Why Your Small Town Is (Probably) the Best Place to Buy Rentals

BiggerPockets Real Estate Podcast

BiggerPockets

Education, Investing, Business

4.8 • 16.6K Ratings

🗓️ 16 September 2024

⏱️ 40 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Your small town might be the best place to invest in real estate, even if it’s got only a few thousand residents. We know—everyone has told you to go to the bigger, growing cities where you can chase appreciation, but today’s guest might change your mind. He was able to scale to over twenty rental properties in just a few years, all by buying in his rural Ohio town that you’ve probably never heard of. Even better? He bought the rentals with none of his own money, AND he was cash-flowing THOUSANDS per month. So how do you do it, too? Josh Bauerle tried to invest in real estate back in 2006. What was supposed to be a “quick flip” turned into a thirteen-year investment, which (thankfully) made a bit of money by the end. After taking a decade off from real estate investing, he got back in the game, first by buying a rental from his father and then by purchasing a twelve-unit real estate portfolio from a local friend. He then scaled FAST to a serious amount of rentals, all in a tiny town with a small population. After that, he stumbled upon the best-kept cash flow secret in real estate investing: section 8 rentals. Today, Josh is sharing how he did it without using his own money, and how you can do it, too, whether you’re in a sizable city or a small town. In This Episode We Cover: Why living in a small town is a HUGE advantage for real estate investing Seller financing 101 and how to buy rental properties without getting a traditional loan Using other people’s money to build a rental property portfolio Section 8 rentals, the pros and cons, and why they get you MORE rent than regular rentals The simple way that Josh has found his off-market real estate deals with social media And So Much More! Links from the Show Join BiggerPockets for FREE Let Us Know What You Thought of the Show! Get Free Property Management Software for Landlords with Hemlane Grab Dave’s Newest Book, “Start with Strategy” Find an Investor-Friendly Agent in Your Area See Dave at BPCON2024 in Cancun! The Pros and Cons of Accepting Section 8 Housing Connect with Josh Connect with Dave (00:00) Intro (01:27) A Failed "Quick Flip" (05:47) Taking a 10-Year Investing Break (09:17) Buying 13 Units at Once (15:13) Quitting His Job/Business (18:26) Using Other People's Money (20:11) Moving to a Bigger Market (23:53) Making More with Section 8 (30:10) Scaling Fast! Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-1018 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0	Many investors would find the prospect of owning real estate in a small town of just 6,000 people too risky to even consider.
0:09.0	But it's a little different when you grew up in that community and already know a lot of
0:13.4	potential partners and tenants. Today we're going to hear from an investor who
0:17.9	made the absolute most of these connections and mind all these advantages of a rural community where everyone knows
0:25.2	everyone and we'll talk about how this guest applied these lessons to a bigger
0:30.0	market that he eventually moved to. Hey everyone, welcome to the Bigger Pocket State Podcast. This is Dave Meyer and
0:42.1	we're starting this week with a story from investor Josh Barrelly.
0:47.1	Josh was a small town CPA in Ohio who took his portfolio to the next level by somewhat serendipitously acquiring 10 properties in a single
0:57.3	transaction and he did it without putting any of his own principle into the deal.
1:02.0	We're bringing on Josh and I'm excited for this conversation. any of his own principle into the deal.
1:02.6	We're bringing on Josh, and I'm excited for this conversation
1:05.5	because we're going to talk to him about how
1:07.2	his first supposedly quick flip investment
1:11.2	turned into a somewhat disaster. He had to hold on to it for 13 years.
1:15.4	We'll talk about the advantages he's found from investing in a small rural community and
1:20.1	when the benefits of accepting Section 8 tenants far outweigh the bureaucratic downsides.
1:27.0	Let's get to Josh.
1:28.0	Josh, welcome to the BiggerPockets Podcast.
1:30.0	Thanks for being here.
1:31.0	Hey, thanks for having me.
1:32.0	I'm excited to have you Josh and eager to jump in.
1:34.0	So tell me a little bit about your introduction to real estate investing.
	...

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.