The Ultimate Underrated Rental Property of 2025 (for Small Investors)

BiggerPockets Real Estate Podcast

BiggerPockets

Education, Business, Investing

4.8 • 16.5K Ratings

🗓️ 26 March 2025

⏱️ 37 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

What’s the best rental property for the average investor? It’s not a single-family rental, it’s not a large apartment building, it’s not even a duplex or a triplex—it’s a “sweet spot” small multifamily. These investment properties, ranging from five to 25 units, make more money, are easier to manage, and help you scale faster to achieve financial freedom. Even large multifamily investing experts like Brian Burke are ditching the huge apartment complexes to buy these. But what makes these small multifamily investment properties so much better than their bigger and smaller counterparts? We’re discussing the massive investing opportunities in 2025 for these properties with Brian today and how new investors and those looking for a manageable portfolio can leverage these properties to reach financial freedom. These types of properties are still experiencing low prices with limited competition, which means that if you know about them, you already have an advantage. How long do we have until multifamily prices rebound and these investments become out of reach for regular investors? How do you analyze a small multifamily property to ensure it makes you monthly passive income? Brian shares his wisdom and gives an exact timeline for when it may be too late to buy. In This Episode We Cover: The rental property “sweet spot” for more income and fewer headaches Why it’s easier to own multifamily than single-family homes The multifamily real estate crash and why prices are LOW right now How to analyze small multifamily before you buy and which expenses most new investors forget What makes a “good” small multifamily real estate deal in 2025 And So Much More! Links from the Show Join BiggerPockets for FREE Let Us Know What You Thought of the Show! Ask Your Question on the BiggerPockets Forums BiggerPockets YouTube Apply to Be a BiggerPockets Podcast Guest! Try REsimpli, The Only All-In-One Real Estate Investor CRM Software That Helps You Manage Data, Marketing, Sales, and Operations Grab Brian’s Book, “The Hands-Off Investor” Sign Up for the BiggerPockets Real Estate Newsletter Property Manager Finder How to Buy a Small Multifamily Property (A Step-by-Step Case Study for Newbies!) Connect with Brian Connect with Dave (00:00) Intro (01:54) The Rental Property “Sweet Spot” (04:31) Management is EASIER! (07:36) It’s On SALE! (10:53) How Long Will Opportunity Last? (13:38) “Good” Deals in 2025 (17:48) How to Analyze Small Multifamily (24:03) Can Small Investors Do This? Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-1100 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0	Hey everyone, I'm Dave Meyer, and this is the Bigger Pockets Real Estate podcast, where we teach you how to achieve
0:11.2	financial freedom through real estate investing. Just recently, I was on a panel for the
0:16.7	Bigger Pockets Momentum virtual investing summit with our friend Brian Burke. And he said something
0:23.1	really interesting. He thinks the sweet spot in real estate right now is properties with 5 to 25
0:29.9	units. And if you don't know, Brian, he's been investing for a long time. He's been in the game
0:34.7	for 30 years. He's been contributing to Bigger
0:37.5	Pockets since 2013. So he's one of the most successful investors in the entire BP community.
0:43.0	He's also just one of those people who's been right so many times that every time he says
0:47.6	something like this, I pay close attention. Now, if you've heard him on the show before, you
0:53.0	know that he's not shy about telling you
0:55.5	all the things that he's not investing in.
0:58.1	So when I heard Brian say he is interested in this asset class of 5 to 25 unit properties,
1:04.5	I wanted to find out more, and that's what we're doing on the show today.
1:08.7	On this show, we talk almost every episode about residential
1:12.0	real estate, which is properties from single-family homes up to four units. And we sometimes
1:17.3	talk about the other end of the spectrum, commercial, multifamily real estate, mostly in the
1:22.2	context of syndications that raise millions of dollars to go by very large apartment buildings or housing
1:28.9	developments. This middle ground, though, of 5 to 25 unit properties sometimes gets lost in the
1:36.2	shuffle. So I want to ask Brian what makes those properties attractive, whether we've hit the
1:41.5	point in the market cycle where investors should be jumping on deals in
1:44.9	this category. And then I'm going to ask him his advice on how investors can analyze, purchase,
1:50.4	and operate this type of property. Let's bring on Brian Burke.
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from BiggerPockets, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of BiggerPockets and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.