The hosts look and sound a little different today. There are no beards and we haven’t heard one metaphor containing jiu-jitsu lingo... That’s because <a href="https://www.instagram.com/wealthfromrentals/" rel="noopener noreferrer" target="_blank">Ashley Kehr</a> and <a href="https://www.instagram.com/tonyjrobinson/?hl=en" rel="noopener noreferrer" target="_blank">Tony Robinson</a>, hosts of the <a href="https://www.biggerpockets.com/real-estate-rookie-podcast" rel="noopener noreferrer" target="_blank">Real Estate Rookie Podcast</a> have taken over the BiggerPockets Real Estate Podcast! Ashley and Tony regularly talk about how rookies can get their first (or next) deal, but today they’re combining expertise to talk about something more controversial: <a href="https://www.biggerpockets.com/blog/airbnb-arbitrage" rel="noopener noreferrer" target="_blank">rental arbitrage</a>.Rental arbitrage is a form of subletting that allows long-term tenants to make massive cash flow off of <a href="https://www.biggerpockets.com/blog/analyze-short-term-rental" rel="noopener noreferrer" target="_blank">short-term rentals</a>. Someone who’s done this to an extreme is <a href="https://www.instagram.com/rafa_l0za/?hl=en" rel="noopener noreferrer" target="_blank">Rafael Loza</a>. 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 <a href="https://www.biggerpockets.com/blog/should-you-quit-your-9-5-job-for-real-estate" rel="noopener noreferrer" target="_blank">quit his job</a> 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 <a href="https://www.biggerpockets.com/blog/short-term-rental-trends-2021" rel="noopener noreferrer" target="_blank">short-term rental market</a>. He has his sights set on ownership, but now he’s simply raking in the short-term stacks.In This Episode We Cover:Rental arbitrage and why it’s a low-cost way to get into real estate investing<a href="https://www.biggerpockets.com/blog/2015-07-21-whataes-important-aecf-appreciation" rel="noopener noreferrer" target="_blank">Short-term cash flow vs long-term appreciation</a> and combining the twoThe startup costs it takes to create an arbitrage empireHow to pitch landlords on using their properties for short-term rentalsNegotiating leases and adding a <a href="https://www.biggerpockets.com/blog/glossary/sublease" rel="noopener noreferrer" target="_blank">subletting clause</a> to any lease you undertakePivoting when your business hits a wall and combing back strongerAnd So Much More!Links from the Show<a href="https://www.biggerpockets.com/forums" rel="noopener noreferrer" target="_blank">BiggerPockets Forums</a><a href="https://www.biggerpockets.com/youtube" rel="noopener noreferrer" target="_blank">BiggerPockets Youtube Channel</a><a href="https://www.instagram.com/beardybrandon/?hl=en" rel="noopener noreferrer" target="_blank">Brandon Turner's Instagram</a><a href="https://www.instagram.com/tonyjrobinson/" rel="noopener noreferrer" target="_blank">Tony's Instagram</a><a href="https://instagram.com/wealthfromrentals" rel="noopener noreferrer" target="_blank">Ashley’s Instagram</a><a href="https://www.youtube.com/channel/UCCA5VL6_GTfTY9I-V7QUcJw" rel="noopener noreferrer" target="_blank">Real Estate Rookie Youtube Channel</a><a href="https://www.airbnb.com/" rel="noopener noreferrer" target="_blank">Airbnb</a><a href="https://www.vrbo.com/" rel="noopener noreferrer" target="_blank">Vrbo</a><a href="https://www.biggerpockets.com/rookie" rel="noopener noreferrer" target="_blank">The Real Estate Rookie Podcast</a><a href="https://www.joinclubhouse.com/" rel="noopener noreferrer" target="_blank">Clubhouse</a>Check the full show notes here: https://biggerpockets.com/show520See Privacy Policy at <a href="https://art19.com/privacy" rel="noopener noreferrer" target="_blank">https://art19.com/privacy</a> and California Privacy Notice at <a href="https://art19.com/privacy#do-not-sell-my-info" rel="noopener noreferrer" target="_blank">https://art19.com/privacy#do-not-sell-my-info</a>.

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520: $47k/Month in Rent, 0 Doors Owned | Rookie Takeover w/ Rafael Loza

BiggerPockets Real Estate Podcast