Airbnb Arbitrage: High Cash Flow, But How To Convince a Landlord?

Don’t have enough capital to own property? Enter Airbnb arbitrage, the popular investment strategy that allows you to rent out someone else’s property for a profit. Of course, there are a few challenges that come with this. Namely, you’ll need to convince your landlord that it’s a good idea! As always, Ashley and Tony are back with some important tips.

In today’s episode of Rookie Reply, we’re breaking down Airbnb arbitrage, and weighing the pros and cons on both sides of the arrangement. We also touch on the best liability protection strategies, using a HELOC for a down payment, and when it might be advantageous to buy a turnkey property versus a distressed property. Finally, we tackle the subject of tax planning and how hiring a CPA could help you save a fortune come tax season!

If you want Ashley and Tony to answer a real estate question, you can post in the Real Estate Rookie Facebook Group! Or, call us at the Rookie Request Line (1-888-5-ROOKIE).

~~~~
Join BiggerPockets for FREE:
https://www.biggerpockets.com/signup?utm_source=owned_media
~~~~
Join the Real Estate Rookie Facebook Group:
https://www.facebook.com/groups/realestaterookie
~~~~
Find an Investor-Friendly Agent in Your Area:
http://biggerpockets.com/agentmatch
~~~~
Try the BiggerPockets Rental Rental Property Calculator:
https://www.biggerpockets.com/rental-property-calculator?utm_source=owned_media
~~~~
How to (Legally) Avoid Taxes by Investing in Real Estate (Episode #255):

How to (Legally) Avoid Taxes by Investing in Real Estate

~~~~
Don’t Lose Your Portfolio to Lawsuits! Here’s How to Protect Yourself (Episode #105):

Don’t Lose Your Portfolio to Lawsuits! Here’s How to Protect Yourself

~~~~
Asset Protection for Rookies: 7 Wealth-Saving Answers from an Expert (Episode #106):

Asset Protection for Rookies: 7 Wealth-Saving Answers from an Expert

~~~~
Growing Your Portfolio with Turnkey Investing Whitney Hutten and Lance Robinson (Episode #29):

Growing Your Portfolio with Turnkey Investing with Whitney Hutten and Lance Robinson

~~~~
It’s Not All About Cash Flow: 4 Ways Real Estate Makes You Rich (Episode #224):

It’s Not All About Cash Flow: 4 Ways Real Estate Makes You Rich

~~~~
Connect with Ashley and Tony on BiggerPockets:
Ashley: https://www.biggerpockets.com/users/echopm?utm_source=youtube&utm_medium=description&utm_campaign=none
Tony: https://www.biggerpockets.com/users/tonyr75?utm_source=youtube&utm_medium=description&utm_campaign=none
~~~~
Shoot Ashley and Tony a Question on Instagram!
@wealthfromrentals or https://www.instagram.com/wealthfromrentals/
@tonyjrobinson or https://www.instagram.com/tonyjrobinson/

Episode #270

Show notes at: https://www.biggerpockets.com/blog/rookie-270?utm_source=youtube&utm_medium=description&utm_campaign=none

00:00 Intro
05:26 Hiring a CPA for Tax Planning
13:37 Pros and Cons of Airbnb Arbitrage
23:28 LLCs vs. Umbrella Insurance Policies
29:34 Buying Distressed vs. Turnkey Properties
35:04 Using a HELOC for a Down Payment