The Brutal Truth About Rental Property Cash Flow
Wealthy Way
Ryan Pineda
4.9 • 2.2K Ratings
🗓️ 15 June 2025
⏱️ 12 minutes
🧾️ Download transcript
Summary
Most rental markets don’t cash flow anymore, and if you're still buying in the big-name cities thinking they will, you're setting yourself up for disappointment. Here’s the data-driven way to find real cash flow and what markets actually work in 2025.
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About Ryan Pineda:
Ryan Pineda has been in the real estate industry since 2010 and has invested in over $100,000,000 of real estate. He has completed over 700 flips and wholesales, and he owns over 650 rental units. As an entrepreneur, he has founded seven different businesses that have generated 7-8 figures of revenue.
Ryan has amassed over 2 million followers on social media and has generated over 1 billion views online. Starting as a minor league baseball player making less than $2,000 a month, Ryan is now worth over $100 million. He shares his experiences in building wealth and believes that anyone can change their life with real estate investing.
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Transcript
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| 0:00.0 | Where are you buying properties that cash flow? Because this is like the big problem today. |
| 0:05.6 | You know, a lot of people have been told, hey, I should buy rental properties. I should, you know, get cash flow and all this stuff. And I'm over here like, guys, most markets do not cash flow today. Like, if that's your plan for cash flow, get a better plan. And it's not to say like rentals are bad. It's just like for |
| 0:23.0 | cash flow, it's really difficult right now. So like, how are you finding any cash flow? Well, |
| 0:28.2 | you're right. Most markets are not cash flow markets. They're bad for cash flow. You'll lose. |
| 0:33.3 | Yeah, especially the ones that are on the top list, like the Austin's, Portland's, they're just measuring property value growth, but not value for cash flow ability. |
| 0:42.5 | So if your goal is cash flow, the market has the cash flow. |
| 0:45.7 | And so the way that I teach my students how to do this is if we're looking at a single family home |
| 0:50.9 | and we want to know, will that property cash flow, the best analog for that |
| 0:55.2 | just quick metric is rent to price ratio. Right. So rent divided by price. If we could somehow |
| 1:00.7 | figure that out for the market as a whole and it was above 1%, that means the average for that |
| 1:05.7 | market would be a about break even property. So just so everyone's aware, rent to price ratio 1%, that would be, |
| 1:14.2 | you know, a 200,000 our property would rent for $2,000 a month, right? Yeah. Yeah. And the challenge with |
| 1:21.3 | these bigger markets, even Vegas, like where we're at is if home prices go up linearly, |
| 1:27.3 | rent doesn't track with them. It tails off. |
| 1:30.1 | Because if you have a 1% property, which is probably not going to cash flow, it's going to be |
| 1:35.8 | break even, especially with today's rates. If it's a $500,000 house, that's a $5,000 a month. Rent, |
| 1:43.6 | who's going to pay for that for a rent property? Not very many people. Yeah, here in Vegas, a $5,000 a month rent, who's going to pay for that for a rent property? Not very |
| 1:46.2 | many people. Yeah, here in Vegas, a $500,000 are renting for about $2,500. Right. Yeah. So you're just |
| 1:51.7 | they would, they'd be able to buy the house for before that. So, so it tails up, but there are some |
| 1:58.6 | markets where you could buy a $90,000 house and rent it for $1,500 a month. |
| 2:03.5 | And so, and now that's a single family home. And, you know, you might say, well, those properties are probably holes in the wall and there's rats everywhere. They're nice properties. They're in great shape. They're turnkey properties. And so I'm seeing for some markets, you'll find the rent to price ratio at the |
| 2:20.0 | market level, say median median three bed property value is 1.2, 1.3%. Yep. |
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