Is Airbnb Arbitrage a Good Idea?
The Ramsey Show Highlights
Ramsey Network
4.5 • 840 Ratings
🗓️ 17 March 2024
⏱️ 8 minutes
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| 0:00.0 | Brought to you by the Every Dollar app. Start budgeting for free today. |
| 0:06.5 | Opel kicks us off in D.C. Opal, welcome to the show. |
| 0:11.5 | Hi, guys. Thank you for taking my call. |
| 0:13.7 | Sure. How can we help today? |
| 0:16.8 | So I am recently out of the military, and I currently go to school full-time while working. |
| 0:22.6 | My goal is to apply to medical school next year, but I want to graduate with no student loan debt. |
| 0:28.0 | So my question would be, would Airbnb arbitrage be a good idea for an additional income? |
| 0:35.1 | Oof. |
| 0:36.7 | Anytime the word arbitrage has spoken out loud, a puppy stops wagging its tail. |
| 0:41.1 | Oh my gosh. |
| 0:42.0 | You know what I mean? |
| 0:44.3 | It's very risky. |
| 0:46.8 | And I assume you know that because you're calling us saying, is this a good idea? |
| 0:50.9 | I do. |
| 0:52.5 | Where do you get the idea that this is going to be the ticket? Well, I do. Where do you get the idea that this is going to be the ticket? |
| 0:55.0 | Well, I work part-time right now while going to school, and I'm a reservist still. |
| 1:03.0 | And I guess I'm just looking for a way to up my income, but I don't really have the time because of everything that I'm doing. |
| 1:12.8 | Okay. And to make sure we're on the same page about the definition of arbitrage here, |
| 1:17.0 | you're talking about, hey, I rent from a landlord, and then I'm going to list this place that I'm |
| 1:23.1 | renting on Airbnb, and then I will make a spread. So if I'm paying $1,200 a month and rent, I'm going to make $1,600 through Airbnb net of fees, and I'll make that $400 spread. |
| 1:35.3 | Yes, correct. Okay. Number one, it's hard to find any landlord who will agree to this. And number two, doing it behind their back is what's known as |
| 1:45.3 | illegal. And so that therein lies the biggest problem is just finding a situation. Sub leasing is even |
... |
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