3 Types of Rentals That Make You Rich in 2025 (Actual Deals)

Dave:
You can buy a quality rental property today at almost any price point, whether that’s 50 grand, 200 grand, or 600 grand, whatever the price point. You need to know how to find the value in your particular market, and you need to think through how to operate your property to maximize your returns. But starting or growing your real estate portfolio is completely doable. Even with current prices and interest rates. Today, three professional investors will teach you how they’re investing for long-term wealth creation right now. Hey everyone. I’m Dave Meyer, head of Real Estate Investing at BiggerPockets, where we teach you how to achieve financial freedom through real estate. And today on the podcast, I am joined by three expert investors who are my co-hosts on the market podcast, James Dainard, Kathy Fettke, and Henry Washington. James, Kathy, and Henry are each going to tell us about an investment property that they’ve bought within the last few months with purchase prices ranging from 55 grand, so sort of at the low end of the spectrum, all the way up to 600 grand at the high end of the spectrum. Well, thank you guys for being here. Kathy, great to see you.

Kathy:
Great to see you. Can’t wait to hear what these guys are up to now.

Dave:
Are you nervous? I mean, not that this is a competition, but we always make it

Kathy:
Fun. It’s going to be a competition. It always is, even if it’s unsaid.

Dave:
Okay, well, you usually hang pretty well in these competitions, so we’ll see. James, how are you doing? I’m good. And it doesn’t need to be said. It’s always a competition. Henry, good to see you, man.

Henry:
Hey, glad to be here. This is always a competition and I want to win this time.

Dave:
Alright, well, I’ll give you guys a little bit of a spoiler because I’ve read a little bit about the deals. We know that so far that Henry’s house that he’s bringing to win, apparently with a house full of spiders when he closed, but it’ll be a part-time vacation home for his family. Kathy found an incredible upside opportunity in one of the US largest and fastest growing cities, and James is getting super creative with a multi-part strategy to create profit other investors may have overlooked. So whether you’re a new investor, you’ve been in real estate for a long time, today’s show, we’ll have some great ideas to get the wheels turning on your own next property. Let’s get into it. All right, Henry, I’m going to pick on you. You have to go first and share the deal that you’re doing.

Henry:
Yeah, we’ve got a single family home that we purchased. It is coincidentally across the street from a lake and it’s arguably the second nastiest house I’ve ever bought. It was so riddled with brown recluse spiders and webbs. You got me there. So first of all, when you walked in, you walk into a sunroom, the sunroom literally three inches thick on the ground of just cigarette butts. Like this guy would just smoke his cigarettes and then throw his butts out on the sunroom. And then when you get into the house, I took one step in and I was like, no, I’m good. So you had to get a stick of some kind and then you just had to wave it around in front of you from all the cobwebs.

Dave:
Oh, it’s like when they make cotton candy, they take that little thing and roll it around.

Henry:
It was literally just like a thick stick of cotton candy except spiderwebs. And then the subfloors were so rotted away that we just had to put two by fours down so that we have something sturdy to walk on. I thought I was just going to fall through the floor.

James:
You know what though? I like that Henry said that this is the most realistic deal. Who wants to buy a house where you’re going to fall down and get killed by spiders within the first 30 seconds? It’s realistic though, Henry.

Henry:
It is realistic. Our listeners can afford it. We haven’t talked to years yet.

Dave:
What did you like about it? I’ve heard some things that would turn me off, but what was attractive about this too?

Henry:
I liked that it was across the street from the lake. I liked that I could buy it for $55,000. I think we paid for it.

Dave:
Oh yeah. That’s something to,

Henry:
I mean, it needed more put into it than I paid for it, so we’re putting 90 grand into it. But the a RV on the house is 2 65, conservatively probably closer to 2 75, 2 85. And if we want to long-term rent it, we could easily get $1,800 a month mostly because as we bought it, it was a three bed, one and a half bath, but we were able to steal some room from a couple of closets and we made it a full three bed, two bath. So $1,800 a month long-term rent. But we’re going to actually short-term rent it because it’s across the street from the lake and I just want to be able to take my family there and do lake stuff. I don’t really know what lake stuff means because I’m not an outdoorsy person, but we’re going to figure it out.

Dave:
You will find out soon.

Henry:
Yeah.

Kathy:
I got to ask you about this lake though, because there’s different, there’s bougie lakes, there’s redneck lakes, and there’s lakes you don’t want to go near, what are we talking?

Henry:
I’m going to say one word and then you tell me what kind of lake. It’s Arkansas. No, no. It is a pretty lake. There’s actually a deck and pier that you can walk up to and fish off of. They even have a fishing house, so in it’s cold outside and go inside the little house and fish down into the lake from the little house and there’s a boat dock and all kinds of stuff. So it’s actually, there’s really nice

Kathy:
Sounds, amazing

Henry:
Lakes in this community.

Kathy:
Oh, nice.

Henry:
And so I like the price point. I like that I have multiple exit strategies. I can sell this one if I wanted to and make a pretty decent profit. Like I said, ARV is pretty high. I could long-term rent it for $1,800 a month and cashflow the property or I can short-term rent it, which is what we’re going to do. And we’re estimating to make about $3,000 a month on the short-term rent. But the real reason I want to short-term rent it is because I haven’t been able to get my wife to agree to let me put a golf simulator in my personal home. But if it’s for a short-term rental and it’s going to bring us more income, I have gotten her agreed to, let me put it in the short-term rental, which is only a 20 minute drive from my house. It’s basically my own personal title. Be

Kathy:
Like, is Henry working on that house again?

Dave:
What could possibly be wrong with it? Now wait, I have to ask you about this. I was going to put one in my short-term rental. I have this detached garage that I don’t use for anything right now, but I was worried that people were going to break it like you need a computer and a software. Are you worried about that at all?

Henry:
There’s cases that you can get for your launch monitor that can secure your launch monitor to the ground so that no one can take it. And then you can also lock your computer up in a case so that no one can take that. Just a key to entry case. So yeah,

Dave:
Maybe I have to come visit you in person and see how you created this just so I can replicate it

Henry:
If you want to come and do some market research or I can come out there and consult and tell you exactly how to set all this up. It’s a writeup. Yeah, easy

James:
Peasy. But Henry, so you buy this house, it’s got no floors, it’s got lots of spiders. What does the permitting take? Because for us, if we had to wait nine months for a permit, it can be all the profit in the deal.

Henry:
Yeah, no, that’s a great question. Actually, the permitting process was really easy actually. I just went to the permit office and told them what I was going to do and then they made me draw it out for them and I did. And then you pay for the permit and they issue it till you pretty much on the spot as long as you’re not asking to do something that doesn’t conform to their normal standards. So I’m wanting to build a deck over the driveway of this property because the elevation is so steep that I don’t want anybody to park at the top of the driveway. And so I actually want to build a deck over the steepest part. But the rules in this community say that every house has to have either a carport or a garage. And so when I asked them to do that, they said I’d have to come to the meeting and present and get approval and then they give me a permit. So as long as what you’re asking for is within their normal standards, you can get a permit pretty quick. If it’s not, then got to go present.

Dave:
And how did you finance this Henry? Because I imagine this deal you could not get a conventional loan on. So how’d you make this one work?

Henry:
No, this was similar to a hard money loan. I financed almost a hundred percent. I think I had to put about $5,000 down at a mile money, but they financed the majority of the purchase in all of the renovation. And then once we finish the renovation, we will refinance it out into a 30 year fixed on A-D-S-C-R.

Dave:
So you financed your own golf simulator, just to be clear?

Henry:
Yeah, for business purposes, yes.

Dave:
Yes, of course.

Henry:
Purely

Dave:
Business.

Henry:
I will get no personal joy out of this.

Dave:
And how long are you expecting this renovation to take? Sounds pretty serious.

Henry:
By the time we’re done, it’ll be about five months.

Dave:
Yeah, it seems pretty reasonable. So as you said, this is the most relatable deal. Is this a deal you think an average real estate investor could find and pull

Henry:
Off? Absolutely. I think there are markets like this all over the country where you can buy houses for a reasonable price point and you can figure out a way to monetize them. I’m not saying it’s easy, I am saying it’s repeatable.

Dave:
Well, what’s hard about it? Tell me

Henry:
It looks easy because I just get to get on here and talk about the deal that I have. But what we don’t hear me talking about is how long or how much marketing I had to do in order to find an opportunity like this. There’s a level of consistently looking for opportunities and then when we find, when we’re able to capitalize on it. So it’s not like I just found this one property sitting out there nobody wanted and bought it. It took a lot of legwork on the front end to find this opportunity.

James:
I mean, I love this deal. When the rehab’s bigger than the purchase price, it typically means you’re making money. Yeah, you’re making some money on this thing,

Kathy:
You better be making some money.

James:
But you still have to control those costs and I think you have to be careful about buying the cheapest thing because the cost can’t explode. What do you think for somebody that was brand new, what’s their rehab number going to be?

Henry:
You could easily run this about 125 to 150. It’s not just controlling your costs, it’s also not over renovating, but I have this contractor doing four jobs for me right now, and so he is able to source materials all at the same time and I’m able to get a discounted rate because we’re doing so many jobs with this one contractor.

Dave:
But even you said 1 25, right? So Henry, just as a reminder, he said his renovation cost 90. So even if you went up to 1 25, which is like a 30, 35% increase over what Henry’s paying, you’re still into this deal for 180 and the ARV is 2 65, it’s still a good deal.

Henry:
It’s a stupid deal,

Dave:
Right? You

Kathy:
Could mess it up left.

Dave:
Right, exactly. So yes, there are inevitably efficiencies that come with doing the volume of deals. Henry’s Dough, having a business for several years, being great at building these relationships, that definitely helps. But even if you’re starting, there’s so much cushion in a deal like this that it gives you a lot of flexibility and allows for some of those inefficiencies that just exist for anyone when they’re first getting started.

Henry:
Absolutely.

Dave:
All right, well that is Henry’s deal. We are going to take a quick break, but when we come back we’re going to hear about Kathy’s new property and we’ll see if it’s as relatable as Henry’s deal that’s filled with spiders and has no floors. We’ll be right back. Welcome back to the BiggerPockets podcast. I’m here with Kathy Beckey, James Dard and Henry Washington talking about deals that we are all working on right now. We heard about Henry’s frightening deal with a lot of upside. Kathy, tell us about something you’re working on.

Kathy:
Well, this is a classic Kathy deal and it is quite opposite from Henry’s and probably James as well shouldn’t be any spiders in this one, but actually it is me helping my daughter get her first investment property because first of all, I don’t know about my youngest yet, but my oldest Karina listens to me and she bought a house instead of a car right out of college because she didn’t get a car. Her debt to income ratios were better. She was driving an old car, she didn’t need a new one. And that house helped her buy a house in southern California. And just recently the bank contacted her and said, we can give you an equity line. All you have to do is just sign. And she called me, she’s like, mom, what do I do? And I said, honey, you buy an investment property.
That’s what you do. And it’s a pretty substantial equity line that they’re giving her. So it’s scary. She’s very busy, busy professional. She’s got her own business and she lives in southern California. So to find what Henry just described in her neighborhood would be about a million dollars for that. So I wanted to show her how I’ve been investing and how we’ve been teaching people invest who don’t live in areas where it makes more sense to do the types of things that Henry’s doing and James is doing. So how do you have a full-time job, two young kids, try to take care of your life, your home, all the things, and try to buy an old house and fix it up? It’s really hard. So an alternative is to buy a new house that doesn’t need any work and that still cash flows and is in a growth area where you today can negotiate to have the rate bought down.
So Dallas has been hitting the news a lot as an area where prices are going down or there’s just a lot of inventory, but they’re not really talking about the outskirts. And if you go to North Dallas, it’s a very different story, very low inventory versus higher inventory, places like the McKinney area and even further north where you can still get tremendous deals and they still cashflow and it’s still in the path of progress and it’s all the things I love for buy and hold investing for busy professionals who just aren’t in a situation to buy a spider house, it’s just not going to work for them. So this deal is in an area in North Dallas, kind of near McKinney. There’s so much development coming in this area. The purchase price is $214,000 for brand new.

Henry:
That’s really good. Wow.

Kathy:
Crazy. The median price in that area is almost double that 395,000. So getting it well under median price, I love that it’s a three bedroom, two and a half bath. We’re negotiating the interest rate down, we’re trying to get it under 6% by negotiating with the builder and the rent looks to be around $1,825. So again, not the numbers you’re going to see with Henry, but also that’s really hard to do when you live in Southern California. You’re not going to find
A $50,000 house and be able to put a hundred thousand into it and make it work. So again, this particular area has days on market is 65 months of inventory 3.9, so kind of normalizing not what you hear in the news, which is a flood of inventory in Dallas. You have to know that for the case Siller index and a lot of these areas where they mentioned cities, they’re not always talking about the metro area. And the metro area is very different than the city itself. Cities operate very differently than suburbs. So you’ve just got to know your suburb really well and know where the growth is headed because if we want something that cash flows, if we want something more affordable, so do businesses. Businesses want to get out of expensive areas and into more affordable areas where they can get the land for cheaper, where they can pay their employees a little bit less than they might have to in a city. So you’ve got to always be looking at where are businesses moving and where is housing needed as a result of that. So I’m super proud of her. She’s going to be able to pull this deal off. It’s her first investment and I like it so much. I’m going to get one too.

Dave:
Oh wow. Just double dipping.

James:
I love that it, you know what I love about this deal right now though, you’re catching the builders in the middle
Right now, it’s a little bit harder to sell inventory, so they’re now selling to you at a discount. You’re able to negotiate the rate buy down, which is a benefit to you. Essentially you’re getting the property for cheaper by getting that rate buy down. And also we have tariffs coming that supposedly is going to raise construction costs 10 to 15% and you’re locking in on today’s bill costs where the builder is also working with you to get the inventory off. And that’s what we’re always chasing as investors is what’s in the middle no man’s land. And that’s how you can kind of crush that deal when you can get that rate negotiated down and you’re buying below replacement cost because if construction cost is up 10, 15% in 12 months, you’re buying below replacement cost. And that’s what I really do love about that deal. It’s the right price is the right affordability and it should naturally go up in value just by the bill cost alone.

Henry:
There’s a couple of things I love about this deal. First of all, brand new construction home in an area of the country that is going to continue to grow. There’s a lot of landmass in Texas. They’re not just going to stop growing. So 214,000 for a purchase price for a brand new home.

Speaker 5:
Yeah,

Henry:
It’s crazy. The home’s not going to go down in value even in the short term if it does over the long term. This property is going to appreciate, and I know there’s people looking at listening to this and looking at the numbers and going, oh, 214,000, only 1825 in rent. But you have to consider that this property is brand new construction, which means you are not going to have the maintenance expenses and the capital expenses maybe that I am going to have with my property. That’s a much older property. And so that is going to help you with the cashflow in the short term and in the long term you’re going to have equity and appreciation plus the tax benefits on a property like this, this is almost a no-brainer. If at 214,000, 1825 rent in a market, that’s going to appreciate sometimes where you find new construction at these price points, you’re probably not going to get the growth or the appreciation over time. So I think being able to buy something like this at that price point near a metro area like Dallas is pretty amazing.

Kathy:
And then like you said, just not to get nickel and dime. It’s like buying a new car versus an old car. You’re going to get a better deal on the old car, but you might have to more fix it costs, right? Than a new car hopefully

Dave:
And lower vacancy. I think when you go into these communities where it’s more family oriented, you might have longer term tenants too mean this makes a lot of sense to me. Kathy, this might be a more relatable deal. It was. I think for an average investor especially who lives in a high price market, this is a good option. Henry, your deal has a lot of juice in it to borrow James’ term, but it’s a little bit more work and it’s going to be a little bit harder to do. So I think you might be competing here on relatability, Kathy.

Kathy:
Alright.

Dave:
Alright. Well thank you for sharing with us Kathy. Sounds like a really good deal. Good example of something that you can buy anywhere in the country if you have the capital to afford something like that. Before we move on, I wanted to remind the whole BiggerPockets community that the BiggerPockets conference known as BP Con is back and we are heading to Las Vegas this year for our sixth annual conference. I know all three of you’ll be there. I will be there of course as well. Henry, tell me what are you looking forward to this year?

Henry:
Vegas is probably one of the best food cities in America and I’m a fat kid, so I’m excited to go eat food for sure. I’m excited to give some money away, make some donations to the casinos there and

Dave:
They are struggling.

Henry:
Yes, absolutely. And I’m excited to hang out with all of my friends that I don’t get to see as often, so I miss you guys.

Dave:
Absolutely. It’s going to be a great time. James, what are you looking forward to?

James:
I got to echo Henry. It’s Vegas. It’s always going to be a good time. But one of my favorite things about BP Con is just hanging out in the hallways and talking to people When you just get to talk and talk and you get to find out what people are doing or what they’re struggling with. Every time I leave BP Con, I’m excited to go do more things.

Dave:
That conference high man, it’s a real thing when you get home, you just buzzing. Kathy, what are you looking forward to? Well, of course your keynote Dave.

Kathy:
Can’t wait.

Dave:
Wow. Thank you. Putting the pressure on.

Kathy:
Yeah. Yeah, it’s a little bit of pressure. No, it’s been so good these past years. I’m looking forward to that again. And of course Vegas is always fun, but it’s really fun with 2000 of your best friends, we take over a whole casino. I mean BP style all the way. One thing, if people haven’t been to BP Con, you need to know that they go all out and all out on the education, the networking, but also the fun. So I can’t wait to see what’s in store.

Dave:
I know we never know what the parties are going to be, but they’re always great.
Well, thank you all for, I mean, it’s going to be a great time. I’m really looking forward to it. And if you all want to join the four of us and tons of other real estate investors experienced aspiring alike, you can go to biggerpockets.com/conference and get all the details there and book your room, get your ticket, and we’ll hope to see you in Vegas. All right, we’re going to take a quick break, but we’ll be right back. Welcome back to the BiggerPockets podcast. I’m here with James Dard, Kathy Feki, Henry Washington, talking about deals everyone is working on right now. We’ve heard about Henry Spider House, Kathy’s new construction deal outside of Dallas. James, I’m guessing yours is probably worth more than both of theirs combined. What are we talking about here?

James:
Yeah, my earnest money was double Henry’s purchase price on this

Dave:
One. He’s like, that’s pretty cute. 55 grand, two 14, that’s

James:
Great. No, and it doesn’t matter the size of the deal. You got to play with the cards, you get dealt right and we’re in Seattle, it’s expensive. I would love to buy myself a 55,000 lake house and Henry, I did just get a wakeboard boat, so maybe we head out that way. My deal though, for the market we’re in, we have to get pretty creative to come up with cashflow and build out your rental portfolio. Things are expensive and the reason I love my deal is because they only make so much land and I’m getting the land for almost free.

Henry:
I love it

James:
On this one and how we’re setting up, I love that. What we have is I found a property which is the equivalent to 55,000 in Arkansas. I found a two bedroom, one bath property in the central district of Seattle. So this is an expensive neighborhood. It’s constantly growing on a 4,000 square foot lot and we paid 600 grand for this property and 600 grand in Seattle is cheap. So the reason I love this deal is there’s potential in the backyard. It sits on a two-sided street, there’s access on the back and the front house is on the front of the lot. We can renovate that house and put in about 120,000, 125,000, and that house will able to be sold for about 900,000. In addition to this property is zoned LR three low rise residential to where we can build a row house in the back
And I can build a 2100 to 2200 square foot house in the backyard and subdivided off and sell that property for about $1.2 million. Wow. So the plan on this is we’re going to renovate the house, put a hundred twenty five hundred thirty 5,000 in, we’re going to sell it for 899,000, which is then going to give us the back lot on that property. There’s going to be about $35,000 in profit after we flip the house. So we’re going to get our backyard for $35,000 cash to us, and we’re able to build that house out at a cost of about 700 to 720,000 to build a house that’s worth 1.2 million. That property then has now created over 350 to $400,000 in equity, but it’s not going to pay for itself. I’m going to have to write a check to either pay for it or leave some money in. And so that’s why I love this deal.
It takes a long time to build these things out so I can start collecting rent, start putting renters in, and I can 10 31 exchange this in one year. And so I’m going to flip off the front house, get the lot for essentially free in the back, build a house for 720,000, sell it for 1.2, create $300 in equity and profit, and then I’m going to take that 300,000. I’m going to go buy a fourplex with no money out of my own pocket. And so the reason I do love this deal is you have to look at creative ways in expensive markets, whether you’re in la, Chicago, Miami, New York, the numbers don’t pencil if you want to buy a rental.
And so for us, it’s a lot of work. This is going to take us about 12 to 15 months, but in two years I’m going to be able to get into a fourplex with no money out of my own pocket. And that’s how you start creating the wealth. And that’s how we built out our whole portfolio. Again, I would much rather buy a deal like Henry, if I had those in my backyard, I would buy ’em. But in my neighborhood I got to cut off my backyard to make any kind of money on the thing.

Kathy:
This is how you do it in the high price market in California, you can do things like that with ADUs. There’s such a push. The California legislation is all about building these ADUs in the back and increasing value. And I love what you said. You can have income coming in while you’re working through the permitting process and so forth. You still can rent the main house and be able to build and improve the back part though. Love it. We’re always looking for deals like this.

Henry:
So you’re still able to sell these properties one for nine 50 and another one for what, 1.2 even though they don’t have the yards anymore.

James:
And so we’ve deducted that value down. So 8 99, if I build it in the back, if I actually don’t build anything in the back, the property could be worth up to 9 99. But that comes down to the plan. So as I was permitting and start working on permitting that back unit, you want to make sure that you’re not putting too many negative factors on that house. So things that we planned out is as we did our design, we made sure that this house still had a little bit of a backyard as a front yard, but we also got parking on it. And that was key to make the numbers work. If we couldn’t have got parking, that house could go down to about $799,000 in value. And so these deals, they get a little complex and you have to look at all the comps and what the impacts are and they take a little bit of time to work through.
And that’s why it’s really important to work with the right professionals that can give you the right values. Because if we don’t have that parking stall, instead of making money on it, I’m actually going to be paying a hundred thousand to 150,000 for the deal. And so it’s all about that plan and how you lay it out. And just because you can build it in the back doesn’t mean you should either. And so you want to work with an architect, an engineer, a surveyor, and to figure out exactly what you can do. This is not guessing.

Speaker 5:
This

James:
Is all done in our feasibility when we bought the property. And the reason I Lou love this deal is for some reason, if bill costs shoot up 30% because of tariffs in the next six to nine months and my numbers change, I can still pivot my deal and sell the house for in the nine hundreds, high nine hundreds and still make a profit and just cancel it. And the only risk I’m taking is the waste of plans.

Dave:
James, I’m curious, how many different ways did you look at making this deal work before you settled on this particular strategy?

James:
I looked at this deal five or six times. I said no the first three times and then I just kept coming back to it because it was affordable. And I’m going, okay, I love a no man’s land deal when everyone doesn’t want it. It’s like, well, how can we make this work? And so I probably looked at this six different times over a 45 day period. And even when I locked it up, I was like, man, this might not work. And then finally after talking to my surveyor, an architect, we came up with the right plan.

Dave:
Yeah, I mean I think that shows getting creative in not just expensive markets, but just in the kind of housing market where we’re in, where there’s not that much inventory. This is something that a lot of people probably had a chance to buy, but because you were disciplined about it and got creative with it, you were the one who figured out through that hard work that you did, how to make this, what other people couldn’t make pencil into a really profitable deal for yourself.

James:
Yeah, it’s all about the plan that you’re putting on things. And if you look at a straight over tackle, a lot of times it won’t pencil because looking at it straight over tackle, so they’re rushing in on that deal. I like the ones where it doesn’t make sense straight over tackle and you got to get a little creative and that’s how you can create big pops. Even on this deal, I might keep it as a rental, but I still might tweak it at the end because I can 10 31 that front house and for some reason a bill costs go up. I know I can sell that lot in the back for 15 to 20% of value. So that tells me that lot’s worth 150 to 200 grand and I can combine it and then 10 31 it out that way too. And so there’s multiple different options in so where I’m not going to get stuck having to build the house if I don’t want to.

Dave:
Awesome. Well this sounds like another great deal, James. Thank you so much. And I know the prices may seem out there, but a lot of the lessons that James is talking about on how to approach this kind of challenge, I think is applicable to really any market. So thanks so much for bringing it to us. Alright, well thank you all so much for bringing these deals since we tend to always just make these things competitive for absolutely no reason. I think we often vote for one deal that we would do. You can’t vote for yourself. So James, what’s your vote?

James:
Well, even if I could vote for myself, I’d pick Henry’s deal all day long. I love a massive fixer cheap high equity growth straight over tackle Reno. I’m jealous. That is my kind of deal.

Dave:
I like it. All right, Kathy, what’s yours?

Kathy:
So I would pick James because I love opportunities like that where you have multiple exits, 600,000 might sound high to some people, but I know that is a good deal and then all the options that you could do with it. And then I would just want to borrow James and his team

Dave:
For

Kathy:
Just a year or so and I’ll take that deal.

Dave:
Yes. Okay. So you’re not buying just the property, you’re buying the whole I’m buying. I like that. All right, Henry, what’s yours?

Henry:
Well, even though Kathy’s hating on my deal, I would buy hers.

Dave:
Okay. Oh, I have to be the tiebreaker now, but tell us why. Henry.

Henry:
I just think those numbers are pretty amazing for a new construction. And we have to remember that real estate is a long-term wealth game. And the more that I am into this space and the more that I am looking at my rental portfolio, I’m most excited. When I look at the newer properties that I’ve bought in the past couple of years, I’ve bought a few new construction rental properties. Those are the legacy properties. Those are the ones that you’re going to be able to hand off to your kids and they’ll still be in pretty decent shape. Versus if I bought a 50-year-old property and then I’m handing that one off to my kids, that’s a lot of problems that could come with those right

Dave:
Here. You deal with

Henry:
Those, right? So the idea of being able to buy something brand new at that low of a price point and knowing that appreciation is going to go up, rents are going to go up over time. We didn’t talk about that with Kathy’s deal, but that’s another upside to hers. It’s 1850 a month now. But if you’re going to get appreciation over time and rent growth over time, that gap of wealth just continues to get bigger. I think that’s a great option for people who probably have 15 to 20% sitting on the sidelines that they’d be willing to throw in a deal.

Dave:
Well, I get to be the tiebreaker now. This is fun. You all voted for each other. Oh boy. Normally I think I would actually pick your deal, Kathy. Those are the type of more passive long-term deals I like. But Henry got me a golf simulator throwing a golf simulator on any deal. I’m taking it, so I’m picking Henry. Alright, well thank you guys so much. This was a lot of fun. Henry, James, Kathy, we appreciate you being here and hopefully we’ll have you guys back on again soon. And thank you all so much for listening to this episode of the BiggerPockets Podcast. We’ll see you next time.