588: Rental Arbitrage: $700K Renting Out Other People's Properties

The Side Hustle Show

Nick Loper

Business, Education, Entrepreneurship, How To

4.7 • 1.6K Ratings

🗓️ 30 November 2023

⏱️ 60 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Making money in real estate typically requires owning the property, right? Coming up with a large down payment, securing financing, dealing with tenants, handling maintenance and repairs. The barriers to entry aren’t exactly low. But what if you could skip all that and still bring in serious cash flow by renting out apartments and homes without buying them? When Richie Matthews and his wife were looking to supplement their seasonal events business in late 2019, rental arbitrage seemed like an ideal side hustle. Little did they know that just a few months later, that tiny side hustle would quickly scale into a business managing 60 units and generating over $2.5 million in revenue and $700k in profits. He now runs his company, iStayUSA.com. Tune in to Ep 588 of The Side Hustle Show to: Test unfamiliar models with tiny experiments before going “all in” Stay nimble and embrace opportunities, even in uncertainty Build scalable systems and processes early on Diversify marketing channels and revenue streams Focus on profitability metrics rather than solely revenue growth Full Show Notes: Rental Arbitrage: $700k Renting Out Other People's Properties Get your personalized money-making playlist here!

Transcript

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0:00.0	This guy made 700 grand last year renting out other people's properties.
0:05.0	What's up? What's up? Nick Loper here.
0:07.0	Welcome to the Side Hustle show, a proud member of the entrepreneur podcast network.
0:12.0	If you're looking for ways to make extra money and build a business in Lün. A
0:15.0	P
0:18.0	Pretty crazy case study for you are in the right place. Pretty crazy case study for you today.
0:20.0	We're talking about a market where a lot of cash is already flowing,
0:23.6	Airbnb in this case, and how to get some of that cash flowing to you
0:28.3	without having to have strangers in your spare bedroom or investing in real estate
0:32.2	yourself. It's called a rental arbitrage, basically
0:34.9	locking in long-term leases and then turning him into short-term rentals with the landlord's permission, of course,
0:41.2	and then profiting on that spread. My guest has gone big into this
0:45.0	space in the last three years, scaling into 60 units, over two and a half million dollars
0:49.8	in revenue last year, which took out to that 700 grand in profit from I stay USA.com
0:56.0	Richie Matthews welcome to the Side Hustle show. Thank you Nick. Thanks for
1:00.6	inviting me. Absolutely. So stick around in this one to learn how to find cash flowing markets, how to get landlords to agree to this.
1:08.0	That's probably the first step, and then how to build in some smart automations to make it a pretty hands-off business once it's all up and running.
1:15.0	I want to start with this landlord piece because if these are not properties that you own,
1:20.0	obviously you've got to find this long-term lease that's being advertised or this long-term rental that's being advertised and then come in kind of cold. Landlord doesn't owe you from the next guy to say, yeah, we're open to this company renting our place and guaranteeing us the rent.
1:34.4	I guess that's the benefit.
1:35.4	Like I don't have to deal with tenants or something.
1:38.0	But then lots and lots of rejection on this front in the first months and then finally
	...

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