BiggerPockets Real Estate Podcast 520: $47k/Month in Rent, 0 Doors Owned | Rookie Takeover w/ Rafael Loza
Oct 19, 2021
Join Rafael Loza, a real estate investor who transitioned from a night shift job to mastering rental arbitrage, as he shares his journey to managing 24 short-term rental units. He reveals how rental arbitrage allows low entry costs into real estate investing while providing significant cash flow. Discover the art of pitching landlords, the challenge of adapting during the pandemic, and strategic pivots that led to success. Rafael's story highlights the blend of immediate profits and long-term wealth building in the ever-evolving rental market.
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Rafa's First Arbitrage Deal
- Rafael Loza, initially working at a casino, wanted to enter real estate but found traditional methods impractical in his high-cost area.
- Discovering short-term rental arbitrage through his partner, he leased a two-bedroom apartment, furnished it, and listed it on Airbnb.
Arbitrage: Benefits and Risks
- Arbitrage offers high cash-on-cash returns due to low initial investment, ideal for those seeking quick cash flow.
- However, it carries risks, as you are at the landlord's mercy, potentially facing eviction or non-renewal of lease.
Pitching Landlords on Arbitrage
- Focus on the benefits for landlords, such as consistent occupancy, property care, and attracting reliable tenants (business travelers, nurses, families).
- Avoid emphasizing "short-term rentals" or "Airbnb"; instead, highlight the types of guests you will accommodate.
