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The Ramsey Show Highlights

Is Airbnb Arbitrage a Good Idea?

The Ramsey Show Highlights

Ramsey Network

Investing, Self-improvement, Education, Business

4.5840 Ratings

🗓️ 17 March 2024

⏱️ 8 minutes

🧾️ Download transcript

Summary

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Transcript

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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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