270: Rookie Reply: Airbnb Arbitrage, Turnkey Rentals, and When to Use a HELOC

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.8 • 1.7K Ratings

🗓️ 18 March 2023

⏱️ 46 minutes

🔗️ Recording | iTunes | RSS

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Summary

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). In This Episode We Cover How to get into real estate without owning property Why a landlord would agree to Airbnb arbitrage (and how to convince them) The MASSIVE tax savings of hiring a CPA for tax planning Using a HELOC for a down payment on a long-term rental property When it makes sense to purchase a turnkey property versus a distressed property LLCs, umbrella insurance policies, and the best strategies to protect yourself from liability And So Much More! Links from the Show Find an Investor-Friendly Real Estate Agent Real Estate Rookie Facebook Group Real Estate Rookie Podcast Airbnb BiggerPockets Rental Property Calculator How to (Legally) Avoid Taxes by Investing in Real Estate Don’t Lose Your Portfolio to Lawsuits! Here’s How to Protect Yourself 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 Asset Protection for Rookies: 7 Wealth-Saving Answers from an Expert MLS The Real Estate Podcast TurboTax Connect with Ashley and Tony: Ashley's BiggerPockets Profile Ashley's Instagram Tony's BiggerPockets Profile Tony's Instagram Check the full show notes here: https://www.biggerpockets.com/blog/rookie-270 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email: [email protected] Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is Real State Rookie episode 270.
0:04.8	So, there definitely are, I think, a lot of positives and the disadvantages I would
0:09.2	oppose that question to the person that's doing the arbitrage or asking to do the arbitrage
0:13.1	and see what their responses are.
0:14.5	But if you bring up the concerns about maintenance and repairs and they're just kind of like
0:17.6	stumbling, they don't have a good response for you and don't work with them.
0:20.4	If you bring your concerns around liability and in what they're doing to minimize that or
0:24.5	mitigate that risk, then don't work with them.
0:26.5	So, pose your questions to that person and see what their responses are and feel confident
0:30.2	with what they're saying.
0:31.3	I think it's a win-win for both of you guys.
0:33.5	My name is Ashley Care and I'm here with my co-host, Tony Robinson.
0:37.3	And welcome to the Real State Rookie podcast where every week, twice a week, we bring you the
0:41.6	inspiration, motivation, and stories you need to hear to kickstart your investing journey.
0:45.7	Today, I want to shout out someone by the username of Lukester 88891.
0:50.4	Lukester left to say five star review on Apple Podcasts.
0:53.1	This has an encouraging podcast.
0:54.8	Tony and Ashley's podcast is extremely informative and encouraging.
0:58.5	Thank you for creating a space to give people like me the knowledge and extra nudge
1:02.7	to feel confident about investing in Real State.
1:04.8	Luke, we appreciate you.
1:06.2	And for all of our rickies that are listening, if you have not yet taken the two minutes and
	...

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