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Rookie Reply: Rental Arbitrage 101 and How to Invest Your Home Equity

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Manage episode 437020277 series 2632451
Content provided by BiggerPockets. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by BiggerPockets or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://player.fm/legal.

You know real estate investing is a great way to build wealth, but maybe you fear you don’t have the resources to start. Well, there’s a way to create cash flow without money OR rentals—rental arbitrage! This low-risk, rookie-friendly strategy could be your gateway into the world of real estate. In today’s episode, we’ll cover the pros and cons of this strategy and whether it still works in 2024!

Welcome back to another Rookie Reply! If you’re a homeowner looking to buy your first rental property, tapping into your home equity gives you an enormous advantage. We’ll show you how to quickly build and scale a real estate portfolio through the BRRRR method (buy, rehab, rent, refinance, repeat), and you’ll also learn when to use a cash-out refinance or get a home equity line of credit (HELOC) instead. Finally, inheriting tenants puts you in a difficult spot. How should you introduce yourself to tenants? What’s the best way to raise rents on long-term tenants? Stick around to find out!

Looking to invest? Need answers? Ask your question on the BiggerPockets Forums!

In This Episode We Cover:

How to cash flow WITHOUT money or rentals (and whether this strategy works in 2024)

The pros and cons of Airbnb arbitrage (and costly mistakes to avoid!)

The BEST ways to leverage your home equity as a new investor

Using the BRRRR method (buy, rehab, rent, refinance, repeat) to build your portfolio

When to use a cash-out refinance versus a home equity line of credit (HELOC)

Crucial steps to take when inheriting tenants with your rental property

How to get tenants to agree to rent increases using the “binder method”

And So Much More!

Links from the Show

Ashley's BiggerPockets Profile

Tony's BiggerPokckets Profile

Join BiggerPockets for FREE

Ask Your Question on the BiggerPockets Forums

Buy the Book “Short-Term Rental, Long-Term Wealth”

Find Investor-Friendly Lenders

See Ashley and Tony at BPCON2024 in Cancun!

BiggerPockets Real Estate - Episode 520: $47K/Month in Rent, 0 Doors Owned | Rookie Takeover w/ Rafael Loza

Get FREE Landlord Forms by Becoming a BiggerPockets Pro Member

Find Landlord-Tenant Laws in Your State

(00:00) Intro

(00:57) What Is Rental Arbitrage?

(10:53) HUGE Arbitrage Mistakes to Avoid

(14:50) How to Invest Your Home Equity

(21:38) Inheriting Tenants & Raising Rents

(31:58) Send Us Your Question!

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-451

Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com.

Learn more about your ad choices. Visit megaphone.fm/adchoices

  continue reading

457 episodes

Artwork
iconShare
 
Manage episode 437020277 series 2632451
Content provided by BiggerPockets. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by BiggerPockets or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://player.fm/legal.

You know real estate investing is a great way to build wealth, but maybe you fear you don’t have the resources to start. Well, there’s a way to create cash flow without money OR rentals—rental arbitrage! This low-risk, rookie-friendly strategy could be your gateway into the world of real estate. In today’s episode, we’ll cover the pros and cons of this strategy and whether it still works in 2024!

Welcome back to another Rookie Reply! If you’re a homeowner looking to buy your first rental property, tapping into your home equity gives you an enormous advantage. We’ll show you how to quickly build and scale a real estate portfolio through the BRRRR method (buy, rehab, rent, refinance, repeat), and you’ll also learn when to use a cash-out refinance or get a home equity line of credit (HELOC) instead. Finally, inheriting tenants puts you in a difficult spot. How should you introduce yourself to tenants? What’s the best way to raise rents on long-term tenants? Stick around to find out!

Looking to invest? Need answers? Ask your question on the BiggerPockets Forums!

In This Episode We Cover:

How to cash flow WITHOUT money or rentals (and whether this strategy works in 2024)

The pros and cons of Airbnb arbitrage (and costly mistakes to avoid!)

The BEST ways to leverage your home equity as a new investor

Using the BRRRR method (buy, rehab, rent, refinance, repeat) to build your portfolio

When to use a cash-out refinance versus a home equity line of credit (HELOC)

Crucial steps to take when inheriting tenants with your rental property

How to get tenants to agree to rent increases using the “binder method”

And So Much More!

Links from the Show

Ashley's BiggerPockets Profile

Tony's BiggerPokckets Profile

Join BiggerPockets for FREE

Ask Your Question on the BiggerPockets Forums

Buy the Book “Short-Term Rental, Long-Term Wealth”

Find Investor-Friendly Lenders

See Ashley and Tony at BPCON2024 in Cancun!

BiggerPockets Real Estate - Episode 520: $47K/Month in Rent, 0 Doors Owned | Rookie Takeover w/ Rafael Loza

Get FREE Landlord Forms by Becoming a BiggerPockets Pro Member

Find Landlord-Tenant Laws in Your State

(00:00) Intro

(00:57) What Is Rental Arbitrage?

(10:53) HUGE Arbitrage Mistakes to Avoid

(14:50) How to Invest Your Home Equity

(21:38) Inheriting Tenants & Raising Rents

(31:58) Send Us Your Question!

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-451

Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com.

Learn more about your ad choices. Visit megaphone.fm/adchoices

  continue reading

457 episodes

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