#346: How Boring, 40%-Down Rental Properties Can Still Make You Rich
Real Estate Investing with Coach Carson
Chad Carson
4.9 • 613 Ratings
🗓️ 3 June 2024
⏱️ 21 minutes
🧾️ Download transcript
Summary
⭐ Join Rental Property Mastery, my community of rental investors on their way to financial freedom:
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🎙️ Episode #346 – The person who does boring passive investments four or five times during that decade is going to do, on average, better than the person who's sort of side hustling an active investment. Coach and Erion discuss how traditional rentals, despite larger down payments, can build wealth through capital appreciation and strategic financing.
▶️ Next Video:
How to Make Rentals Cash Flow With 8% Mortgages
📄 Show Notes:
https://www.coachcarson.com/40downrentals/
🎬 Timestamps:
00:00 - Discussion on Real Estate Investing Strategies
01:14 - Impact of Interest Rates
02:29 - Benefits of Boring Rental Strategies
04:07 - Understanding Capital Appreciation and Cash Flow
06:24 - Leverage in Real Estate Investments
08:43 - Evaluating Assets and Financing
09:38 - Analyzing Above the Line and Below the Line Issues
13:08 - Passive vs. Active Real Estate Investing Strategies
14:56 - Time Constraints and Investing for Financial Freedom
18:00 - Long-Term Wealth Building Strategies
18:21 - Optionality and Flexibility Through Boring Investments
20:01 - How to Make Rentals Cash Flow With 8% Mortgages
🔗 Connect with Erion:
• Twitter: https://x.com/investarchitect
• Website: https://www.signaturehouston.com/
• LinkedIn: https://www.linkedin.com/in/erionshehaj/
--------------------------
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Transcript
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| 0:00.0 | I was recently talking to a real estate investor who also works a full-time job, and he was interested in doing the active, exciting type of real estate investing, |
| 0:07.8 | like buying low-priced, fixer-upper rentals, or buying short-term rentals with a lot of cash flow. |
| 0:13.6 | And he had a good reason. He wanted to reach his goals, like achieving financial freedom faster, like in seven or ten years. |
| 0:20.2 | But I suggested a different path for him, |
| 0:23.0 | buying boring rentals, |
| 0:25.1 | which means owning pretty properties |
| 0:26.9 | in nice neighborhoods with just okay rent to price ratios |
| 0:30.7 | and also putting very large down payments, |
| 0:33.2 | sometimes 40% down in order to make a positive cash flow. |
| 0:37.4 | Long story short, this investor wasn't that |
| 0:39.7 | excited about my suggestion. Maybe you aren't either, but you should be. Because for many of you, |
| 0:45.2 | especially if you're working a full-time job and you have good savings, this could be the best |
| 0:49.7 | strategy to help you achieve your goals. And in the rest of this episode, I have a conversation |
| 0:54.6 | with expert real estate strategist, Aereone Shihai, so that we can explain this boring |
| 0:59.1 | rental strategy and how it can make you rich. Welcome to the podcast Real Estate Investing with Coach Carson. I'm your host, Chad Carson. You can also call me Coach Carson, and this is a show to help you get out of the financial grind so you can spend your time doing more of what matters. Now let's get to my interview with Arian Shi Hai. Is there anything that comes to mind first for you that we can talk about these boring rental strategies of whether you can actually get rich with them as well? |
| 1:28.8 | No, yeah, that's a great question because I get a lot of the same questions from investors. |
| 1:32.6 | They're looking for excitement and things like that. |
| 1:35.2 | But I want to sort of start where this idea of the 40% or 30% down came from, and it basically |
| 1:41.7 | originated from the fact that interest rates increased, |
| 1:44.5 | right? Like nobody was talking about all these things are boring when interest rates were |
| 1:48.2 | three and four percent. Like everybody was perfectly happy, right, to make those investments |
| 1:52.5 | then. But now that interest rates have increased, what that has caused is that people now are |
... |
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