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.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. Real estate arbitrage is a strategy that involves taking advantage of price differences in the real estate market to generate profits. 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 means profiting from price differences or market inefficiencies. Real estate arbitrage refers to the practice of taking advantage of price differences in different markets or times 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. Financial arbitrage in real estate involves using various financial instruments to hedge or leverage your investments. Maryland Department of Housing and Community Development.