The Airbnb Arbitrage Roadmap, created by Preston Seo of the Legacy Investing Show, is a video course about building a 6-figure Airbnb business through rental arbitrage. While it’s focused on Airbnb, the course also teaches managing short term rentals on other platforms, like Vrbo, Homestay, and Booking.
The allure of Airbnb arbitrage lies in the potential to earn substantial profits over a relatively short period. According to the Airbnb Arbitrage Roadmap, you can start a $2500 per month income stream per Airbnb property in just 12 weeks. That means if you build a portfolio of 40 short term rentals, you’ll be earning $100,000 per month. The short term rental market has experienced significant growth over the past few years (valued at $99.38 billion in 2021), with steady annual increases in global revenue (11.1% compound annual growth rate from 2022 to 2030). This growth is attributed to increased traveler interest in budget-friendly accommodations and the convenience of short term rentals over hotels.
However, competition in the space continues to increase and there are regulatory challenges in many cities. As more people jump on the short term rental bandwagon, some cities have started implementing stricter regulations to address issues like housing shortages and community disturbances caused by excessive short term rentals. Plus, managing a portfolio of Airbnbs can be time-consuming and demanding, especially for those new to the hospitality industry.
Preston Seo’s Airbnb Arbitrage Roadmap Review: Pros and Cons
Pros
Numerous Bonus Content: The Airbnb Arbitrage Roadmap offers bonus resources, such as furniture lists and market research templates.
Individual Property Feedback: You receive personalized feedback from Preston Seo himself, who helps you identify areas for improvement and optimize your rental properties.
Direct Access: You can message Preston directly if you’re facing a problem.
Private Community: Connect with other Airbnb business owners and get access to exclusive community content, such as bi-monthly Zoom calls and workshops with special guests.
Cons
No Money-Back Guarantee: According to Preston, he won’t be giving refunds because he’ll be giving all the processes, templates, systems, and scripts that he uses for his own business. He even goes on to say that you’re not the type of person they want to work with if you need a money-back guarantee.
No Equity Being Built: As rental arbitrage involves leasing properties rather than owning them, you’ll miss out on the opportunity to build equity through property ownership.
It’s Temporary: Since you’re relying on lease agreements, the continuity of your Airbnb listing is subject to the landlord's decisions. They may choose to not renew your lease, so you may lose successful rental properties.
No Tax Benefits: Compared to property ownership, rental arbitrage doesn’t offer tax benefits like depreciation and cost segregation studies.
Local Regulations: With Airbnb arbitrage, you’re subject to local laws and regulations that govern short term rentals. Failure to adhere to them can lead to fines, legal issues, or even the suspension of your rental operations.
Price
$2500
Refund Policy
None
Origin
2022
Reputation
The Legacy Investing Show, Preston Seo’s main Airbnb arbitrage education platform, has a significant following on social media. Over 2.4 million followers on TikTok, 1.6 million on Facebook, and 656 thousand on Instagram. However, the course itself doesn’t have a lot of social proof outside the official landing pages.
Overall Airbnb Arbitrage Roadmap Review: Can You Make $2500 Per Month From 1 Airbnb in Just 12 Weeks?
Yes, you can make $2,500 in just 12 weeks with Airbnb arbitrage, but this requires significant upfront capital and effort. Most courses sell a picture-perfect scenario of securing a property, preparing it, getting it booked, and then making profits almost immediately after starting Airbnb arbitrage. But the reality isn’t as easy, especially if you’re a beginner. There’s a learning curve to negotiating with landlords, finding the right property, and marketing your listing.
On the Airbnb Arbitrage Roadmap landing page, Preston mentions that you’ll only need an hour per day to dedicate to this business. But considering his promise of making a profit in just 12 weeks, an hour a day just isn’t enough. Students who’ve taken the course feel the same way, as shown in this Reddit thread:
Even based on what Preston teaches in his social media posts, it takes around 45 days to get your first property, turn it into an Airbnb, and start generating rental income from it. Here’s a step-by-step breakdown of those 45 days from a TikTok video he posted:
So, it takes about 14 days just to close one deal and 1 month to set everything up before you even upload a listing to a vacation rental platform. And there’s no guarantee that people will book your rental property after launching them on Airbnb. It may take more time to establish a consistent stream of bookings, especially considering the competitive nature of this market.
What Do You Get in Airbnb Arbitrage Roadmap?
The Airbnb Arbitrage Roadmap has over 60 videos that guide you step-by-step through the process of building an Airbnb business, from setting up your LLC to furnishing your properties and optimizing your listings. The program also includes weekly Zoom calls to provide ongoing support and interaction with fellow learners.
Preston Seo and his team will give you individualized feedback on your properties, running the numbers, and commenting on the amenities, occupancy rates, average daily rate (ADR), and competitors.
Preston Seo hosts bi-monthly Zoom calls with his private community, covering topics such as AirDNA demos, tax strategies, roleplay calls, and auditing.
The annual subscription costs $3,588 per year, but enrolling in the program will give you a discount, and you can access the package for only $1,548, which is $2,040 off the original price.
Preston Seo’s Airbnb arbitrage calculator will assess the financial viability of potential properties to help you make well-informed investment decisions.
The framework helps you analyze if a property is profitable, so you don’t waste acquiring properties with low-profit potential.
You’ll get access to Preston’s 3 top-performing furniture lists and a furniture budget & tracking template designed by Preston’s interior design team. This will help you furnish your properties for maximum guest appeal while keeping costs under control.
This automated lead generation system simplifies the process of connecting with property owners, streamlining your acquisition efforts.
By leveraging automation, you can reduce manual tasks and focus on strategic aspects of your business, ultimately working less while maintaining operational excellence.
This Airbnb co-hosting masterclass is for people who don’t have enough funds for Airbnb arbitrage.
You’ll get additional resources, such as a market research template, an STR (short term rental) purchase calculator, CRMs (customer relationship management tools), and client email templates.
How Much Does Airbnb Arbitrage Roadmap Cost?
The Airbnb Arbitrage Roadmap costs $2,500. While the upfront investment appears substantial, you do get a personalized touch through individual property feedback and direct access to Preston Seo and his team. There’s also the private community where you can collaborate with like-minded entrepreneurs. So, this supportive and hands-on approach may be worth the price, considering other programs charge more for mentorship.
How Much Money Can You Make with Airbnb Arbitrage Roadmap?
You can make $2,500 per month per property with Airbnb Arbitrage Roadmap. They claim you can do this in 12 weeks, but that’s highly unlikely. The amount of time to achieve this income will depend on your location, property selection, market demand, and experience in Airbnb hosting and arbitrage. You may also make less or more than $2,500 per property. Factors like seasonality, marketing performance, and your listing’s popularity can affect your earnings.
Is Airbnb Arbitrage Roadmap Beginner-Friendly?
Yes, Airbnb Arbitrage Roadmap is beginner friendly, according to their website.
The course does provide valuable guidance and resources, but the reality of starting an Airbnb business through rental arbitrage is more challenging than portrayed. If you’re new to the real estate and hospitality industries, you may encounter steep learning curves in negotiating with landlords, managing properties, and marketing your listings. Plus, the promise of acquiring your first rental property and earning $2,500 per month within just 12 weeks may not be achievable for everyone.
Is Airbnb Arbitrage Roadmap Up to Date?
Yes, the Airbnb Arbitrage Roadmap is up to date. The course was launched only recently in 2022. Preston Seo also occasionally hosts a live class about Airbnb arbitrage as his lead magnet for selling the course.
Airbnb Arbitrage Roadmap Reviews: What Are Airbnb Arbitrage Roadmap Students Saying Online?
Almost all students have positive reviews for Airbnb Arbitrage Roadmap. Granted, most of these reviews are posted on the course’s website or the Legacy Investing Show YouTube channel. In these testimonials, students share their wins in acquiring properties and making income from Airbnb listings. Beyond their website, there are few reviews available. But overall, Airbnb Arbitrage Roadmap has a good track record based on its website.
Have Students Made Money After Joining Airbnb Arbitrage Roadmap?
Yes, students have made $1,800 to $12,000, with around $3000 as the average, in monthly profits after joining Airbnb Arbitrage Roadmap. However, these reports all come from featured reviews on the course’s landing page. Also, some of the students’ testimonials talk about projections or gross revenue, not net profit.
Airbnb Arbitrage Roadmap Alternatives
You can find more options in this article ranking the best Airbnb arbitrage courses.
Who Is the Creator of Airbnb Arbitrage Roadmap?
Preston Seo is the creator of Airbnb Arbitrage Roadmap. At the age of 31, he’s a real estate investor, business owner, and entrepreneur based in Salt Lake City, Utah. He also teaches financial freedom through the Legacy Investing Show, which has almost 5 million followers across social media platforms. He gained the most recognition through his TikTok account where he amassed 2.4 million followers and was considered by Fintech as one of the top 10 TikTok “finfluencers” (financial influencers) in 2022.
Before he grew his Airbnb business, Preston used to have a corporate sales job. He quit in 2021 to pursue real estate investing full-time and help other people set up profitable Airbnbs. Presently, Preston is the proprietor and manager of more than 40 rental properties worth $9 million in total value.
Is Preston Seo Legit or a Scam?
Preston Seo is legit and not a scam. He has a huge following online through his Legacy Investing Show. He was also featured in Yahoo Finance and Business Insider. But he has not been in a lot of interviews and the Airbnb Arbitrage Roadmap doesn’t have a lot of reviews outside their website.
The Legacy Investing Show does have 2 reviews on Trust Pilot. One warns of a crypto scam that Preston is running, but the other defends him from it. The comment may just be spam. However, there’s some evidence that The Legacy Investing Show is involved in the crypto space, though it’s unclear whether or not this is owned by them or someone using their name.
How Active Is Preston Seo in Airbnb Arbitrage Roadmap?
Preston Seo is active in the Airbnb Arbitrage Roadmap. He responds to his students' messages and comments on community posts. He also assists members in making informed decisions for their rental arbitrage ventures. Additionally, he hosts bi-monthly Zoom calls with his private community to talk about topics related to Airbnb Arbitrage.
What is Airbnb Arbitrage?
Airbnb arbitrage is a business model where you lease long-term properties from landlords and sublet them as short term rentals (STRs) on Airbnb. This approach allows you to generate income through real estate without the need for property ownership. You gain profit by setting higher nightly rates for the short term rentals compared to the long-term lease payments, thereby capitalizing on the price difference.
Is Airbnb Arbitrage Legal?
Airbnb arbitrage is legal but be aware of local laws in different locations. In most cities, the primary requirement is to obtain the landlord's approval with a contract allowing subleasing. But certain areas, like New York, San Francisco, and Barcelona, have banned this practice to improve housing availability and lessen neighborhood disturbances. So, conduct thorough research on the local regulations governing short term rentals before doing Airbnb arbitrage.
Do You Need Special Insurance When Running an Airbnb Arbitrage Business?
Yes, getting insurance when running an Airbnb business helps protect your financial interests. Obtaining homeowner insurance is often not possible since you don’t own the property, so the most important insurance you can get is liability insurance, which protects you from potential lawsuits if an Airbnb guest is injured while staying in your leased property. You can also get loss of business income insurance, which provides financial protection in case of property damage due to fire, theft, etc.
Why Is Liability Insurance So Important for Rental Arbitrage?
Is Airbnb Arbitrage Still Profitable in 2024?
Yes, Airbnb arbitrage is still profitable in 2024. As of July this year, Airbnb has a net worth of $93 billion. And according to Search Logistics, the platform has over 150 million global users, with an average of 6 guests checking in per second. However, bookings are slower than they used to be, particularly in markets that allow short term rental permits. This is because Airbnb has been flooded with supply in these areas, with listings increasing by 24.6% every year, according to AirDNA. So, to remain profitable in this environment, you should adopt a strategic approach, focusing on niche properties, marketing effectively to attract guests, and consistently providing exceptional experiences to drive positive reviews and repeat bookings.
What Airbnb Occupancy Rate Can You Expect in the US Market in 2024?
The Airbnb occupancy rate is 48% to 50% for the US market in 2024. Although it’s slightly lower compared to the rates in 2022 (58%) and 2021 (60%), it still shows an improvement from the rates observed in 2019 (53.3%) and 2020 (52.9%).
How Hard Is Airbnb Arbitrage?
Airbnb arbitrage is easier and cheaper than buying a rental property. The most challenging aspect is finding the right property and landlords willing to collaborate. Securing capital of $10,000 to $20,000 is recommended, but you don’t need a real estate license, making it one of the simplest ways to enter the real estate business. While it’s advantageous to have industry connections, excellent credit, and experience in sales negotiations, they’re not mandatory prerequisites for getting started.
What Is the Success Rate of Airbnb Arbitrage?
There’s no known success rate in Airbnb arbitrage, but you’ll need a 70-90% occupancy rate to be successful. Success in Airbnb arbitrage varies from host to host based on their individual efforts, property portfolio, and the market conditions they operate in.
What Are the Best Cities for Airbnb Rental Arbitrage?
Find more locations in this list of the best cities for Airbnb arbitrage.
What Are the Potential Risks and Downsides to Airbnb Rental Arbitrage?
How to Start Airbnb Arbitrage Without Enrolling in Airbnb Arbitrage Roadmap: 7 Steps to a Successful Airbnb Rental Arbitrage Business
What Is Your Top Recommendation for Making Money Online in 2024?
Local Lead Generation is my top recommendation for making money online in 2024. While you rent physical properties in Airbnb arbitrage, local lead generation involves renting out digital real estate to local businesses. This business model allows you to generate passive income without the hassles of dealing with landlords, property maintenance, lease negotiations, and local short term rental regulations. The absence of these complexities significantly reduces the chances of costly mistakes, making local lead generation a more accessible business model for aspiring entrepreneurs. Check out this local lead generation course to unlock passive income opportunities without the challenges of rental arbitrage.
