TBT: Ask Marco - Are Low Cost Properties a Good Strategy for Cash Flow?

Passive Real Estate Investing

Real Estate Investing with Marco Santarelli, Investor and Entrepreneur.

Education, Business, Investing, Entrepreneurship, How To, Business:investing

4.6 • 968 Ratings

🗓️ 2 January 2026

⏱️ 12 minutes

🔗️ Recording | iTunes | RSS

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Summary

Click Here for the Show Notes In today’s episode, Marco answers a detailed question from Dave, who’s working to replace his day-job income with consistent rental cash flow. Dave wants to know whether focusing on lower-cost properties—typically under $100,000 and producing $250–$350 per month in true net cash flow—is the smartest way to scale both income and number of properties. Marco breaks down the difference between cheap and low-cost properties, explains why cash-flow-centric strategies differ from appreciation-focused investing, and walks through real examples from markets like Memphis, Birmingham, Dayton, and Northwest Indiana. He also discusses neighborhood classes, realistic return expectations, and why comparing deals side by side matters more than price alone. This episode offers clear, practical insight for investors focused on maximizing cash flow and building a portfolio designed for income and long-term freedom. If you’re ready to take the next step, listen in, subscribe to the podcast, and reach out to Marco’s team to learn how you can start building a cash-flow-focused rental portfolio today. -------------------------------- Throwback Thursday Episode (The episode originally took place in the year 2020) This episode is part of our Throwback Series and may include references to older content such as web classes, events, promotions, or links that are no longer active or available. While the conversation and insights still hold value, please note that some information may be outdated. -------------------------------- If you missed our last episode, be sure to listen to TBT: Ask Marco - Do Low Cost Houses Make Good First Investments? Download your FREE copy of: The Ultimate Guide to Passive Real Estate Investing. See our available Turnkey Cash-Flow Rental Properties. Our team of Investment Counselors has much more inventory available than what you see on our website. Contact us today for more deals.

Transcript

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0:00.0	Welcome to passive real estate investing, the show where busy people like you learn how to build
0:05.7	substantial passive income while creating wealth for the long term. And now, here's your host, Marco
0:11.7	Santorelli. Hello, my friends. Welcome back to passive real estate investing, where we dive into the
0:18.0	world of real estate investing, among other related topics, to help you with your real
0:21.8	estate investing journey. Today, we're doing something a little different. We're going to take a
0:27.4	trip down memory lane and showcase an important episode from the past on what we call our
0:32.3	throwback Thursday episode. Now, whether you've been with us since the beginning, which goes back to 2015, or you're tuning in for the first time, this episode. Now, whether you've been with us since the beginning, which goes back to 2015,
0:38.8	or you're tuning in for the first time, this episode is a must listen. We are revisiting one of our
0:45.5	more popular episodes from the past. And believe me, what we discussed back then, whether it's
0:51.1	six months ago or six years ago, is just as relevant today. So sit back,
0:56.6	relax, and let's rewind the clock for this great episode. Enjoy. So today's question comes from Dave.
1:03.8	Dave says fantastic podcast, Marco, and thank you for all the great information that you share.
1:08.1	Dave, you're very welcome. Given the fact that I am trying to
1:11.0	replace my everyday job income with positive cash flow, I am trying to maximize the amount of
1:16.6	cash flow I can get on each property while also maximizing the amount of properties that I can
1:21.9	purchase. As I see it, this leads me to think that I should focus on lower cost properties. For
1:27.3	example, under $90,000
1:28.9	with $250 to $350 per month in net cash flow. First off, do you think this is a sound plan? If not,
1:37.7	what holes or pitfalls do you see and what do you think would be a better strategy? If it is a
1:42.8	good idea, which markets do you recommend
1:45.2	investing in with your team to meet this criteria? Thanks again. Okay, well, Dave, very good question.
1:52.3	I'm going to summarize this question to basically this. Are low-cost properties a good strategy
	...

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