D
erek Cheung, a college dropout, has built a lucrative rental arbitrage business that generates over $2 million in annual revenue. Inspired by Robert Kiyosaki's "Rich Dad Poor Dad," Cheung started his venture in 2019 by consuming information on the strategy of making a profit from the difference between long-term and short-term rental rates.

    Cheung began searching for available properties on websites like Zillow Group, then contacted landlords to explore potential partnerships. He signed two one-year leases in early 2019, furnishing the units and listing them on Airbnb. The response was immediate, with Cheung generating around $4,000 per month in profit from the initial two units.

    As his operation grew, Cheung targeted construction crews looking for short-term housing opportunities. He landed three-bedroom houses and a duplex, setting up one-year leases and furnishing the properties before the crew's arrival. Despite initial concerns about liability, Cheung soon netted around $4,000 per month in profit from each property.

    As his business scaled, Cheung hired a cleaning crew to handle maintenance between listings. However, the pandemic hit in 2020, causing travel industry disruptions and forcing Cheung to adapt by renting out properties for longer periods. By early 2021, he entered a buyer's market, securing leases with free rent incentives.

    By the end of 2021, Cheung had secured leases on over 50 properties, with occupancy rebounding as the pandemic subsided. His business generated gross profits of around $2 million in 2021, with expenses totaling approximately $1.25 million and net profit reaching about $750,000.