Arbitrage is when an investor purchases an investment property below market value and quickly sells or rents it for a profit. Rental Arbitrage is a method similar to house hacking.But unlike house hacking in Rental Arbitrage, you don't own the house. 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. Rental arbitrage is the practice of renting out a longterm rental on a shortterm basis. Arbitrage involves purchasing an asset at a lesser price in one market and then selling it at a higher price in another. Arbitrage in real estate is a type of investment strategy where real estate investors find new investment properties, rent them, and then sublease them. A tourist home cannot be located within 400 feet of a rooming house or another tourist home.