$1.9 million. That’s what I pulled in last year from Airbnb properties. And here’s what makes that number kind of ridiculous – I don’t own any of them. Don’t rent them either. Not a single one.
My name’s Shaun Ghavami and I run 24 Airbnb listings through a model most people have never even heard of. But before we get into all that, let me take you back to where this actually started because it’s pretty far from where you’d expect.
I was making $200,000 a year as a Director at BMO – one of Canada’s biggest banks. Corner office. Benefits package. The whole thing. And I gave it all up at 33.
Why?
Because I’d figured out something that changed how I think about money entirely. Something that started with a spare bedroom and a $65 per night Airbnb listing.
This page is the complete guide to rental arbitrage – what it actually is, what it costs to start, how to find properties, how to pitch landlords, and the exact model I built inside 10XBNB that’s now been used by over 1,600 students. Some of them had zero experience and zero dollars when they started. A few had never even opened the Airbnb app before.
I’m going to be straight with you about all of it – the real numbers, the risks, the parts that suck, and the parts that actually work. No fluff.
What Is Rental Arbitrage – And What Do Most People Get Wrong About It
Rental arbitrage is when you lease a property long-term and then list it on Airbnb or another short-term rental platform. You pay the landlord monthly rent – let’s say $2,000 – and you charge guests $150 to $250 a night. The difference between what you collect from guests and what you pay in rent plus expenses – that’s your profit.
Pretty simple on paper.
But here’s the thing most guides won’t tell you – you’re signing a lease. That means you’re on the hook for that rent whether the property books or not. And that’s where a lot of people get burned because they pick the wrong market or the wrong property and suddenly they’re bleeding $2,000 a month with no guests to cover it.
So yeah, it works. It can work really well actually. But it’s not the zero-risk passive income machine that some people on TikTok want you to believe it is. You’re running a real business with real expenses and real obligations.
That said – when you do it right, the economics are kind of insane.
A property that rents for $2,000 a month as a long-term rental can pretty easily generate $4,000 to $6,000 a month on Airbnb in the right market. After you subtract your rent, cleaning fees, supplies, and software costs, you’re looking at $1,500 to $3,000 in monthly profit from a single unit. Multiply that by 5 or 10 units and you’ve got a business that’s pulling in more than most people’s salaries.
Now I know what you’re thinking – that sounds too good to be true.
And honestly? For some people it is. Because the ones who fail almost always make the same mistakes: picking a bad market, underestimating costs, or not having enough cash reserves to weather a slow month. I’ll get into all of those later.
How I Went From a $65 Spare Bedroom to $175,000 a Month
I didn’t start with some grand plan to build an Airbnb empire. That’s not how it happened at all.
What actually happened was a friend mentioned Airbnb to me and I figured – why not try it. I was living in a 3-bedroom townhouse with my girlfriend at the time and I listed the two extra bedrooms for $65 a night. I slept in the smallest room. Shared the bathroom with strangers. It was awkward and kind of uncomfortable and I had to start somewhere.
Both rooms booked almost immediately.
And when I woke up the next morning and saw that money had hit my account while I was sleeping – something clicked. Like actually clicked. I remember thinking: who would’ve thought I could make money in my sleep?
Now at this point I was still working at the bank. Making good money too. But I started running the numbers on what would happen if I scaled this thing up and the math didn’t lie. A $65 per night spare bedroom was nice but what if I had 5 properties? 10? What if I could systematize the whole operation so it basically ran itself?
That’s exactly what I did over the next 5 years. And I did it without quitting my banking job until the Airbnb income was so far ahead of my salary that staying at the bank actually felt like the risky move.
Here’s how the timeline broke down:
Year 1: Listed the spare bedrooms. Learned the Airbnb platform inside and out. Made every mistake in the book – bad photos, wrong pricing, terrible guest communication. But I was learning and the bookings kept coming.
Year 2: Automated everything I could. Messaging templates, automated pricing tools, a cleaning team on call. Got my weekly time commitment down to about 2 hours across all my properties.
Year 3: Hit $100,000 a year in Airbnb income. Still working at BMO full-time. This was the moment where I realized – okay, this is actually real. This isn’t a side hustle anymore.
Year 4: Scaled from 1 property to 12. Revenue hit $120,000 a month. I was managing everything remotely from my couch. The bank job started feeling like the side gig.
Year 5: $175,000 a month. I walked into my boss’s office and quit. Bought my parents a house with the Airbnb money. That one still gets me because growing up we were on welfare – government housing, food stamps, the whole thing. My family came to Canada as refugees from Iran when I was 5 years old. So buying my parents a home with money I made from managing other people’s properties on Airbnb? Yeah. That meant everything.
The Real Numbers – What Rental Arbitrage Costs and What It Pays
Let’s get into the actual money because this is where most guides either lie to you or leave out the uncomfortable parts.
Starting a rental arbitrage unit typically costs between $3,000 and $10,000. Here’s where that money goes:
| Expense | Typical Range | Notes |
|---|---|---|
| First month’s rent | $1,500 – $3,000 | Depends on market |
| Security deposit | $1,500 – $3,000 | Usually equal to one month’s rent |
| Furniture and setup | $1,500 – $5,000 | Can bootstrap for under $2,000 if you’re scrappy |
| Photography | $150 – $400 | Don’t skip this – bad photos kill listings |
| Supplies and amenities | $200 – $500 | Linens, towels, kitchen basics, toiletries |
| Software and tools | $50 – $150/month | Pricing tool, channel manager, smart locks |
So call it $5,000 to $8,000 all-in for your first unit if you’re being smart about it. You can go cheaper – I’ve seen students launch for under $3,000 by hitting up Facebook Marketplace and thrift stores for furniture. You can also spend a lot more if you’re trying to create some luxury experience from day one which I actually don’t recommend because you want to prove the numbers work before you start throwing money at fancy bedsheets.
On the revenue side – here’s a real example.
Let’s say you find a 3-bedroom apartment in Nashville that rents for $2,200 a month long-term. Based on AirDNA data for that market, a well-optimized 3-bedroom Airbnb in a decent Nashville neighborhood can pull $5,500 to $7,000 a month in gross bookings at around 65% occupancy.
Your monthly costs look something like this:
| Monthly Expense | Amount |
|---|---|
| Rent to landlord | $2,200 |
| Cleaning (8 turnovers at $120) | $960 |
| Utilities | $250 |
| Software and subscriptions | $100 |
| Supplies restocking | $75 |
| Insurance | $100 |
| Total monthly costs | $3,685 |
If you’re grossing $6,000 a month on that property, you’re netting about $2,315 in profit. That’s one unit. Get 5 of those running and you’re looking at $11,575 a month – which is more than a lot of people make at their day jobs.
Am I right?
But – and this is a big but – those numbers assume you’re actually good at this. They assume you picked the right market, you priced correctly, your listing converts, and your reviews stay above 4.7 stars. Screw up any one of those things and your profit evaporates pretty quick.
Step by Step – How to Find and Land Your First Property
Okay so here’s the actual process. This is what I teach inside 10XBNB and it’s the same approach that’s worked for over 1,600 students at this point.
Step 1: Pick your market.
You want a city or area where short-term rental demand is strong, regulations are landlord-friendly, and the gap between long-term rent and Airbnb nightly rates is wide enough to actually make money. Not every market works for arbitrage. Some cities have banned short-term rentals entirely. Others have permit requirements that add $500 to $2,000 in annual costs. You need to know this stuff before you sign a lease.
I tell my students to check three things first – local STR regulations on the city’s official website, average nightly rates on AirDNA or the Airbnb search page for your target area, and average long-term rental rates on Zillow or Craigslist. If the Airbnb rate is at least 2x the monthly rent, you’ve probably got a viable market.
Step 2: Find properties that have been sitting empty.
This is the secret. Go to Craigslist and sort rental listings by oldest first. Any property that’s been listed for 20 days or longer is a landlord who’s losing money right now. Every day that property sits empty is money they’re not making. And that’s your leverage.
You’re not begging landlords for permission. You’re solving a pain point. There’s a massive difference.
Step 3: Run the numbers before you reach out.
Use the Airbnb arbitrage calculator or a tool like AirDNA to estimate what that property could generate as a short-term rental. You want to know the projected monthly revenue, the average nightly rate, and the expected occupancy for that specific area before you ever pick up the phone.
Step 4: Make the pitch.
This is where most people freeze up. They don’t know what to say or they overthink it. My approach has always been pretty direct and it works because it leads with the landlord’s problem – not your opportunity.
The Landlord Pitch That Actually Works
Here’s pretty much what I say – adjusted obviously for whatever the specific property and market looks like:
“Hey – I noticed your property has been listed for about 28 days now. I specialize in short-term rental management and based on the data I’ve pulled for this area, this unit could generate roughly $5,500 a month on Airbnb compared to the $2,200 you’re asking for long-term. I handle everything – listing creation, guest communication, cleaning, maintenance. You get a guaranteed monthly payment that’s higher than your asking rent and you don’t have to deal with any of it. Want me to walk you through the numbers?”
That’s it. No fancy pitch deck. No 30-page proposal. Just here’s your problem – here’s how I solve it – here’s what you make.
Now some landlords will say no. A lot of them actually. Maybe 7 or 8 out of 10 will turn you down or not respond. That’s normal and you shouldn’t take it personally because it really is a numbers game. But the ones who say yes – those are your properties. And you only need a few to build a very real income stream.
One thing I always recommend – bring receipts. Literally. I used to pull up my own Airbnb dashboard on my phone and show landlords the actual booking revenue from properties I was already managing. Nothing closes a skeptical landlord faster than real numbers on a real screen.
Co-Listing – The Zero Risk Path Most People Don’t Know About
Okay now here’s where I’m going to tell you something that might change how you think about this whole thing.
Rental arbitrage works. I just showed you the numbers. But it does require capital – $3,000 to $10,000 for your first unit – and it does carry risk because you’re signing a lease.
What if you could skip all of that?
That’s exactly what co-listing is. And honestly it’s the model I wish someone had shown me when I first started because it would’ve saved me years of grinding.
With co-listing you don’t rent the property. You don’t own it. You don’t sign any lease. Instead you partner with property owners who already have furnished units sitting empty and you manage their Airbnb listings for a 20 to 25% cut of every booking. Zero capital required. Zero financial risk. You’re basically a property manager who specializes in short-term rentals.
That’s how I manage $100 million worth of real estate without owning a penny of it. And that’s how I made $1.9 million in 2022 from properties that aren’t mine.
The craziest part? Co-listing is actually the fastest path TO rental arbitrage. You build up cash flow from co-listing, learn the business with zero risk, and then use that money to fund your first arbitrage unit when you’re ready. It’s the progression I teach inside the 10XBNB co-listing training and it’s the path that’s worked for the majority of our successful students.
Here’s how the three main Airbnb business models compare:
| Model | Upfront Cost | Monthly Risk | Your Cut | Control Level |
|---|---|---|---|---|
| Property Ownership | $50,000 – $500,000+ | High – mortgage and vacancy | 100% after expenses | Full |
| Rental Arbitrage | $3,000 – $10,000 | Medium – lease obligation | Revenue minus rent and costs | Full |
| Co-Listing (10XBNB Model) | $0 | Low – no lease | 20 – 25% of bookings | Full |
See the difference? And no – co-listing isn’t just being someone’s assistant. When I co-list a property I create the listing from scratch. I take the photos. Write the description. Set the pricing strategy. Manage every guest from booking to checkout. The owner sits back and collects their 75 to 80%. I keep 20 to 25% for doing all the actual work.
If you want to understand the difference in more detail – I wrote a full breakdown on co-listing vs rental arbitrage and which one you should start with.
Real Results From Real People
I could talk about my own numbers all day but honestly the student results are what matter more because they prove this works for normal people – not just someone who spent 12 years in banking and got lucky on timing.
Javon in Arizona started with zero experience. No properties, no Airbnb account, nothing. Within his first 60 days in the program he landed his first co-listing client and within 6 months he had multiple properties generating consistent monthly income. He posted his revenue screenshots in our private Facebook group and other students were shocked because his market isn’t even a major tourist destination.
John in Vancouver got 4 co-listing properties and generated $50,000 in bookings in just 3 months. One of those properties was a chalet on an acre of land in Ladysmith – not exactly downtown Vancouver – and it still performed because the listing was optimized correctly and the pricing strategy was dialed in.
Gian Marco in Florida, Cindy in Seattle, Robert in California – all started from scratch and built real income streams using the same system. And the thing these students all have in common isn’t that they were natural entrepreneurs or had some special background. It’s that they followed the process and actually did the work. Because this isn’t magic – it’s execution.
I’m not saying everyone who joins 10XBNB makes $50,000 in 3 months. Some students take longer. Some struggle to land their first property. And yeah – some don’t follow through at all. That’s the honest truth and I’m not going to pretend otherwise because I’d rather set real expectations than sell you a fantasy.
Best Markets for Rental Arbitrage Right Now
Not every city works for this. Some markets are oversaturated. Some have regulations that make arbitrage practically impossible. And some are absolute goldmines that most people don’t even think about.
The markets that work best for rental arbitrage tend to share a few things in common – the gap between long-term rent and short-term nightly rates is wide, STR regulations are either permissive or well-defined, there’s consistent demand from tourists or business travelers, and the cost of entry (rent and furnishing) is manageable.
Based on what I’m seeing in 2026 and what our students are reporting – cities like Nashville, Tampa, Scottsdale, San Antonio, Columbus Ohio, and parts of Florida outside of Miami are performing really well. Secondary markets are honestly where a lot of the opportunity is right now because the big cities like LA and New York have gotten super competitive and heavily regulated.
I put together a full breakdown of the most profitable Airbnb cities that gets updated regularly with fresh data if you want to drill into specific markets.
The Legal Stuff You Need to Know
This isn’t the exciting part but it’s the part that’ll save your business if you get it right and destroy it if you don’t.
LLC: Yes you should form one. An LLC separates your personal assets from your business liabilities which means if something goes wrong with a guest or a property, your personal savings and your house aren’t on the line. Filing an LLC costs between $50 and $500 depending on your state. Do it before you sign your first lease.
Insurance: Airbnb’s AirCover program provides up to $3 million in damage protection but it doesn’t cover everything and you absolutely should not rely on it as your only protection. Get a short-term rental insurance policy from a company like Proper or CBIZ. It’ll run you about $80 to $150 a month per property and it’s worth every penny.
Subletting permission: This is non-negotiable. Your lease must explicitly allow short-term subletting. If it doesn’t and you list on Airbnb anyway, you’re risking eviction and potentially a lawsuit. Get it in writing. Every single time. I go deeper into the contract side in the agreement template guide.
Local regulations: Every city handles short-term rentals differently. Some require permits. Some limit the number of days you can rent. Some ban it entirely in certain zones. Check your city’s municipal code and STR ordinance page before committing to any market. This takes 30 minutes and could save you thousands.
Scaling From 1 Property to 10 and Beyond
Getting your first property is the hardest part. Scaling after that is mostly about systems and cash flow management.
Here’s what the timeline actually looks like for most people who do this right:
Months 1 to 3: You’re learning everything. Setting up your first property, figuring out pricing, getting your first reviews, dealing with your first difficult guest. This phase is messy and that’s okay. Momentum beats perfection – just get the first one running and learn as you go.
Months 3 to 6: Your first property is profitable and you’ve built systems – automated messaging, a reliable cleaning crew, dynamic pricing software running in the background. Now you start looking for property number 2 and 3. The landlord pitch gets easier every time because you have real data to show.
Months 6 to 12: This is where it compounds. You’ve got 3 to 5 properties running, your monthly income is replacing or exceeding your day job salary, and you’re spending maybe 5 to 8 hours a week managing everything. Some students at this point start hiring a virtual assistant at $5 to $8 an hour to handle guest communication which frees up even more time.
My personal approach – which I teach in the 10XBNB mentorship program – is to start with co-listing to build cash flow and learn the business with zero risk. Then once you’ve got consistent income from co-listing, use that money to fund your first rental arbitrage unit. Then rinse and repeat. Co-listing income funds arbitrage units, arbitrage units generate bigger profits, bigger profits fund property acquisitions down the line.
That’s the full progression. Co-listing to arbitrage to ownership. And you can start the whole thing tonight for $0 if you follow the getting started guide.
Common Mistakes That Will Cost You Money
I’ve watched over 1,600 students go through 10XBNB at this point and the ones who struggle almost always hit the same walls. So let me save you the pain.
Picking a market based on vibes instead of data. You think a city “feels” like a good Airbnb market because you visited there once and it was touristy. That’s not analysis. Pull the actual numbers – average daily rate, occupancy rate, revenue per available night – and compare them to the long-term rent in that area. If the math doesn’t work on a spreadsheet it’s not going to work in real life.
Underestimating expenses. Cleaning costs, utilities, restocking supplies, occasional maintenance, software subscriptions, insurance – it all adds up fast. I’ve seen people project $3,000 a month in profit and end up making $800 because they forgot to account for half their costs. Be conservative with your projections. Always.
Not having cash reserves. You need at least 2 to 3 months of rent saved up as a safety net before you start. Slow months happen. Cancellations happen. A pipe could burst. If you’re one bad month away from not being able to pay rent, you’re not ready.
Terrible photos. This one kills me because it’s so easy to fix. Bad photos on your listing are the number one reason properties underperform. Hire a photographer for $150 to $300. It’ll pay for itself within the first week of bookings.
Is Rental Arbitrage Still Worth It in 2026
Short answer – yes. But it’s not as easy as it was in 2019 or 2020.
The market has matured. There are more hosts, more competition, and tighter regulations in a lot of cities. But there’s also more demand than ever – Airbnb reported record bookings and the short-term rental market overall keeps growing because travelers increasingly prefer unique, home-like stays over hotels.
What’s changed is that you can’t just throw a listing up and expect it to print money anymore. You need to actually be good at this – good at pricing, good at guest experience, good at choosing markets. The operators who treat this like a real business are making more money than ever. The ones who treat it like a get-rich-quick scheme are getting filtered out.
And that’s actually a good thing if you’re willing to learn and put in the work. Because less competition from lazy operators means more bookings for you.
If you want to compare different training programs that teach this stuff, I wrote an honest comparison of the best Airbnb courses in 2026 – including our competitors. Because I’d rather you pick the right program for you even if it’s not 10XBNB than sign up for something that wastes your time and money.
Frequently Asked Questions
How much money do I need to start rental arbitrage?
Most operators spend between $3,000 and $10,000 on their first unit. That covers first month’s rent, security deposit, basic furniture, supplies, and photography. If you want to start with literally $0, co-listing lets you build income and experience before committing any capital.
Is rental arbitrage legal?
It’s legal in most places as long as you have written permission from your landlord to sublet and you comply with your city’s short-term rental regulations. Some cities require permits or limit the number of rental days. Always check local ordinances before signing a lease.
How much can you realistically make?
It depends heavily on your market and how many properties you manage. A single well-performing unit typically nets $1,500 to $3,000 per month after all expenses. Operators with 5 to 10 units commonly generate $10,000 to $30,000 monthly.
What’s the difference between rental arbitrage and co-listing?
With arbitrage you sign a lease, pay rent, furnish the property, and keep all the profit after expenses. With co-listing you don’t sign any lease or pay any rent – you manage someone else’s property for a 20 to 25% commission. Co-listing has zero financial risk but lower per-property income. Check the full comparison here.
Do I need to quit my job to do this?
No and I actually recommend you don’t – at least not at first. I ran my Airbnb business for 5 years alongside my banking career before quitting. The beauty of this model is that once you automate the operations – messaging, pricing, cleaning coordination – it takes maybe 2 to 3 hours per week per property. Start it as a side hustle and scale from there.
What tools do I need?
At minimum you need a dynamic pricing tool like PriceLabs or Wheelhouse, a smart lock for keyless check-in, and a reliable cleaning team. As you scale you’ll want a channel manager if you list on multiple platforms and potentially a property management system. I break down the full tech stack inside the rental arbitrage course comparison.
What happens during slow months?
Every market has seasonal dips. This is why cash reserves matter – you need 2 to 3 months of rent saved per property as a buffer. Smart operators also adjust their strategy during slow periods by offering longer-stay discounts, listing on mid-term rental platforms, or dropping into corporate housing which tends to be countercyclical to tourism.
Can I do rental arbitrage in any city?
No. Some cities have effectively banned short-term rentals or made the regulations so restrictive that arbitrage doesn’t pencil out. Markets like New York City, San Francisco, and parts of LA are extremely difficult. Always research regulations first. The best Airbnb cities guide covers which markets are performing well right now.
How is 10XBNB different from other programs?
Most Airbnb courses teach rental arbitrage only – which requires capital and carries lease risk. 10XBNB is the only program that teaches co-listing as the zero-capital entry point and then progresses you through arbitrage and eventually property ownership. We also provide live weekly coaching with me and Ari, a private student community, and done-for-you listing services for qualified students. Over 1,600 students have gone through the program.
source https://learn.10xbnb.com/rental-arbitrage/
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