
Airbnb Arbitrage: Make $250k/Month on Airbnb Without Owning a House | Colin Wright
We're Gonna Make It
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Discover the simplicity and benefits of Airbnb arbitrage, from subletting to listing properties on platforms like Airbnb. Learn about the advantages for property managers and landlords in maintaining consistent rent and property upkeep.
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Speaker 1
All right, so how much money do you make? About $250,000 a month. Nice, what do you do? Airbnb arbitrage is my main business right now. Airbnb arbitrage. Yes, what does that mean? We're subletting properties from landlords and property managers, furnishing them, hiring cleaning teams and basically putting them on short-term rental platforms like Airbnb and renting them out. So you're literally gonna go rent an apartment. So you'll get like a 12-month lease or something. Exactly, and then you just will list that on Airbnb. Yeah, it's pretty simple when you think about it like that. A lot of people think it's super complicated, but it's really not. It's just that. It's getting permission from a landlord, furnishing the apartment and then putting it on Airbnb. So apartment, buildings like let you do this? Yeah, actually that's another question I get a lot of time. Like people think it's so complicated, but here in the US there seems to be a lot of vacancies, especially in apartment complexes. So it's great to target those. They'll even offer me free rent a lot of the time to take a unit from them. Just that they'll allow Airbnb. They're like here, we'll give you four A weeks free rent and do Airbnb in it for us please. It kind of seems like a no-brainer because then they get your rent, so they're getting money. And then you, since you can charge a little more for short-term rentals, that's your spread basically. Yes, if they understand that we're gonna be making a little bit of profit on the unit, so they're basically guaranteed their rent. So a lot of property management companies and landlords are having issues with tenants paying rent right now. So they know by me operating the business out of the unit that they're guaranteed to get that rent every month. I'm taking care of routine maintenance. It's being cleaned on the regular, we're background checking guests and that they know that their unit's safe in my hand. Okay, so this is something you have to be really communicative with each specific apartment building that you're probably working with though. It's not like a, you can't just, I feel like do a lot of apartments like Banned, Airbnb in general for all residences? It just depends on the market. There's lots of buildings in every different city across America that allow it and some don't, right? Like a condo buildings where you have a lot of ownership in there probably gonna have some sort of HOA on those against doing Airbnb. That makes a lot of sense. So, but it's probably not something, this feels like this is what you ideally want to do because you don't have to take any risk up front, to put down payments down on the building itself. Like it's sort of just find an apartment that you like, I guess you kind of have like a little flavor in your brand, how you furnish it or whatever, to attract people and maybe charge little more based on how nice it feels. But there's like no risk in the sense of you don't have to put money down, get a loan from a bank, you don't have to prove for credit, I guess maybe for an apartment. But it depends, yeah. And you surprise, sometimes I don't get asked to income more credit. That's wild. It depends on the complex. That's wild. But as you were saying, the risk factor, that's what I love about the business because I've been in, you know, I'm in multifamily ownership and long-term real estate investments, they cost a lot to purchase upfront. There's a lot of risk with non-paying tenants, you know, tenants that don't take care of your stuff, market fluctuations, interest rates, all this stuff. Gotcha, you're fighting against. With Airbnb arbitrage, it's really no risk. Like you said, it costs very little to furnish. You can get your capital back relatively quick. And like I said, you're not gonna worry about tenants not paying because they've cried before, before they stay and you're making a premium on the short term of comedy. How much is like an average apartment that you're going for?
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