Rental arbitrage is scam or not

[Ryan Daulton]

I had somebody contact me about investing in their rental arbitrage. She said that if I pay $42,000 for the next 18 months, that she guarantees I will at least get this 42,000 back by the end of 18 months but probably much more.  It would cost me only $2300 per month which includes rent utilities furnishing and property management. 

she showed me one example only of a customer who profited greatly. What sorts of questions can I ask her to learn how much risk this is? 

although I'm skeptical of going with her service, it is pretty logical because she would be helping me rent out a property long-term but sublease it for Airbnb. Since Airbnb rents per day are much higher than LTR, there is great profitability.

[Drew Sygit]

@Ryan Daulton 

So, you want to believe in fairy tales and challenge us to prove them wrong?

Bernie Madoff made guarantees to his clients, so did Charles Ponzi - the "inventor" of the Ponzi Scheme.

How will the guarantees be guaranteed? 

Who is personally going to be liable if the guarantees aren't met?
- Also, what is their networth, so they are legally collectible for the guarantees?

Or, what assets are going to back up the guarantees?

Wait, I get it, their online reputation will be enough of a guarantee for you!

Good luck...