Airbnb Arbitrage Income Report: How I Made $208,054 in My First Year
Are you tired of trying new side hustles that never seem to work out?
That was me too. I didn’t know if I’d ever find something that would really make money—until I stumbled upon Airbnb arbitrage by accident. In my first year, I made over $200,000, but here’s the twist: I actually lost money in the beginning!
In this article, I’m going to walk you through how I turned that around, why Airbnb arbitrage is a great business model, and how you can start your own journey. Whether you’ve never run a business before or are just looking for a new income stream, this is for you.
What is Airbnb Arbitrage?
Let’s start with the basics: Airbnb arbitrage is when you rent a property from a landlord and list it on Airbnb. You don’t need to own the property, which means you can start with much less money than traditional real estate investments. The goal is to make more from your Airbnb guests than you pay in rent, utilities, and other expenses.
I had no real estate experience when I started, but I quickly learned how powerful this business model could be—even though I made a few mistakes early on.
How I Got Started
It was February 2022, and I had just moved into an apartment that, frankly, I couldn’t stand. Construction noise, unfinished amenities—nothing about the apartment lived up to its potential. I wanted out, but I was stuck with the lease.
Instead of letting it drag me down, I decided to list the apartment on Airbnb. My goal wasn’t to make a fortune—it was just to cover some of the rent. I spent about $2,000 to furnish the place with essentials: a bed, a couch, some kitchen supplies, and basic decor.
Within a week, I got my first booking for the entire month! It felt like a win—until I realized I had actually lost money. My rent was $2,100, but I only made $1,381 from that first booking. Still, the excitement of that first booking was enough to keep me going. I knew I could make this work if I just figured out how to price better.
My First Year Income Breakdown
After that first month, I quickly learned how to adjust my pricing, and by the second month, I was already seeing much better results. Here’s what my income looked like in my first year:
February: $1,381 (I lost money here!)
March: $3,645 (pricing adjusted)
April: $3,139
May: $8,058 (added a second apartment)
June: $11,300
July: $18,922 (added a third apartment)
August: $27,928
September: $32,050
October: $38,884
November: $26,406
December: $36,341
By the end of the year, I had made over $200,000, and my business was growing faster than I could have imagined. But it wasn’t all smooth sailing. I had to make some real adjustments along the way.
Being Transparent About My Spending
I believe in being 100% transparent, so let’s talk about the costs involved. It’s important to know that you’ll have some upfront expenses when starting Airbnb arbitrage. Here’s a breakdown of what I was spending each month:
Rent for 2 Apartments: $4,400 per month ($2,200 per apartment).
Security Deposits: $2,200 each for my second and third apartments ($4,400 total upfront).
Internet: $50 per month, which was strong enough to cover both apartments.
PECO (Utilities): $100 per month per apartment.
For my first apartment, I made about $1,500 in profit after rent each month once I got my pricing right. On top of that, I pocketed the $65 cleaning fee per stay because I did all the cleaning myself. This extra money really helped me increase my overall profit and gave me more flexibility to grow.
How I Grew My Airbnb Arbitrage Business
After adjusting my pricing and realizing the potential, I knew I wanted to scale. By May, I took on a second apartment, and in July, I added a third. This allowed me to diversify my income and maximize my profits.
One of the key strategies I used was dynamic pricing. I researched market rates, adjusted prices based on demand, and used tools like AirDNA to understand how much I could charge. This made a huge difference, especially in peak seasons, where I could charge significantly more.
How to Start an Airbnb Arbitrage Business
Want to know how to get started? Here’s a simple guide that outlines the steps I took:
Find the Right Property: You don’t need to buy a property; just find one in a high-demand area and negotiate a lease with the landlord.
Negotiate the Lease: Be upfront about your intentions to list the property on Airbnb. Some landlords are open to it, especially if you can convince them you’ll take good care of the place and pay rent on time.
Furnish the Apartment: You don’t need to overspend here. I spent around $2,000 to get the basics: a bed, couch, kitchen supplies, and bathroom essentials. You can download my Airbnb Furnishing Checklist for free to help you get started. Sign up here.
List on Airbnb: Create a listing that stands out with great photos and descriptions. Highlight what makes your property unique—whether it’s the location, amenities, or decor.
Optimize Your Pricing: Use tools like AirDNA or Airbnb’s Smart Pricing to help you set competitive rates. Pricing can make or break your profits, so stay flexible and adjust based on demand.
Scale: Once you feel confident with one property, start looking for your second. This is how I grew my business quickly and significantly increased my monthly income.
The Biggest Lessons I Learned
If I could go back and do it all again, there are a few things I’d keep in mind:
Start Small: I started with one apartment, and even though I lost money initially, it gave me the foundation I needed to grow.
Don’t Be Afraid to Adjust: Pricing is key in Airbnb arbitrage. That first month, I lost money, but once I fixed my pricing, things took off.
Focus on the Guest Experience: Happy guests lead to great reviews, which help you get more bookings and eventually allow you to charge higher rates.
Ready to Start Your Own Airbnb Arbitrage Journey?
Airbnb arbitrage is an incredible business model that allows you to earn passive income without owning property. If you’re ready to get started, I have a free gift for you—my Airbnb Furnishing Checklist! It will help you set up your first property with everything you need, without overspending. Sign up here to download it.
If you’re serious about scaling an Airbnb business, my No Gamble Hosting Blueprint covers everything from negotiating leases to optimizing pricing and handling guest issues. You can learn how to build a 6-figure business just like I did. Enroll here to get started today!
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I turned a challenging situation into a thriving million dollar short-term rental business. My mission is to prove that anyone can replicate my success with effort and dedication. I am committed to teaching and guiding others to achieve their financial goals.
