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BiggerPockets Money Podcast

258: Finance Friday: Are “High Cash Flow” Rentals Still Realistic in 2022?

BiggerPockets Money Podcast

BiggerPockets

Education, Investing, Business

4.53K Ratings

🗓️ 17 December 2021

⏱️ 75 minutes

🧾️ Download transcript

Summary

A common debate in real estate is cash flow vs. appreciation. While some investors rely on their rental property income to reach FI, others argue that appreciation will provide them the equity gain to truly build wealth. You’ll hear this discussion in-depth on today’s episode as guest Jackeline walks Mindy and Scott through her $20,000 rental property in Northern Illinois.  Jackeline is already doing well in other aspects of her life. She’s got a high net worth, with fully-funded retirement accounts and a big cash cushion, but she wants to reach FI by 45 so she has the option to retire. One of the best ways to do that? Cash flowing rentals! The only problem is that Jackeline is buying these rentals in a less-than-optimal area. With rentals in C or D-class neighborhoods, you can count on more tenant problems, repairs, and headaches. But, these downsides come with the big upside of higher cash flow. Scott and Mindy both help Jackeline balance the scales on what is most important to her: buying in an appreciating market but using more of her cash or continuing to purchase low-cost, riskier rental properties.  In This Episode We Cover Building multiple financial safety nets between retirement accounts, cash, and cash flow  Buying rentals in C to D-class neighborhoods and the pros/cons associated with them Properly screening tenants to minimize turnover and maximize ROI Experimenting with different rental property classes to find a strategy that works for you Finding your real estate tribe and networking with others who can help you grow 1031-ing a property to avoid a tax penalty and grow your real estate portfolio And So Much More! Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Hey there!

0:01.3

As the bigger pockets podcast network grows, we're always on the lookout for talented people

0:05.5

who think they have what it takes to co-host a show.

0:08.2

Is that you?

0:09.2

Do you want to be just like me?

0:11.1

Well, you can make a submission to our system at biggerpockets.com slash talent so we

0:16.6

can get to know you.

0:18.2

That's biggerpockets.com slash talent.

0:20.6

You'll see a few questions and a place to submit a video reel.

0:23.8

Again, that's biggerpockets.com slash talent.

0:27.4

If you'd like to lend your voice to the growing biggerpockets podcast network.

0:33.3

Welcome to the biggerpockets money podcast show number 258, Finance Friday edition, where

0:38.1

we talk to Jacqueline about real estate investing in the right location.

0:42.6

I don't necessarily want to retire early, but I just want to be comfortable enough that

0:48.4

if that's something that I wanted to do, that I could do it.

0:51.8

I mean, I don't necessarily don't ever want to work again.

0:54.6

I just don't want to feel like I'm tied to a job.

0:58.2

I mean, I've been working since I was 17 full time and I just want to feel like I could

1:07.1

take a break.

1:08.1

I don't need that nine to five.

1:10.8

Hello, hello, hello.

1:11.8

My name is Mindy Jensen.

...

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