The Real Money In Rental Investing Isn't Always Monthly Cash Flow With Kyle McCaw (Ep 595)

What if the rental properties with the highest cash flow aren't actually the ones that make you the most money?On this episode, Kyle McCaw, a rental property investor and property manager, explains why investors shouldn't focus exclusively on monthly cash flow. While cash flow is important, Kyle believes the real money in rental investing often comes from owning well-maintained properties in good neighborhoods that attract long-term tenants.Kyle learned this lesson the hard way. His first rentals were high cash flow properties in rough neighborhoods. They generated monthly income, but they also came with a lot of headaches. When Kyle eventually sold those properties, he walked away with a substantial profit. He used a 1031 tax-deferred exchange to reinvest that money into better properties in better neighborhoods.Today, Kyle owns a portfolio of solid rental properties that are easier to manage, generate good returns, and have very little tenant turnover.We talk about how Kyle made money on his original rentals, why he believes better properties can generate more wealth over time, and his secret to finding tenants who stay for years.We also discuss what Kyle does with his monthly cash flow and his plan to use his rental income to pay for his kids' college education.https://rentalincomepodcast.com/episode595Thanks To Our Sponsors:Ridge Lending Group - Ask about the All-In-One loan. A first-position HELOC on rentals.Mid South HomeBuyers – Turnkey Rentals In Memphis, Little Rock, and Dallas. Instant Cash Flow On Day One. Ask about the 5-5-5 program. (Rates in the 5’s and 5% management fee).PadSplit - Earn 2.5X more rental income with PadSplit's shared housing model.

Most rental property investors look for existing homes to buy. Howard Jacobson takes a different approach. He builds them.On this episode, Howard explains why building new rental properties can be more profitable than buying existing homes. He shares how new properties can rent faster, attract better tenants, require very little maintenance, and create significant equity from day one.We talk about what Howard looks for when buying land, what makes a good building lot, and the type of rental properties he likes to build, including the ideal number of bedrooms and bathrooms. Howard walks us through the building process and explains why you don’t need to be a construction expert to do what he does. He says the business is much more about managing contractors and managing money than actually knowing how to build a house.Howard also shares how much equity he typically creates when he builds a property, how he finances construction without putting a lot of his own money into the deal, and some of the challenges that come with building smaller, affordable homes.We also talk about how Howard handles repairs when they eventually come up and why he believes building rental properties is something almost any investor can learn to do.https://rentalincomepodcast.com/episode594Thanks To Our Sponsors:Mid South HomeBuyers – Turnkey Rentals In Memphis, Little Rock, and Dallas. Instant Cash Flow On Day One. Ask about the 5-5-5 program. (Rates in the 5’s and 5% management fee).PadSplit – Earn 2.5X more rental income with PadSplit’s shared housing model.Ridge Lending Group – Ask about the All-In-One loan. A first-position HELOC on rentals.

Huy and Maribel Nguyen have built their rental portfolio around a pretty simple idea: buy houses they would be comfortable living in themselves.They focus on properties in good neighborhoods that need little to no rehab. By starting with homes already in good condition, they have found they attract tenants who pay on time, take care of the property, and tend to stay out of trouble.That strategy has also helped keep maintenance expenses low and made owning rentals much less stressful.On this episode, Huy and Maribel share how they choose properties, what they look for in a neighborhood, and why they prefer simple, move-in-ready rentals over heavy rehab projects.We also break down the numbers on one of their rentals and find out whether anything has gone wrong along the way, or whether owning rentals has really been as hassle-free as their strategy sounds.https://rentalincomepodcast.com/episode593Thanks To Our Sponsors:PadSplit - Earn 2.5X more rental income with PadSplit's shared housing model.Ridge Lending Group - Ask about the All-In-One loan. A first-position HELOC on rentals. Renttec Direct - Automate rental management for $25/month. (Promo Code: RIP for 10% off for 6 months)

Finding great rental property deals isn’t easy right now. But brothers Ben and Alex Jensen are consistently finding distressed properties they are buying below market value.On this episode, Ben and Alex share exactly what they’re doing to find deals in today’s market. We talk about what they’re buying, how they’re building their portfolio, and the website they use to identify pre-foreclosure opportunities.They break down how they reach out to property owners, the strategy that's worked best for them, and how they approach sellers who may not even be thinking about selling.We also look at two of their recent deals, including how they found each property, how they negotiated the purchase, and the numbers behind the deals. On one of the properties, they even convinced an owner who wasn’t looking to sell to make a deal.Ben and Alex walk us through their entire process for finding off-market opportunities and buying properties below market value.https://rentalincomepodcast.com/episode592Thanks To Our Sponsors:Ridge Lending Group - Ask about the All-In-One loan. A first-position HELOC on rentals.PadSplit - Earn 2.5X more rental income with PadSplit's shared housing model. Renttec Direct - Automate rental management for $25/month. (Promo Code: RIP for 10% off for 6 months)Mid South HomeBuyers – Turnkey Rentals In Memphis, Little Rock, and Dallas. Instant Cash Flow On Day One.

Michael Perna has been investing in rental properties since he was 20 years old. But one comment from Gary Keller, President of Keller Williams Realty, completely changed the way Michael thinks about building wealth with real estate.On this episode, Michael shares why he believes time is the most powerful force in real estate investing and why he has decided he will never sell his properties. Instead, he plans to hold them for life and eventually pass them down to future generations.Michael explains why he is willing to buy properties that may not work as traditional long-term rentals today. In some cases, he operates them as short-term rentals until rent growth makes them profitable as long-term rentals. His philosophy is that investors shouldn't obsess over what a property makes in year one or two. They should be looking five, ten, or twenty years into the future.We talk about how Michael got started using FHA loans with just 3.5% down, the wealth he has created through rent growth and appreciation, why he says money is a function of time, and whether cash flow or appreciation matters more.We also break down one of Michael's recent deals, including how he found the property and structured the purchase by taking over the seller's 3.5% interest rate.https://rentalincomepodcast.com/episode591Thanks To Our Sponsors:Mid South HomeBuyers – Turnkey Rentals In Memphis, Little Rock, and Dallas. Instant Cash Flow On Day One.PadSplit - Earn 2.5X more rental income with PadSplit's shared housing model.Ridge Lending Group - Ask about the All-In-One loan. A first-position HELOC on rentals.

At just 19 years old, Brady Newman already owns two paid-off rental properties. Now he wants to build to 10, but he is figuring out the best path forward. He feels kind of stuck where he is. Veteran investor Larry Myer, who has been investing for 42 years, joins Dan to help Brady create a plan.They discuss finding deals, choosing an area to specialize in, the importance of networking with other local investors, and why paying cash for every property may slow Brady down. Larry explains how financing and a line of credit can help Brady grow while keeping his existing properties working for him. He also shares why, once you become known in a market, opportunities start finding you.https://rentalincomepodcast.com/episode590Thanks To Our Sponsors:PadSplit - Earn 2.5X more rental income with PadSplit's shared housing model.Ridge Lending Group - Ask about the All-In-One loan. A first-position HELOC on rentals.Mid South HomeBuyers – Turnkey Rentals In Memphis, Little Rock, and Dallas. Instant Cash Flow On Day One.

Gloria Gear likes buying what she calls “little old lady houses”: older, outdated properties that many buyers overlook.She makes inexpensive upgrades that look great without breaking the bank, while also replacing major systems to avoid being nickel and dimed by repairs after a tenant moves in. By buying and improving these properties, Gloria creates approximately $100,000 in equity with each purchase.On this episode, Gloria shares the different financing strategies she has used to buy rentals, the upgrades that deliver the biggest impact for the money, and how she decides where to save and where to spend.She also explains her slow and easy approach to building wealth: buy a rental, fix it up, rent it out, and hold it for the long term. We also discuss her long term goal for her portfolio and why she believes successful rental investing requires constantly learning.https://rentalincomepodcast.com/episode589Thanks To Our Sponsors:Ridge Lending Group - Ask about the All-In-One loan. A first-position HELOC on rentals.MidSouth HomeBuyers – Turnkey Rentals In Memphis, Little Rock, and Dallas. Instant Cash Flow On Day One.PadSplit - Earn 2.5X more rental income with PadSplit's shared housing model.

When David Switzer first decided he wanted to buy rental properties, he did what a lot of new investors do. He started attending local real estate meetups. But he quickly noticed a problem. Everyone seemed to be looking for the same types of properties, running the same numbers, and struggling to find deals that actually worked.That led David in a completely different direction.Near his home, he came across a small commercial condo for sale. It wasn’t a huge office building or shopping center. In fact, the property cost a fraction of what he would have paid for a single family rental. David realized there was a side of commercial real estate that most small investors weren’t even looking at.On this episode, David shares the pros and cons of owning small commercial properties and how the numbers compare with residential rentals. We talk about how he finds deals, how he screens businesses before renting to them, financing commercial properties, who is responsible for repairs, and some of the strategies that haven’t worked for him.David also shares the problems he has run into along the way and what he has learned from investing in a part of the real estate market that gets far less attention than traditional residential rentals.https://rentalincomepodcast.com/episode588Thanks To Our Sponsors:Rentec Direct - Automate the day-to-day work and make property management easy. Use promo code RIP to get 10% off your first 6 months.PadSplit - Earn 2.5X more rental income with PadSplit's shared housing model.Ridge Lending Group - Ask about the All-In-One loan. A first-position HELOC on rentals.

John Salcedo started investing in rental properties close to home, but as property values, insurance, and taxes climbed, the numbers stopped making sense. Many of the properties he looked at would have generated little or even negative cash flow. Instead of giving up on buying rentals, John changed where he invested.On this episode, John shares how he successfully buys and self-manages rental properties from out of state. We talk about how he finds deals, evaluates properties remotely, handles renovations and turnovers remotely, and fills vacancies without being there in person.John also explains how he finances his rentals and the systems he uses to self-manage from hundreds of miles away. We break down the actual numbers on one of his deals, including the purchase price, rent, mortgage payment, and ongoing expenses. I am running a few minutes late; my previous meeting is running over.John also shares how renovating the property helped him create approximately $100,000 in equity.If you live in an expensive market where rental properties no longer work, this episode shows how looking beyond your local area can open up opportunities for better cash flow and equity growth.https://rentalincomepodcast.com/episode587Thanks To Our Sponsors:PadSplit - Earn 2.5X more rental income with PadSplit's shared housing model.Ridge Lending Group - Ask about the All-In-One loan. A first-position HELOC on rentals.Rentec Direct - Automate the day-to-day work and make property management easy. Use promo code RIP to get 10% off your first 6 months.

Justin Robbins got into real estate investing almost by accident. Before he even knew what house hacking was, he was doing it with his primary residence. That experience eventually led him to buy his first rental property because he liked the idea of mailbox money and earning a few hundred dollars a month in extra income.On this episode, Justin shares how he went from that first property to building his rental portfolio. We break down how he financed his purchases, where he found the money for his down payments, the types of neighborhoods he targets, and the properties that have produced the best results for him.We also take a detailed look at one of Justin’s recent deals. The monthly cash flow is thin, but Justin only had to come up with about $500 out of pocket to buy the property. We run through the numbers, look at the financing, and discuss whether a rental with limited cash flow can still be a good investment when there’s almost no money invested in the deal.https://rentalincomepodcast.com/episode586Thanks To Our Sponsors:Ridge Lending Group - Ask about the All-In-One loan. A first-position HELOC on rentals.Rentec Direct - Automate the day-to-day work and make property management easy. Use promo code RIP to get 10% off your first 6 months.PadSplit - Earn 2.5X more rental income with PadSplit's shared housing model.