Can You Make Money With Cheap Rentals? With Sabhya Katia (Ep 518)

Rental Income Podcast With Dan Lane

Rental Income Podcast

Business, Investing, Entrepreneurship

4.9 • 805 Ratings

🗓️ 22 April 2025

⏱️ 22 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Sabhya started buying good properties in good neighborhoods. Everything was working great. The properties were making money, and the properties were easy to manage.

Sabhya saw he could buy cheaper properties in a less-than-great area and earn better returns.

After owning the properties, he found that the cheaper properties had higher expenses than he estimated, and he wasn't making the money he hoped.

On this episode, we discuss some of Sabhya's issues and how to be successful with cheaper rental properties.

https://rentalincomepodcast.com/episode518

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Transcript

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0:00.0	Inspiring interviews with today's top landlords.
0:04.7	This is the rental income podcast.
0:07.7	And now, Dan Lay.
0:09.6	Sabia, I'm sure you've learned a lot since you've been buying rental properties,
0:13.2	but what would you say is the number one most important thing that you've learned?
0:18.3	Yeah, Dan, through my investing journey, I've realized that while
0:23.1	numbers might seem good on certain properties, even above 1% rule in certain lower income
0:30.0	neighborhoods, the actual truth is while operating, for me it has been that a little bit higher income neighborhood might
0:41.2	yield better actual return because of low maintenance costs and low vacancies.
0:47.9	And that has been a life-changing, almost strategy-changing journey for me that I've learned through my three years
0:54.9	investing in real estate.
0:56.0	Sabia started out buying good properties and good neighborhoods.
0:59.4	Everything was going great.
1:00.6	The properties were pretty easy to manage.
1:03.2	He was getting a pretty good return, but he saw that if he bought cheaper properties in a
1:08.4	not-so-great area, he would get a much higher return. So he found a
1:12.7	couple of deals, ran the numbers, thought he had a home run, but the deals didn't quite
1:18.0	work out as well as he hoped. He had a lot of problems. He had a lot of expenses he wasn't
1:22.9	counting on. And overall, it really just didn't work out for him. So on the show today, we're going to figure out
1:29.1	what happened. See if maybe there's something that he could have done differently. A lot of people
1:33.4	are very successful with lower end properties. So we'll get to the bottom of what happened
1:39.0	and see what you could do to be successful with cheaper properties. Joining us on the show today from Chicago is Sabia Katia.
	...

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