About

I’m Timo Ketola, the founder of Airbnb Rental Empire.

After graduating from USC’s Marshall School of Business in 2003 in RE Finance, I immediately entered the real estate industry and hit the ground running.

I have been in real estate since that time running a successful brokerage, ground up developments, commercial real estate, and various other investments.

In 2012 I first discovered Airbnb (shortly after it started), and began renting out my home profitably while I traveled. I was hooked!

Immediately I thought “Why not more?”

 Buying multiple properties wasn’t an option for me, as it was very capital intensive, but renting I thought was possible- and the light bulb went off.

 

Shortly thereafter, I started renting out other houses and newly built apartments all over Southern California that would be appealing to travelers. While renting to them and making VERY good money, I mostly traveled the world and was only home about 5 months of the year and operated it all remotely.

Here we are about 10 years later, and I am operating anywhere between 10-20 properties generally at any given time. I could take on more, but I prefer having a curated list of VERY profitable ones while still operating at scale.

I have hosted over 6,500 different groups and made more than $10M in the process, currently about $1.5-$2M annually.

During this time, I have helped push countless friends & family into the business, many of which have quit their jobs and do this full time. They are operating profitable businesses here in California, Washington and also Florida.

While I have taught so many close to me about this business, I am now helping others with all of the knowledge that I have learned over the years and the systems I have put in place to operate efficiently and without needing me on a day-to-day basis.

The aspects of the business that I love, I still do myself (mostly design related and building systems), and the other aspects I outsource to my team around me.

Everyone else can build this same sort of team and system around them- and I am here to show you how.

One of my properties

Why do I prefer Rental Arbitrage?

 Rental arbitrage is when you rent a home at one price at a long term lease rate, and then you re-rent the property as a short term rental (Airbnb & VRBO) at a higher rate. The majority of  ‘my’ portfolio of properties, is through rental arbitrage, using long term leases that I still have flexibility to get out of if I choose, for whatever reason.

I am not against owning real estate, quite the opposite actually. I just believe WHEN you buy is important.

I bought near the top of the real estate cycle back in 2007, and it took me nearly 8 years to have a dollar of equity in that property.

I’ve learned from my mistakes. See the simple example in the next section.

One of my properties

Minimizing losses

 As an example, if you take a 30% depreciation in value, it will take you approximately 43% in gains to get back to even.

That’s an uphill battle I don’t want to fight.

 

That’s why I prefer to buy at the bottom, and rent (in this case arbitrage) at the top.

As the market has not had a proper correction in some time- for now I am a HUGE fan of the amazing cash flow from doing Airbnb rental arbitrage.

I will purchase again in the future when the market comes down, but I will ALWAYS do arbitrage as well.

 

Real estate is also expensive.

Real estate is also expensive, and having the capital to own a large portfolio is difficult for most (depends where, but in So Cal it is).

However, expanding at scale without needing to own the real estate and still get the amazing benefits of the cash flow, is very possible for most. 

Not to mention, the capital expenses that the owners pay for when things go wrong (HVAC’s, pool equipment, new roof, etc). 

I find property owners who want a stable tenant, who will take excellent care of the property (myself), and I rent from them.

Then with their permission, I re-rent the property at a higher rate.

Airbnb Rental Arbitrage is what this is.

You can of course own properties and do short term rentals that way (as I do as well), but not everybody has the capital to do so.

I have been one of the top operators of Airbnb’s in my market for over 10 years.

The process is the same to run a profitable Airbnb, and the people I help are mostly into Airbnb arbitrage, but owners as well.

Grab the FREE e-Book

The Playbook- Airbnb Rental Arbitrage

Grab the FREE e-Book

The Playbook- Airbnb Rental Arbitrage

This document is the exact "Playbook" or Blueprint that I have used to build my Airbnb Rental Empire over the last 10 + years in the Short Term Rental Space.

Filled with the roadmap you need to get your entrepreneurial journey started.

Actionable advice, no BS.

 

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