Finding The Rental "Sweet Spot" with J.R. Spence (Ep 43)
Rental Income Podcast With Dan Lane
Rental Income Podcast
4.8 • 836 Ratings
🗓️ 1 September 2015
⏱️ 17 minutes
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Summary
Transcript
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| 0:00.0 | Inspiring interviews with today's top landlords. |
| 0:04.7 | This is the Rental Income Podcast. |
| 0:07.6 | And now, Dan Lane. |
| 0:09.8 | If you're looking for a good real estate book to read, I made a list of all the books we've talked about on the show. |
| 0:15.5 | You can check it out at Rental Incomepodcast.com slash books. |
| 0:21.2 | Today on the show, we're going to be talking about the sweet spot in investing in rental |
| 0:25.7 | properties. |
| 0:27.0 | Now, generally on the lower end properties, you are going to make a lot more money. |
| 0:30.7 | These properties are generally pretty cheap and the rents are pretty high. |
| 0:35.2 | So there's a lot of profit margin there. |
| 0:37.2 | But the downside is these tenants are |
| 0:39.9 | generally lower quality tenants. So you're going to have more issues. You're probably going to have |
| 0:44.4 | more evictions. These properties are older. So you're going to have more repairs to do. There's |
| 0:49.0 | generally just a lot more work with the lower end properties. But there's a lot more money |
| 0:53.6 | there. So for a lot of people, |
| 0:55.1 | that is worth it. On the other end of the spectrum, on the higher end properties, there's going to be |
| 1:00.6 | a lot less work to do. These tenants are generally more stable. These properties are newer, |
| 1:06.4 | so there's less repairs to do. There's less handholding. |
| 1:13.7 | But the downside is these properties are more expensive. |
| 1:19.7 | The rents are higher, but because the properties are more expensive, there's less profit margin there. |
| 1:22.0 | So you're going to make a lot less money. |
| 1:24.6 | And then you got the sweet spot right in the middle. |
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