520: $47k/Month in Rent, 0 Doors Owned | Rookie Takeover w/ Rafael Loza 55:08

    <p>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/"><strong>Ashley Kehr</strong></a> and <a href="https://www.instagram.com/tonyjrobinson/?hl=en"><strong>Tony Robinson</strong></a>, hosts of the <a href="https://www.biggerpockets.com/real-estate-rookie-podcast"><strong>Real Estate Rookie Podcast</strong></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"><strong>rental arbitrage</strong></a>.</p><p>Rental arbitrage is a form of subletting that <strong>allows long-term tenants to make massive cash flow off of </strong><a href="https://www.biggerpockets.com/blog/analyze-short-term-rental"><strong>short-term rentals</strong></a>. Someone who’s done this to an extreme is <a href="https://www.instagram.com/rafa_l0za/?hl=en"><strong>Rafael Loza</strong></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"><strong>quit his job</strong></a><strong> and scale to fourteen units in just nine months</strong>.</p><p>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 <strong>forty-seven thousand dollars in revenue in one month </strong>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"><strong>short-term rental market</strong></a>. He has his sights set on ownership, but now he’s simply raking in the short-term stacks.</p><p>In This Episode We Cover:</p><p><strong>Rental arbitrage </strong>and why it’s a<strong> low-cost way to get into real estate investing</strong></p><p><a href="https://www.biggerpockets.com/blog/2015-07-21-whataes-important-aecf-appreciation">Short-term<strong> cash flow vs </strong>long-term <strong>appreciation</strong></a> and combining the two</p><p>The <strong>startup costs</strong> it takes to create an arbitrage empire</p><p>How to <strong>pitch landlords</strong> on using their properties for short-term rentals</p><p><strong>Negotiating leases </strong>and adding a <a href="https://www.biggerpockets.com/blog/glossary/sublease"><strong>subletting clause</strong></a> to any lease you undertake</p><p>Pivoting when your business hits a wall and combing back stronger</p><p>And So Much More!</p><p>Links from the Show</p><p><a href="https://www.biggerpockets.com/forums">BiggerPockets Forums</a></p><p><a href="https://www.biggerpockets.com/youtube">BiggerPockets Youtube Channel</a></p><p><a href="https://www.instagram.com/beardybrandon/?hl=en">Brandon Turner's Instagram</a></p><p><a href="https://www.instagram.com/tonyjrobinson/">Tony's Instagram</a></p><p><a href="https://instagram.com/wealthfromrentals">Ashley’s Instagram</a></p><p><a href="https://www.youtube.com/channel/UCCA5VL6_GTfTY9I-V7QUcJw">Real Estate Rookie Youtube Channel</a></p><p><a href="https://www.airbnb.com/">Airbnb</a></p><p><a href="https://www.vrbo.com/">Vrbo</a></p><p><a href="https://www.biggerpockets.com/rookie">The Real Estate Rookie Podcast</a></p><p><a href="https://www.joinclubhouse.com/">Clubhouse</a></p><p>Check the full show notes here: https://biggerpockets.com/show520</p>
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