Can You Still Find On-Market, Cash Flowing Rentals in 2024? (We Found Some)

Despite what you hear, you can find great deals on the market all across the country right now. And today we're going to prove it.

Hey, everyone, it's Dave. And today's show is a simple challenge. I am joined by Henry Washington and Ashley Kerr, and I've asked each of them to find one deal that they would actually do right now or consider right now on the MLS if they had $75,000 to invest. Hey, Ashley, thanks for joining us again.

Yes, Dave, thanks for having me.

And Henry, always good to have you back.

What's up, buddy? Glad to be here.

I love doing the shows, the three of us. I feel like it's always supposed to be research and we just turned it into a competition. So I'm looking forward to competing with you two to find the best deal on the market right now. And the reason we're doing the show is that I think a lot of people may hear or think that finding solid investment properties right now you need to pound the pavement for off market deals or you need to start with hundreds of thousands of dollars. Both of those are good things to have, but they're not the only ways to get started and not even the ways I necessarily recommend for most people. So let's talk about some real deals that we found. The parameters for this challenge was to start with a hypothetical $75,000. We had to find deals that were on the MLS and we had to account for things like closing costs, cash reserves, and maybe if you were going to do a renovation in your deal, you to account for that too. And we also, because we talk about house hacking frequently on the show, decided that this could not be a house hack. So let's jump into the deals. Ashley, I'll start with you. How did you go about this challenge? Where did your thinking and research start?

Yeah, so I took the rookie mindset of I want kind of low risk if this was my first deal and some kind of security safety nets. So I looked within my market. So, you know, as a rookie investor, I'm building my team within my market because maybe I already have connections, opportunities. So I looked within the Buffalo area and that kind of gave me a sense of comfort, ability, I guess. So I narrowed in on a neighborhood, West Seneca. So I actually have some investments really close to that in South Buffalo right now. And this West Seneca area is kind of the overflow, I would say, from the higher end area of South Buffalo.

Okay.

So I found a single family home. One thing that I was looking for is that the price point was under 200,000. So I'm not spending all of my 75k just on the down payment. And then I was also looking for a property that had very light value add. So I actually came across a single family home that was a two bed, one bath, listed at 180,000. The thing that stood out to me was that it's 1,220 square feet, which is actually pretty big for a two bedroom house. So I'm going into this thinking that I could add a third bedroom to this property. So just judging by the pictures, it looks like on the second floor you could turn the one bedroom into two bedrooms because it's so massive.

Oh, yeah, for sure.

Putting in a little bit of value add of adding a wall, adding a closet, adding a door, and then the rest of the property, you know, you. I put into like my rehab budget to paint it. So I had about 5k of expenses. Just very, very minor because it's pretty much turnkey and rentable as it is.

Okay, so let's break down some of that. So you said you wanted it under 200,000. How do you come up with that number specifically?

Yes. So I didn't want to spend all of my 75,000. So I'm looking at if I'm coming in and doing 20% down on the property. So buying at 180,000, this would be about $36,000 down. So that still leaves me a lot of money for reserves and then closing costs. I calculated about like three and a half percent. So that's around 6,305 grand in the rehab, creating that third bedroom and just touching up some paint, redoing some paint in the rooms just to freshen it up. Or about 47,000. I'm spending of that 75,000.

All right.

You're coming in under budget. That's very, very impressive.

So part of that reasoning was that I would have that extra money left over for reserves.

Okay. Yeah.

And that way it would make me feel secure on my first deal that if something really bad happened, like the furnace goes in the first week of ownership, I have that money to put into the property. So I'm saving that for capital improvements on the property. And my kind of exit strategy on this is to hold it for five years and then to sell it, maybe do a 1031 exchange scale up into the next property.

Yeah, I love that idea about the reserves because I'm looking at the photos here, it actually looks like a pretty nice house. It seems like it's in close to renting condition, at least. In the interior. It's kind of hard to tell. Yeah, obviously from photos, but probably, you know, an older house. You're going to need some reserves there. Ashley, once you add a third bedroom, what do you think you could get for rent here?

So I actually talked to a couple other investors as to what they rent theirs for. And once turning it into a three bedroom, I could get around 1600amonth for rent. 1650 around there, especially with it being a single family home. A lot of the apartments that were three bedrooms were going for around 1500. But the single family home gave it more value that you're not in an apartment complex.

Yeah, it has a big lot, so like a 6,000 square foot lot. There's a garage on the property too. So there's definitely some nice amenities here. So would that cash flow at 1600, 1650 with the purchase price and the renovation costs.

So you're looking at a total monthly payment for, for your escrow. So your property taxes, your insurance, your principal and your interest of about 1254.

Okay.

So definitely not a ton of cash flow. And then if you count in 15% for reserves, so repairs, maintenance, capex at vacancy, that's about another 250, that 15%. So that only leaves $150 of cash flow. But since I already have my reserves in place that I'm already banking on, I'm not going to be saving that 250. So then it ends up being about 400 bucks cash flow a month.

Oh, that's great. That's a very solid deal.

But one of the things that really sold me was the appreciation in this property. As far as in the last five years, this area has seen 63% appreciation.

Wow.

So just modestly, like obviously we've had a crazy market the last five years, but just modestly, if say there was only 45%, that would be 81,000 in appreciation plus $10,000 mortgage pay down. Plus say I'm only getting $200 in cash flow a month, that's another 12,000. So it ends up being in five years you would have 103,000 from mortgage pay down, your appreciation in the property and then the cash flow you've gained over the years.

So and that's investing, what was it, like 60 grand total?

Yeah.

So you're like doubling up your investment? Basically.

Yeah. So also this area, they have a upstate Niagara which is like a milk and dairy processor and they are adding an expansion to their plant where it's going to be a 54% increase in jobs too.

Wow.

That's in that neighborhood.

And you said also this neighborhood was sort of on the fringe of one of the nicer, more established neighborhoods as well. Yeah, that's always good. Like, if you took this house and transplanted it into that South Buffalo area, do you have any sense of what the, what it would cost?

It definitely wouldn't be 179,000. It would definitely be more like probably 225, I would say.

Yeah. So that, I mean, that gives you. Obviously when we look at appreciation, it's backward looking, but when you think of it sort of in that way, it shows you that there is more room for appreciation in nearby neighborhoods. That prices are, you know, was that 30% higher, 40% higher. So that is definitely encouraging for appreciation prospects. All right, well, well done, Ashley, on this challenge. One question for you. You know, we gave you this assignment looking on market. Do you think these types of deals or on market deals in Buffalo are feasible for rookie investors or any sort of investor?

Yeah, because I think this is a safe deal. It's a low risk. You're in an area that's getting a little bit of cash. If you have the 75,000, you're not using all of your money and like scraping by that you have that. And then also I think like the little bit of cash flow, the appreciation in this area, the job growth that's happening there, even like people that were moving into this neighborhood, I don't remember the percentage in the last year, but like that was an increase in population of people moving into the area too. So I would say, especially if you're in the Buffalo market and you have already some team members in place, that this would be a good area and a good property to look into.

Awesome. Well, thank you. Mission accomplished on this deal. You were able to find an on market deal for under 75 grand. You are in that Lake Effect cash flow area though, so that you do have a leg up in your own home market. All right, it is time for a break. Stick with us. On the BiggerPockets Real Estate Podcast.

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Welcome back to this week's Deep Dish. Let's jump back in. Let's move on to Henry. Henry, does this assignment just in general go against everything you believe in? I know absolutely. Finding off market deals and that's why I wanted you to come and make you do do this?

Absolutely. I much prefer going direct to seller and I much prefer to invest in my Backyard. But since the challenge was to have or find a deal on the market that's not easy to find in my backyard, so I had to get all outside of my comfort zone.

All right, well, where did your uncomfort zone take you?

Well, I did have a bit of a leg up being that, you know, I do a lot of research for multiple shows that we record. And so I have looked into this market previously and took it as an advantage to go ahead and do it again. And so I chose Racing Wisconsin.

Of course you did. Of course you did.

Surprise, surprise.

If you don't listen to the show or on the market, Henry and I for some reason are always talking about racing Wisconsin. It just comes up in like every conversation statement.

I first learned about it when I was watching like an episode of my first million or whatever it is on HGTV where people win the lottery and then try to buy a house. And these people were buying and racing and like just what I saw of the town and the price points. And I was like, man, this looks like a cool place. And then it was right in between Milwaukee and Chicago. And so part of the reason I chose the market is because of its proximity to Milwaukee and Chicago. There's a heavy working class population that lives there, but works either in the Milwaukee or Chicago area for a lot of the major corporations that are headquartered there. Also SC Johnson is headquartered in Racine, Wisconsin itself.

Oh really?

There's, there's a big working population and so there's heavy demand for rental properties, but the price points are really, really affordable. And so you can get singles and multis on the market. That cash flow there. Now, the one downside that you would say for a market like Racine, Wisconsin is that doesn't have a lot of appreciation or hasn't historically had a lot of appreciation. But I feel like it's a really good time to be buying in this market because the city has been investing in infrastructure in and around the corridor in between Milwaukee and Chicago. So they're putting in more transportation options to take people to and from those cities. You've got other companies like Amazon building warehouses in and around that area. There's just a lot of growth. And then the city's revitalizing the downtown areas are pouring a lot of money into growing this area because the population is starting to grow, because some people are moving away from the bigger cities to more affordable areas so that they can afford to buy. And so I think appreciation may be coming in the future. I know it's a speculation, but the Price points are so low and you can get the cash flow that it makes it reasonable to go ahead and invest and have some speculation because you're going to be making cash flow in the meantime.

Well, it's, yeah, it's not speculation if there's another way to make money. Like the way I think of it is like when you, if you're only counting on appreciation, at least to me that's speculation. If you are making money elsewhere either through value add or through cash flow and then the market appreciation is like the cherry on top, that's a different situation in my mind because you're probably through cash flow and amortization still doing better than the stock market or what you would do with your money elsewhere. So this is just like a better use. And to your point about investments like Henry and I were actually just talking about this yesterday Racing and so I was googling it like businesses that were moving there. And just in the last year Microsoft announced it was investing $1 billion into a data center there. We saw other big companies like Central Storage Warehouse. I didn't even know what they were but they're some big company investing millions of. The one that really got me is Nestle USA announced a $70 million investment to expand their cookie dough operation in Racine, Wisconsin. Yeah, that is enough. If my wife hears me say that we're going to be moving to Racine, Wisconsin. So.

I'm all in on this. This one makes a lot of sense. So you explain the reasoning behind Racine. Well, like what do the deals look like in this area?

Yeah man, the price points are fairly low. So what I was looking for was a. I wanted to find a multif but I wanted to find one that didn't need a ton of work, that was pretty much turnkey and could make money from day one, but maybe had some potential for value add because again I don't live there, I haven't built a team there yet. And so I didn't want to have to take on a big construction project if I didn't need to. And so I found a duplex. It's a five bed, currently five bed, three bathroom duplex in Racing, Wisconsin. And the list price, the price has recently dropped so it's down to 147 000. Wow. For this purchase. Now this is one where if this was something I was going to go forward and buy, you have to get some boots on the ground and go in and take a look at this because looking at the pictures and reading the description, it's hard to tell kind of how the unit mix is. It seems on its surface like it is maybe three or four bedrooms upstairs with two bathrooms and then one bedroom, maybe two, two downstairs and a half bath downstairs. And so a couple of ways to look at it. So with $147,000 price point, if I'm buying it and putting 20 down, that's about a $30,000 down payment that you would have to put down. But a four bedroom in that market's probably going to rent for 1500, 1600. So yeah, just alone, just one of.

The units is 1% rule.

Is 1% rule. Right. So if I do nothing, I'm, I'm probably sitting pretty good. Mortgage payment's gonna be somewhere around 8, 8:50. Plus you got your expenses and whatnot. So you're probably doing okay on the cash flow perspective with just the one unit. Now if you go and spend 10 to $15,000, maybe less depending on how you know how, how much it's really going to take you to get that work done, to add a shower or a bathtub and that downstairs bathroom because there is space down there that's not accounted for in the square footage. So you're able to turn that half bath into a full bath. And then you've got a 2:1 downstairs and you can get about $900 a month rent out of that. And then you're really cooking with gas on the cash flow. So.

So if you do that Henry, 150, it's like 37, 500 exactly. I just did that on a calculator for is, is the down payment. So you have basically double that. So you have another 37,000 for your cash reserves, your down payment. And then given what Henry was saying, he doesn't see in this deal. And so if he needs to go and actually put in 10 grand to it, he has plenty left over.

Absolutely. And then still have plenty left over for reserves. The other thing I wanted to look for was a lot of these homes in this market are going to be older homes. They're just, it's just the, the mix of properties that are around there. And so I didn't want to get myself into a situation where I've got high capex in the next next three to five years. And so I wanted something where there wasn't a lot of the big ticket items that need maintenance. So I like that this property has a newer roof. I like that this property has newer siding. I like that this property has vinyl windows all the way around. So a lot of that big ticket stuff that can really eat into your cash flow is already taken care of.

Yeah. And especially, you know, we've on the three of us have talked about Great Lakes region. A lot of the housing stock is super old. And so trying to find places that do have some of these key upgrades can be challenging in certain markets. But it sounds like this one has some of those big capex items that are already handled for you.

Yeah, man, I think this is a pretty safe ish investment. You know, that being that it's, you know, out of my comfort zone in terms of location and not having a team, I think you, you really got to be careful with some of those big ticket items on some of these older homes and. But having something where that's covered, plus it's been remodeled inside as well and cash flows as it sits, even if you don't have to add the bathroom. Like all those are a win in my book.

I love it. I mean, it sounds like this would be right for an investor who wants to prioritize cash flow, who doesn't want to do a lot of work. Maybe a little bit like you said, like you'd have to get in there and find out. But if you wanted to invest out of state, this is a pretty good place to do it. I like the idea of being between two major cities. I have always loved the idea of like the satellite city philosophy. Like you go between or close to some big cities because there's always overflow, they're usually more affordable and over time they just grow. So I think this one is fundamentally sound. And congratulations, man. I know this was a big, this was a big moment for you looking at a deal. Even pretending to look for a deal on market, it was like a big step for you.

It's very uncomfort. I'm still, I'm still not quite great with it, but, you know, you know, for my hypothetical $75,000, I can do it.

And Henry too. Another thing with your deal is that it just sold in 2022 for a hundred thousand. So they do sell it at that 147. I mean, I don't know how much work was done or what they put into it, but like, that's some appreciation right there.

Absolutely, absolutely. I think it's only going to get better there.

It's time for a break. Stick with us. On the BiggerPockets Real Estate Podcast, when.

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All right, we're back. Here's more of our $75,000 on market challenge. All right, well, I'll share with you my deal. So the way I went about this, I sort of took a data first approach. Shocking, I know, but basically what I did was I figured out I want to keep 5,000 bucks for cash reserves. I'm going to keep $5,000 for closing costs and just five grand for whatever, you know, just getting make ready kind of costs. And so when you think about that, it comes out to a price point. You can afford something at about 260, $275,000 if you're going to put 25% down, which me as an out of state investor, I'm going to do that. And then I started going through some of the research and data sets that I have at Biggerpockets and I decided I would set an upper bo of the median home price at about $325,000. And if you're wondering why I just said I could spend 275 and I'm looking for markets that have average of 325, it's because I'm going to buy something below the average. And I think that's usually what I would try and do in these types of situations where you're looking for cash flow or you're looking for a value add opportunity, you don't have to buy right at the middle. And if the median of a market is 325, it means there's going to be half of the deals are going to be cheaper than that. So I wanted to open myself up for that that I went through and looked for a bunch of different markets that met sort of just basic criteria for me which are that price point, the population has to be growing, there has to be job growth. And I wanted to see something that had a reasonable chance of cash flow given the rent to price ratio. So I looked for something that was like 0.6 or above. And there was plenty of markets there. Just for everyone who's thinking. Henry Ashley and I have cherry picked three markets. There is was probably 70 that met those criteria. I don't know if all of them would be great but like there were 70 that met my list and from those I picked three markets that I would go and research. So the three I picked were Fayetteville, North Carolina, you guys know anything about that? I've heard it's good. Right. I think there's like a military base there. It's a big military town. So I checked that out. Clarksville, Tennessee. Didn't know anything about that until I looked at it. And then Tulsa, Oklahoma, and good market it. Yeah. So I looked first in Fayetteville because I just, I like the idea of North Carolina for some reason. Like, there's just a lot going on there. But I couldn't find any deals there. Even though on paper it made a lot of sense. There just wasn't a lot of inventory in the type of properties I'd be looking for. And so I just want to caution, even though I talk about data all the time, that that clearly doesn't tell you everything. It just helps you narrow down potential areas to invest in. But in honestly, 10 minutes of looking around in the bigger pockets. Deal finder, like, I just wasn't getting a good vibe for the type of properties that I could afford there.

Dave, what were you looking for? Was it like single family, small, multifamily.

Either and the small multifamily was out of the price range. It wasn't. I couldn't find anything for 270. So then I started looking at single family homes and it was good, but the rents were just too low. So like for a $200,000 property, 1800, I was seeing rents at like 1200 bucks. Oh, you know.

Wow.

Yeah. Yeah. And even if you renovated them, you know, you could maybe get them to 1500. So that just like wasn't passing the sniff test. So I moved on to Clarksville, Tennessee and sort of had the same thing there. Rents were even lower there. Clarksville does seem like a appreciation play, but my philosophy about out of state investing is to do what I call is like a hybrid market where you at least get a little bit of cash flow and then you look for upside. And since both of those, I didn't think I could get it. I moved on to Tulsa, Oklahoma and I found a great deal like within minutes. So what I found was a single family home. It is really close to the middle of Tulsa and I don't know the market that well, but this is like a Super nice house. Four bed, two bath, 1900 square feet, recently renovated. Everything looks brand new. I think it's vinyl plank flooring, but it looks super nice. The kitchen is really like an ideal kitchen. It has a nice two story layout. Like I would live in this house. It's super nice and it's on the market for just 210,000. So less than the national average. And the estimated rent for this is 2104. So it's right almost exactly at the 1% rule. Now, the one thing I learned about Oklahoma is that insurance costs are very expensive there. I looked at that because I at one point was considering investing in Oklahoma City and the average insurance there is like seven grand a year. It's crazy.

Oh my God.

Yeah.

Is that because of tornadoes or maybe.

I don't know anything about weather, but.

Like not that many. There's not that many insurance.

Yeah, right. Like exactly. Like maybe you get a couple every, every few years and even when they come, they don't do the damage on the scale of like a wildfire or a hurricane. So I don't know what's going on there, but they're super expensive. And even in Tulsa, Insurance costs were 6 grand a year for a $200,000 house, which, like, as a ratio is insane. But even with that, if I could get that 2,100 bucks a month and I could pay 200 grand for it instead of 210, and I don't know if that's possible, but it's been sitting on the market for 45 days now, considerably longer than the average in that market. So suggesting it might be a little bit overpriced. I could get a cash on cash return of 5.6% on this. Unlike a recently remodeled super nice deal that probably would have relatively low capex. I still put my normal capex in there and assume that I would need to put in considerable amount of maintenance at capex and still got 5.6% on this deal. So I thought this one was, was pretty encouraging.

Yeah, I just googled real quick the insurance thing and it says like Oklahoma is named most expensive state for insurance. And it said it was because of severe storms that have gone through, as in like billion dollar payouts that insurance companies are having to do. And just like in the last year there was eight huge severe storms where insurance company had huge payouts. And like most other states have to deal with like two a year or something like that.

Huh.

I wonder if that's like in Colorado, you know, in Denver you wouldn't expect it, but there's like really bad hail. And so insurance companies are always buying new roofs for people essentially because the hail damage, which is something you don't really think about in terms of weather, but it can be. I mean, you can ask my car. It looks like a golf ball. It's pretty bad hail.

So this looks Like a house that was flipped because it sold in 2023 for 87,000.

Yeah, this is a flip.

And I have bought flipped homes before with mixed results. But I would definitely want to go and get a good discussion with the person who flipped it and get a good inspection on there too. Because sometimes people, you know, do the lipstick on a pig approach to flipping. Some people do good, good work. It's. It depends who you get.

But the property taxes look really cheap.

Yeah, Ashley, as you said that that really offset the price of the insurance, the taxes on this property for a year or 600 bucks box. So when you look at insurance and tax together at 5,600 bucks, it's still a lot for a $200,000 property. But it's it, it averages out to a much better number.

Here's some things I like about this property. It looks like they put all new windows in, vinyl windows in the house. So that's huge because this house looks like it has a lot of windows and that's a big expense. The things I would look out for on a property like this are that roof looks like a, it could be pretty old.

Okay.

So you may have a, a capex roof expense coming up in the next five years. And you got to get that tree away from that side of the house with the, with the wind and the storms, you don't want that laying on your house. Oh, and this, the siding looks like it's still the original. Like they just painted it.

Yeah, they put like some of that cedar plank on the bottom before. But the most of it's original to.

Cover up the asbestos, I'm sure.

Yes. But I will say that with this price point, I set aside 15 grand for.

Make ready costs. So maybe wouldn't buy a new roof and new siding, but hopefully one of those would be in good enough shape.

If you go to the Google street view, you can see the before and it definitely is a huge difference.

Boy.

What?

The street view.

Is that a good old boy or a bad old boy?

It looked like it could have been a tear down, buddy. I checked that roof and that structure, so I checked the foundation in that.

Oh yeah. Okay. Yeah, there's a lot of plant life going on in the street.

Yeah. So I mean, obviously we're just looking at these things on market, but you would have to, of course, check these out a little bit more. I mean, some of the other houses on the street are actually pretty nice manicured. It looks kind of like a mixed neighborhood. You would have to do some more research.

Which could be great for appreciation. It's an area that's. That's turning over for sure.

Yeah. And like, there are a couple like this one in Street View is run down. But the, you know, pride of ownership on some of the other places I'm seeing are pretty high. People have well maintained lawns, nice houses. So couldn't tell you for sure, but if you wanted to invest in Tulsa, you would hopefully do your due diligence. But hopefully this has been helpful to all of you, just seeing that these kinds of deals are possible. Each of us, I know, spent a little bit of time, but we're able to find plausible deals in just a couple minutes with these parameters. If you're going to invest again, do more research than we did. But this was just a fun game to see if we could find on market deals that work. And I think the answer is yes. So, Ashley, Henry, thank you guys so much for this challenge. I appreciate you doing the homework and sharing what you found with us.

Dave, we really want to start having a winner at the end of the episode. Henry and I put a lot of work into this homework.

Okay.

So, you know, for next time when you have us on a challenge, we need to have some definitive measurement.

Well, I competed too, so I think we all need to vote, but we just can't vote for ourselves. Okay, Ashley, who would you vote for, me or Henry?

I'm gonna vote for yours, Dave, because a couple red flags in Henry's was. It was five bed, three bath with only a thousand square feet. So I'm afraid some of that is not permitted. Will need to be ripped out. That was a red flag for me then also, it went pending twice and fell out of contract.

Oh, okay.

So I'm gonna go. I'm gonna go with Dave's deal.

Henry, what's yours? Would you vote for mine or Ashley's?

I would vote for Ashley's.

Okay.

I think yours the numbers pencil. But seeing that before, I would want to do all lid inspection.

Check out that foundation and that roof. I think those could be big problems.

Because it's not a huge difference from what they bought it from to what they're selling it for. So, like, that would make me a little cautious too, with yours. Day of two.

Yeah. It's like, did you make no money on this or did you invest no money?

Let's guess which one they chose. Well, Ashley, I think you're the winner. Although I love Racine, I do think you're just knowledge of your own market and knowing this neighborhood really well. Would make me feel like I wanted to invest in. If it were me investing in one of these deals, I would pick that.

So Ashley, I will put on my crown.

Until next time, one point for you. We'll have to keep a tally going forward if we keep doing these challenges, but next time I'm docking you. If you just keep saying buffalo every time.

Or anywhere in the lake effect snow, I'll be banned from doing.

Hey, you made me get out of my comfort zone. Next time we're making her do it.

Yeah, yeah, yeah. We're going to just do a whole challenge about Northwest Arkansas so Henry can get a point.

All right, well, thank you so much for listening to this episode of the Bigger Pockets podcast. We'll see you in a couple of days. And if you like this episode, please make sure to share this with someone who you think would like it as well. Or leave us a review on either Apple, Spotify or YouTube. See you in a few days. Thank you all for listening to the BiggerPockets Real Estate Podcast. Make sure you get all our new episodes by subscribing on YouTube, Apple, Apple, Spotify, or any other podcast platform. Our new episodes come out Monday, Wednesday and Friday. I'm the host and executive producer of the show, Dave Meyer. The show is produced by Ian K. Copywriting is by Calico, Content and editing is by Exodus Media. If you'd like to learn more about real estate investing or to sign up for our free newsletter, please visit www.biggerpockets.com. the content of this podcast is for informational purposes only. All host and participant opinions are their own. Investment in any asset, real estate included, involves risk, so use your best judgment and consult with qualified advisors before investing. You should only risk capital you can afford to lo. And remember, past performance is not indicative of future results. BiggerPockets LLC disclaims all liability for direct, indirect, consequential or other damages arising from a reliance on information presented in this podcast.