Arbitrage is when an investor purchases an investment property below market value and quickly sells or rents it for a profit. Real estate arbitrage occurs when a real estate investor purchases an investment property and sells it simultaneously at a higher price.In real estate arbitrage, used as a verb "arbitraging," means to buy one property and then sell that same property for a profit. Arbitrage in real estate refers to the practice of taking advantage of price differences between markets or formats to make a profit. Arbitrage in real estate is a type of investment strategy where real estate investors find new investment properties, rent them, and then sublease them. Arbitrage is a condition where you can simultaneously buy and sell the same or similar product or asset at different prices, resulting in a risk-free profit. Rental arbitrage is a real estate investing strategy to capture the spread between a property's long-term rental rate and short-term rental potential. A common real estate investing rule a savvy real estate investor follows is to pay no more than 100X the monthly rent as the purchase price. The cover is showcasing Sabal. Real estate values tend to be correlated with the availability and affordability of mortgages.