to do the cash flow at first build my credit buy a duplex. And move up from there.

[@DonnaGalanti]

Good info. Thanks for the advice, experience, tips. Could definitely cut the video in half without all the extra unrelated commentary though. LOL

[@Locdintravels]

Please do a rental arbitrage deep dive!! Tips to get started??

[@EmmanuelC0403]

I just turned 20 a couple months ago with 2 years of co-hosting experience for 8 properties on AirBNB for my mom. I've been managing this co-host work while maintaining decent grades at UC Berkeley as well as building up my credit score to 750 and being a landlord by leasing vacant bedrooms in a home I use to commute to school. I want to get started on my own AirBNB business as I have so many great ideas I'd like to implement, but because I'm merely a co-host I'm limited in my abilities. I feel like there is so much potential if I could just add my magic to an AirBNB which is why I'd like to start one. I don't have a lot of disposable income and therefore wary of buying a home when there's an opportunity of just subletting. I'd like to start as this KZbinr did, but his discouragement makes me take second thoughts. Am I in the position where I've got a chance? Or am I being too hopeful?

[@petdrask]

Try it.🎉 don’t get discouraged

[@thelagirl777]

Do what’s in your heart. Don’t listen to anybody.

[@amandadeck2973]

I’d subscribe

[@BigD751]

Nice flex bro 😎 this is KZbin no one cares.

[@ShaneConQueso]

I can't help but think all these "apartment arbitrage bros" is largely why so many cities are restricting STRs entirely. The market is saturated and regular people are pissed because almost everywhere has a housing shortage and properties being scooped by Arbitrage Bros that would otherwise be available for people to live in leads to pissed off public demanding their local governments block this, and local governments are listening.

[@Vcize]

I think the arbitrage bros are a rounding error in this. Properties in popular STR spots sell for 10x gross revenue. It's down to a science at this point. That's buyers/investors setting the market. I would be surprised if arbitrage units represented more than 1% of the listings on Airbnb, and honestly I doubt it's even close to 1%.

[@Krazie-Ivan]

@@Vcize ...whatever the numbers are, the *impact* is unbalanced. apartments in the city are the most cost-effective solution for people with lower income (many of whom rely on transit/bikes/walkability), so an artificial shortage has an out-sized effect on the most basic of needs for the most vulnerable of us. whereas tourism is a luxury & a shortage is a minor inconvenience typically overcome by money (bigger place, further drive).

[@Vcize]

@@Krazie-Ivan I disagree. By far the towns that are most broken by Airbnb are ski towns, where there is essentially no arbitrage happening but the owners/investors have so limited the affordable housing for lower wage employees that the entire economy of the towns is broken. We see this in every ski town right now. It's not limited to ski towns of course, but any smaller destination town. If anything the impact is LESS in big cities, because there is so much inventory that a handful turning into airbnbs has a smaller affect than smaller towns where a handful of airbnbs destroyes the entire LTR industry. Manhattan still has 5000+ apartments available to rent, right now. Breckenridge has 1. Kanab (outside of Zion national park) has 0, and the local facebook page has 20 people a day posting that they're looking for a place to stay and the residents telling them there are literally ZERO available and blaming it all on the airbnb owners (and they're somewhat justified in that). The entire economies of these other destinations doesn't work. The entire towns can't exist without regulating airbnb, so regulations come crashing down extra hard there (look at what happened recently in Breck). And even in those big city markets, NYC, Nashville, Atlanta, etc. The people buying for Airbnb outpace the people renting for airbnb 100 to 1. I really think you could delete every arbitrage airbnb off the face of the planet and it would have zero impact on airbnb regulations. There are just too many people buying for STR for towns/cities to even notice the arbitragers. That is just my impression though. You could be right.

[@Krazie-Ivan]

@@Vcize ...entirely agree on the small towns issues, it's a serious problem. But I'm only talking on the big city mid/lower income apartment situation. Soaking up inventory at even a small scale has an effect these days, as not much has been built since '08. There was a time any renter could score a free month or two on a 12 lease, a cable package, and/or maybe some discounts with neighboring businesses... but occupancy/leases/hold squatting are so high those days are gone for now. It's tilted so far you have working families in major cities living in cars cause they can't afford a basic apt. Everyone is free to choose how they do biz, but they shouldn't fool themselves about how that decision plays out in the big pic. Arbitrage currently hurts people. Maybe I lean too far in some eyes, but I've been releasing my houses to the wild to build small PassivHaus vacation spots. It feels right to me, & I'm fine with nobody else seeing it that way. (Read your other replies too, & you're certainly in the know. Seem like a reasonable & compassionate person. GL, sincerely)

[@iamdexture5147]

I kind of took a risky hybrid approach. Couldn't qualify for a 2nd home due to job change from w2 to 1099 Ended up doing a lease option deal at 10% 🤢 interest planning to buy in another 2 years. $2300 a month in rent/deposit/expenses overall cashflow was $1500 ish a month on average. Once I refi I'll have$60k in equity and will cash flow $ 2200-2500 per month

[@Eastbaypisces]

how was that? and how did lease option work? so u already have a home then??

[@Ralith09]

We kinda started backwards. We own 8 units and now getting a few arbitrage units from a RE investor colleague.

[@buddybz6637]

I’m 13, and I’m trying so hard to understand all of this😅 ITS SO HARD SINCE I STARTED TODAY!!!but I got my big brother to help he’s been in it for a while, he also told me to try some other stuff but try something first then go to something else.

[@Frostye92]

Good stuff bro , keep up the determination and it'll pay off

[@malainfluencia126]

Dude the fact that you are watching this is a win anyway👍

[@Valhalla_Heathen]

Keep on learning, comrade! 🤘🏻 I wish I learned this stuff when I was a teen lol

[@rineditor7077]

You build equity with rental arbitrage. The LLC is where the equity is built. Businesses are sold on revenue multiples. So making 500k, and you get a 10x multiple, your business if sold is worth 5m. There is your equity.

[@lewisburton1852]

Sir, you are very delusional! Do you think any real businessman will buy a ticking time bomb?

[@sterlingmarshel6299]

congrats on the stupidest comment on business by far..

[@ea201]

Very good video. I’ve started with rental arbitrage but looking to scale into buying my own apartments. Well done 👍🏽

[@ABWEST]

Thank you for being transparent with us when it comes to rental arbitrage.

[@britfoxy]

You don’t have to buy new, expensive furniture. Lots of very nice used furniture out there.

[@DnDandVideoGames]

Just started watching your videos. I'm 100% going to start with retail arbitrage even though you are now against it. I don't want to stay there for a long period, but I do need to do something to make more money. I would just buy a house, but I don't have the money/too much debt. So, going to do RA, pay off the debt I use to spin it up, pay off my regular debt (maybe getting a few more RA), then buy regular real estate.

[@urbansmith6642]

Getting consent from the owners of places seem to be the hardest part of this. Reasons why I went with land hacks. Why not live on the land and rent another smaller home. Easy! Guys you should really look into host camp! #hostcamp

[@MyFunny123]

Please please make the arbitrage video. My hope is to start that way then be able to buy properties once i get the hang of it. It would be so helpful.. pretty please

[@ChantelTGill]

Ummm, yeah no. I was really interested in starting a rental Air B&B without owning property but the info you gave does make sense. To own property for an Air B&B, I just don’t have to money to do so. It’s difficult trying to start from the bottom.

[@tabbylivvy]

But you can start just like he did or wait and prolong everything. I’m moving forward and will cross those bridges when I approach them. Everybody isn’t sitting on stacks of money to just be buying property.

[@03a3.]

Please make the rental arbitrage how to video man. Buying isn't exactly feasible for all of us

[@HarmonyGaming01]

There's a lot of good reasons you stated. There's two big cons you missed: 1) HOA will prevent short-term rentals (e.g., minimum 6 month rental) or HOA does not allow sub-letting. 2) Breach of lease litigation if the Arbitrage Renter become insolvent during a "slow season" and is forced to stop paying rent.

[@therealzariyahnatalya]

please do a video on how to successfully do rental arbitrage

[@DearGulley]

Any specific tips for someone in the property management industry with real estate school knowledge? I heard someone say they offer their Airbnb business also as a property management company. Sounds like a good idea but unsure.

[@SustainabilitySquad]

I'm interested in a rental arbitrage video. Maybe would be interesting to do a video of what you would do if you had 20k or so to invest

[@Pinkgreentea1]

Pls do a full video on rental arbitage, for a newbie like me it could be a good starting point, I just moved in to a new city it's a tourist destination and education destination many prominent college here, so the city is very promising. Also I'm doing it with my own money and since I'm a house wife I will be the cleaning and the maintenance crew myself. So I would like to learn more on the subject.

[@alishamichelle166]

This would assume you wanted to tied up hundreds of thousands of dollars. Leveraging debt with no experience is way more risky. I think rental Arbitrage is best when you’re a beginner. Then buy your own property once you know what you’re doing?

[@philosophalex435]

I have a property in the state of Washington. I know zero but am interested in possibly turning my property into an air bnb.

[@mariahwhitley4133]

Can't you have tax benefits if you establish yourself as a business, have an LLC, and enter into a corporate lease?

[@ColdStone52]

Yes you can I was wondering why he didn’t cover this

[@stayer69]

You need to make the rental arbitrage video based on how to get started in Airbnb with a plan to work and save towards owning airBNB. You know, as a way to get started. Like on the job training. BAM!

[@DavidSmith-nl5jv]

About to sell a LTR and want to buy one or two STRs with the proceeds of the sell.

[@MeganHurst]

Did you end up doing the next video on arbitrage??? Some of us took the bait and we are in the midst of it. lol

[@jtg1465]

Too many ads here! But to the topic: how about bringing on Brian Page, the founder of “BNB Formula,” one of the first (of not THE first) course on rental arbitrage? Would be a great interview opportunity, especially in light of how things may have changed since he wrote the course.

[@hannahyager6879]

Thank you, Rob! Glad I stayed til the end because you totally validated my plan with rental arbitrage. I view it as simply a way in to the Airbnb game. My husband and I don't have enough money to make a down payment for a house in this crazy market, so we plan to use rental arbitrage only for the first year or two. Then we'll use all the money we made to make a down payment on purchasing a house.

[@jordanaz231]

any update? have you guys gotten an airbnb yet?

[@hannahyager6879]

@@jordanaz231 Not yet. The plan is to have it running by March 2023 so we can start out in the busy season. We live in FL, so we should catch the spring breakers and summer crowd around that time.

[@Eastbaypisces]

sounds like a good idea temporarily but i just dk how ppl can do it permanently , seems risky and stressful but its good u just doing it temp, let us know how it goes.

[@TexansForChrist]

Except property/apartment owners now want the profits in their pockets and are saying hell no to arbitrage pitches

[@jxg1652]

Buy nice not thrice... okay, I get the argument behind it - but cigarettes will burn a Ikea table just as much as a carpenter handmade table. Same with people that never heard of plates or cutting boards and cut their carrots directly on the table. Dogs chewing on furniture. Etc.

[@minettaarcher1500]

True, but when you furnish your STR with quality items, you're able to charge a higher price for a quality listing. And a higher sexurity deposit. You're able to attract a better quality guest, less likely to behave in a way that will destroy the items you've invested in...at least that's been my experience. I've done both and honestly have less headaches with my quality listings.

[@romanemp1985]

Equity and all that stuff is great, but when you have pennies to invest and want to start investing, Arbitrage is a decent avenue. You can't start anything without cash flow. You're thinking from the top. We're thinking from the bottom. No butt hurts feelings, but I think your perspective is skewed a little because you have the luxury of talking about equity, depreciation and so on.

[@ChiBusinessman]

That "air out of your balloon" landed the last hit on the nail for a "like" 😆

[@officerjimlahey]

Cringe

[@chasenewsome4850]

Definitely make that video bro, we would greatly appreciate the knowledge

[@shootermcgavin4999]

When they started money printing everyone who owned property got all the appreciation while all the renters got was more expensive rent and food. I think it's too late for most of us. The opportunity of the last 10-15 years won't happen again.

[@vettetravels]

I kinda disagree if it's for arbitrage using homes not apts. I'm just picking up two homes in my area for arbitrage and knowing the numbers on what my owned properties make and the need in my area, no way I won't be profitable. Now because I got my owned properties while interest rates were low the payments on those 300k plus homes are only 1500 and higher for a more recent one. The rental arbitrage homes range from 2300-2500 and my current properties normal gross 5000 and up each. I also only pay 20-40% of retail price for any supplies or furniture so that plays a part as I am a reseller a well. Considering in my area a house with a yard that takes pets will make 6-9k on a good month and I've never made under 4k, I'm willing to take the risk without having to buy in this market. I def do agree it's great to own as well but can be very profitable the other way...

[@abby4521]

what area if I may ask?

[@Claybraham91]

That guy falling off the ladder at 2:15 really threw me off. It looked bad.. I hope he is okay!

[@p.thriver5410]

Please do a step by step guide on how to do rental arbitrage successfully. It would be REALLY helpful for people just getting started, that don't have money down for the large down payments that are required for most houses in popular destination towns. But rental arbitrage is more within reach for most people and will allow people to grow into ownership and therefore appreciating assets over time by parlaying, as you mentioned. A lot of us want that video, Rob!

[@brendaorleans2798]

Yay!!

[@Eastbaypisces]

yea im curious how they do it like fr tho

[@jonanex]

Bruh really spitting facts, I had 2 units with great cash flow only realize one day I’m not gonna have them because I don’t own the apartment. So I’m really looking into buying a property now. Facts 💯 and funny video as well.

[@daisycamposguzman5862]

I would love to have you do a video about how to run a successful Airbnb arbitrage. LOVE A ARBITRAGE VIDEO

[@calmandcentred8059]

The ads. The ads. The ads. I came to learn about rental arbitrage but wow, way too many ads and video references. I subscribe to youtube premium and this was too much.

[@wakeup815]

New subscriber Brother thanks for the info because I wanna start my own rental property portfolio

[@flycow69]

I taught you said the landlord might not renew your lease after one year. Where is $15,000 a year for one apartment become $30,000 with 2 apartments and $45,000 income for 3 apartments . I was just following your ideas . Just kidding. By the way if the landlord like your concept he might just steal the idea by not renewing the lease to you and he become an Airbnb host. That is my 2 cents.

[@arnoldfrancis5266]

Pleaseee do a video on rental arbitrage!! Although I agree with what you’re saying in this video. I’m currently doing it in Nairobi kenya (2 active properties with a 3rd on the way). The plan is to transition into ownership but the cashflow generated through arbitrage is a great strategy to build cashflow to then invest in ownership. I’d loveeeee to see how to successfully build it under this method especially with the plan to trantion into ownership with enough cashflow

[@pascalxus]

in the long runs the equity has no gains. it's all inflation. dollar is crashing along with every other fiat. that doesn't negate the benefits though. it's hard to keep your value. real estate is a great way to keep that value.

[@usmanmalik5860]

I'd love to own multiple properties but how do you guys bypass the high Downpayment required for owning 2nd property... In my country it's 40% for 2nd property...

[@heather2418]

Wow that's crazy. If seller financing is a thing where you live that could work. Or maybe you could partner with a first time homebuyer so they get the discount but you both split profits. I'd check with a real estate attorney in your area, they should know what's legal and what other investors do.

[@brunetteXer]

it's not passive income though. it's a hospitality business.

[@josephcolafrancesco4060]

We work remotely. We're looking for a place that can serve as our primary residence during the school year, but also as a short-term rental during the summer and possibly holiday seasons. 🌞🎄 This way, we can enjoy vacations without worrying about paying both mortgage and rent! 🏖️💰 We'd love to connect with locals in the STR industry or anyone who help us find the perfect property that fits our unique needs. 🤝 If you have any recommendations, tips, or if you provide services related STR in the West Fort Worth Aledo area, please drop a comment how to connect.

[@cyrusjulian187]

Hey man, I'm a big fan of your videos and have learned a lot from several of them. But I've got to strongly DISAGREE with the whole concept of equity/appreciation. Similar to your thoughts on arbitrage, I'm not against it either but it should be looked at as icing on the cake vs part of investment strategy. Why? Because similar to the time period before the subprime crash of 07/08, prices had been going up a LOT because of easy lending. While loan programs have become more conservative since then, there's been a TON of liquidity, not even in the mortgage industry as much as the entire economy. Why do you think we have inflation right now? So you may think you have $1 million in equity now but suppose it's artificially inflated? Or put it another way. Let's say me and you both have lemonade stands and we each make a $1 per day. If we both go to the market to buy lemons, there should be a free market price on lemons based on supply/demand. Well supposed I suddenly got a million dollars from some investors who got it from their investors, well I'm now going to pay a helluva lot more for those same lemons pushing up the prices, thus SKEWING the prices. I'll end on this note. Try this as a thought exercise. If you're able to, look at the year 2006 or even early 2007 in any market and see what your portfolio was worth then compared to 2008/09. Then you'll truly see the value of cash flow vs appreciation. PS - Just thought of another point. I do appreciate your perspective on scaling out to 100s of arbitrage deals but I'd argue that by getting to that level, you're actually building equity IN YOUR BUSINESS since the EBITDA multiple (revenue multiple). For example a small burrito shop will sell at a lower multiple compared to say Taco Bell as there's professional mgmt, systems in place, economies of scale. Something to consider if "equity" is an important part of your strategy. Peace

[@wildwestadventures3583]

I think arbitrage is a great way to get cash flow going so one could buy a house to build equity. In my situation, I can't get a FHA loan because I am self employed so I would have to come up with 10 percent downpayment and closing costs plus show the lenders I have 6 months of mortgage payments saved up as assurance. And this is in California's ridiculously high market. So with my normal $2500 take home income, it is impossible for me to purchase a house. Arbitrage could potentially get me the cash flow to get into a house.

[@ashleygibson4322]

What if I spent all my capitol in 3 AirBNBs and my only option is to arbitrage?

[@phizz600]

Yup he just gave us a whole wealth strategy for the free.

[@tanveerali1]

Wish you can avoid all the dramatic stuff or reduce it, its annoying.

[@karlyrutherford7859]

I came to learn about rental arbitrage but now I want to hear more of your vocals

[@MrTylerthecaveman]

Let's make it harder and harder for the normal person too live. Let's make smaller home un affordable. Let's make simple living complex. The human condition is we fuck ourselves over constantly then point the finger when our way of living collapses

[@cristianmihaltan1985]

Hey Rob! Cristian here, just started Host Camp, very excited start my real estate journey! Please do a deep dive into rental arbitrage. I agree with what you're saying 100%, this is not what I want to do long term and I might not even look to scale my business with this model at all... BUT I need to start getting some cash flow to fund deals and I think this is a good way to do that at lower risk while also getting my feet wet and learning the in's and out's of STRs

[@ivettelopez9138]

I'm with her I would also like to see this on the host camp 😁

[@soldbuydaniel]

I will like to get in the game too I just need help to start.

[@landonpond8995]

I agree with everything you’ve brought to the table here. However, as a 19 year old college student with limited funds, I think arbitrage is a great place to start. My goal is to make enough cash flow from arbitrage that I can begin to purchase property. All of the problems you listed are things I’ve seen from the outside looking in but for my situation I don’t think it makes sense to buy one property that I’ll barely be able to afford and barely make profit on when I can likely afford three separate arbitrage units.

[@Al-xi2hq]

@robuilt isn’t any business about cash flow so isn’t airbnb abridge different because it involves properties?

[@natt3015]

Hi Rob, would you please do a video on how Los Angeles 30 days rental performs and how do you attract these longer term guests? Are these listings still on Airbnb or somewhere else?

[@BigD751]

One other pro is a quick exit strategy and you're not responsible for maintenance.

[@Curiouslycurious008]

I got my llc and I have found properties that do corporate housing can I still do air bnb under a corporate lease because my business is property and retail management. Or would I need a sub lease under the corporate lease .

[@Redshirtvmc]

Hey Rob! I think it would be really interesting to hear your take on how to do rental arbitrage well. I don’t think it will take away from your position on the benefits of purchasing property to rent but will just better inform all of your listeners on all models of Airbnb rentals. After all wouldn’t you rather them hear it from you where you can also warn them of the risks and tell the full truth than they go to some “yacht mansion beach retirement” guru? Thanks for sharing the knowledge and convincing me to close on my first property just last month! Looking forward to the process

[@katelynalmeda]

Great video. As a host coach, I'm asked about rental arbitrage daily. It is how I started as an Airbnb host, so I totally get it. In my opinion though, the cons outweigh the pros. Not only were the owners benefitting the most, by far (and building equity), I was also taking away housing from local long term renters. My own neighbors, who I loved, were being kicked out of their places because property owners were seeing what I (and many others were doing) and spiking the rent. Not cool.

[@Eastbaypisces]

true i didn't think of that, so ppl could be mad at you for doing that, how long did u do it for? and what would u suggest doing then??also what city were u in doing this in???

[@fisherzz1000]

Ya but what’s the difference between your own Airbnb and a property you arbitrage? Whether it’s arbitrage or you own the property, you’re still taking away housing from long term rentals and causing rent to spike.

[@katelynalmeda]

@@fisherzz1000 Great question. With arbitrage, because you're making a lot less, you have to scale more quickly to see decent profit. Most folks who do rental arbitrage have many, many units. Units that are marketed toward long term renters but arbitragers market their services/offer more than asking rent to the owner.

[@fisherzz1000]

Oh I see. I thought you were saying earlier you were an Airbnb host for short term rentals, but you are long term rentals. Got it!

[@katelynalmeda]

@@Eastbaypisces I did arbitrage for a little over 3 years, in San Diego. I had 4 arbitrage units there. The very best thing you can do is rent spaces that you own. If you aren't able to purchase yet though, I suggest co-hosting over arbitrage.

[@almad1294]

I had considered rental arbitrage before but I’ve heard that there can be a lot of problems with rental units, so I decided it would probably be best to save for a down payment.

[@obli475]

the meme: "Stop it, get some help" Me: *Was harmonizing*

[@axeleerola9740]

But how am I supposed to buy a property as a 18yr old and start renting them...

[@LeslieBanfe]

We have a couple interested parties who will arbitrage out property and manage them from out of state. Is that a good idea? Hopefully we never have to deal with eviction again, but is it doable if they live out of state? Thanks

[@heather2418]

I personally would not but your mileage my vary. Personally, letting someone arbitrage out of state sounds like more risk than I'm ever willing to take with my investments. And CAN they evict? I don't know. I wouldn't trust them to know local law though so it's kinda moot. Why are you even looking at out of state?? There's so many in every state you can for sure find someone who has experience in your LOCAL market, let alone your state. Good luck to you.

[@jeremyschmidt6759]

Yes you need to do a "Rental Arbitrage Deep Dive". Compelling reason? Chipotle. Lots. And lots. Of Chipotle.

[@wakeup815]

So what I got from this video is to own the properties you put on ARBNB

[@benlime1235]

I always thought rental arbitrage was basically impossible because most mortgages won't allow it. If anything, this made it seem more possible than I thought and it sounds like a great way to make 24-36k in a year to put towards buying a rental property.

[@MARTIIAN_]

Hey man how’s your progress going?

[@ColdStone52]

What do you do with all your properties?

[@Emma_Taylor]

This sounds like subleasing, what is the difference?

[@sterlingmarshel6299]

it is. the new people to the business think Arbitrage sounds sexier

[@layoungdiddy]

I would think for this to work well you have to be in a city and an area where people would pay a lot to rent an air b&b. You’re not finding apts in LA for $1500 a month that’s in high traffic areas that this can work even city’s like Houston like the downtown area where this could work the rent is not going to be $1500.

[@Son_of_Santiago]

Bro I tried to watch this but I feel like every ten seconds u promoted something lol you make great videos but I couldn’t even finish this

[@juquendo]

Would you say besides your course. Is there any good ones out there with a good blueprint to follow? For ex. Like Dr Chau’s one

[@rome_100k]

Did you do the deep dive into rental arb??

[@benjimentv]

Basically investing in rental properties is better in the long run.

[@chrisklein9110]

Rob -- You must have a video planned to discuss the recent Aribnb platform changes, no??

[@akdune]

How much does your mentorship program cost?

[@DavidSmith-nl5jv]

Rob, do you still do consulting calls?

[@Robuilt]

No, I don't sadly. I shut down that business to focus on my mentorship program. I do miss the early days though!

[@raex839]

'guru' is a word that comes from my native language hindi and it literally has the same meaning as teacher/counsellor/mentor😅