Subletting for Positive Cash Flow?

[Lyuyuan Zhao]

Hi everyone,

I am 19 years old and a freshman at UBC (Vancouver). I recently became very passionate about real estate, and decide to do some investing this summer.

I currently rent a small basement room for $800/month. However, I just found another apartment room only costs 560/month. The room is closer to the campus and right in the university's commercial centre (so better location and maybe better condition). I looked at the place and believe that I can sublet it for $700, creating a  $40 cash flow with no money down (so technically infinite returns). This prospect, though small, does excite me, since it can be my first baby step in real estate.

In Brandon Turner's book about no money down real estate investing, this strategy is not covered. Why not? I did a quick research and it seems many people are doing it and there isn't anything wrong ethically or legally, so is there something wrong in subletting for profits that I'm missing?

Thank you very much and good luck on your journey too!

Lyuyuan