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Real Estate Rookie

2 Biggest Hurdles to Your First Rental (& How to Get Past Them) (Rookie Reply)

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.81.7K Ratings

🗓️ 25 April 2025

⏱️ 34 minutes

🧾️ Download transcript

Summary

Finding the right rental property isn’t easy. It needs to fit your budget and buy box, and if you’re house hacking, you’ll want to buy in a neighborhood you’re comfortable living in. These are just a few of many roadblocks rookies face, but we’re going to show you how to thread the needle in today’s episode!   Welcome to another Rookie Reply! We’re back with more questions from the BiggerPockets Forums and the Real Estate Rookie YouTube channel, and first up, we’ll hear from an investor who is struggling to find a property that checks all the right boxes. Should they settle for what they can afford or save up for something better? Should they shop around for different types of financing? Stay tuned to find out!   We’ll also hear from an investor who wants to use the home equity from their first rental property to help buy their next one. Should they get a HELOC (home equity line of credit), use a cash-out refinance, or sell their property? We’ll weigh the pros and cons and help them make the smartest move. Finally, if you own rentals for long enough, you’re bound to have friction with neighbors. We’ll show you how to defuse tension and build rapport! Looking to invest? Need answers? Ask your question here! In This Episode We Cover The biggest hurdles new investors face when buying their first rental property Settling for the property you can afford versus saving for something better Narrowing down the right neighborhood for your first house hack Three ways to tap into the equity you’ve built up in your property How to find the right financing for your first real estate deal The best ways to respond to neighbor complaints (that build rapport) And So Much More! Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-553 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected].  Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0

If you're struggling with how to decipher all of your financing options, or maybe you're just

0:05.2

wondering what is the best kind of market to invest in, this episode is for you.

0:10.3

Today we're going to tackle the biggest roadblocks rookie investors face, from accessing capital

0:15.9

to making smart neighborhood decisions that will set you up for long-term success.

0:21.1

Now, whether you're trying to figure out if you should house hack in a C-class neighborhood

0:24.6

or wait to save up for something more premium, we've got you covered with some advice in today's

0:28.7

episode. Plus, we're breaking down exactly how HELOC loans work so you can feel confident

0:33.4

leveraging that equity for your next investment. Now, what I love about today's questions is that

0:38.0

they're coming from people at different stages, some with equity already built up and others

0:42.4

trying to make that crucial first investment decision. So no matter where you are in your journey,

0:47.2

today's episode has something valuable just for you.

0:55.7

I'm Ashley Care.

0:57.1

And I'm Tony J. Robinson.

0:59.8

And welcome to the real estate rookie podcast. Okay, let's start off with our first question today.

1:03.0

This is from the Bigger Pockets forums.

1:04.8

It is, should I start off with a house hack in a D or C class neighborhood?

1:10.3

Or should I save more and go with a B class neighborhood

1:13.8

right out of the gate. Any advice would be appreciated and please explain why. Okay. So first Tony,

1:21.0

we should probably like break down what actually a class neighborhood means between A, B, C, D, maybe an E, is there an E class

1:31.5

neighborhood? So when you think about an A class neighborhood, those are going to be like your

1:35.8

luxury rentals, right? Those are going to be the ones that have like the nice flooring,

1:39.6

the nice countertops, the premium fixtures, you know, maybe all the crazy amenities, like that, that's

...

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