A short monologue from a January 2024 YouTube video giving practical real-estate investing advice: evaluate rental properties by area and quality (grades A–C), focus on tenant retention and modest rent growth rather than chasing small percentage increases, and be patient to realize large cash-on-cash returns over 5–7 years.
People think these small percentages they look at, oh, it's only 3% increase in rents. I'm going to go find a different house. No. Can this house stay reasonably rented? Is it one that is in a good area? Is it? What type of grade are we talking about? A C grade house is an A grade house. What type of house is it? Look at all the factors. Just by having somebody stay in there long term, look at that growth. You will, within your five, six or seven, you'll see some massive cash on cash return. But you got to be patient.
Physicians and High Earners — What Real Estate Can and Can't Do for Your Taxes
