To Buy or Not to Buy Rental Property in 2025?

[00:00:00] Speaker A: Hello and thank you for joining. This is Heather Anderson with Rental Property News. Let's take a look at our theme of our stories this night. To buy rental property or not to buy rental property? That is the question. This guy says do it, but don't expect short returns. She says no. He, he says yes, even though the title looks like it says no. He says no. He says yes. He says no. She says yes. These people say yes. This guy says yes without a realtor. This guy says maybe. This guy says yes and she says yes. Let's take a look at each one of these stories and discern what is the answer for you, my one wild and precious friend, because that is all that matters. This is from Chris Rude, still thinking about buying rental properties and retire in a few years. Question mark. Let's see what he says. [00:01:16] Speaker B: So who here has bought a bunch of real estate and be like, oh, this thing ain't working out as great as I thought. It's not cash flowing like I thought. Raise your hand. Yeah, it's because you, for one, you probably didn't buy right. Two, you're using your own money and three, you thought it was going to be your passive instrument that you could just sell off into sunset. Do you live off of your 401 or one 401k? No, you don't live off your 401k. Buy and hold is a, is a slow and steady game. It's a 10 year game. You want it, you're buying rental property to retire off of, not to live off of. So who here has bought a bunch of real estate? [00:02:02] Speaker A: So how does that resonate with you, my friend? Are you looking to get rich slow, which is what you have a 99% chance of doing, or are you looking to get rich quick, which you have a 1% chance of doing. It might even be a little higher in this golden age as we have cryptocurrency and blockchain and web3 and new advancements and opportunities. However, real estate rental property investing is not for the slow game. It is the long game. And Patrick Murray agrees. He says one of the first of these experts quotation marks who tells the truth. And then we go down here, this guy, first party's right, but he, but, but I guess Jason Carpenter saying he didn't buy right. Well, Jason, I believe you always buy right because it's just a function of time. Real estate always goes up. It's just a function of how quick and how long does it take. So let's look at Ryan Pineda reacting to Corey Sanchez saying real estate is an awful way to make money. Real estate is an awful way for you to actually make money. Option one, you can go buy a single family home for $400,000, the average price in the US and then you rent it out to somebody. Well, the average rent nets you Profit wise, about $167 a month. So you're taking a $400,000 risk for a couple hundred bucks. Then you take the average small business you could buy, same way you could for buying a piece of real estate. So $400,000 business, you put some money down and get the rest from the SBA or seller financing, and the average small business makes 10 to 15% per year. You're cash flowing tens of thousands of dollars from a business instead of real estate. [00:03:57] Speaker C: Ironically, as a real estate guy, I actually agree with Cody. It does not make sense to buy a 400,000 do house. That makes you $167 a month for that amount of risk, that amount of headache, and everything else. So rentals are good for appreciation, they're good for depreciation and taxes, and you get principal pay down. So I'm not saying none of that's true. But when it comes to cash flow, they suck. And that's why there's all these other methods coming out with Airbnb and co Living and all this other stuff to try and get cash flow, because it's not really there anymore. But then it brings in a whole new argument of, okay, well, now you're actually just starting a business. Like Cody says, Airbnb is a business. You're in the hotel business now. Assisted living is a whole different type of business. So then you got to ask yourself, are there other business opportunities that are less risk, higher reward, less time frame to get going, less regulated? This is kind of what I just been telling people for a while. It's like, I would rather build a wholesale business, not take on any debt, just put up marketing dollars, go out and make tens of thousands if you're just starting, or hundreds of thousands if you're scaling. And I just believe it's a better opportunity overall if you want to make cash flow. And my advice is if you want to be in real estate and have a cash flow business, then start a wholesale business because that's going to lead you to everything else. [00:05:11] Speaker A: Great advice and points, Ryan as well as Corey. Let's dissect friends. So with Corey's advice, cash flow is not the game in rental property investing. And she's right. On day one, Just like the speaker in our first video. This is the long game. Let me repeat, this is the long game. Get rich slow. Your income is your cash flow. Your income from your job is your cash flow. If you are working regarding buying other investments, that cash flow better. If those investments call to you, if that excites you, if there's interest there in these niche and nuanced markets, then that is a pathway worth looking in. Because there are no wrong answers in any investment vehicle in which you choose to drive. That is for you to decide and discern. So what might be right for one investor is not right for another investor. What Ryan's saying about wholesaling, when you wholesale that in and of itself is a job, I would argue a full time job to be successful. Because you have to door knock, you have to put out flyers, you have to fly your doors, you have to put out signs and intersections, you have to be available to answer the call, you have to be available to go walk properties. These are activities which you cannot control the time frame on which they occur. And you want to be nimble, you want to be agile, you want to be quick. If you're working full time at a bank teller, as a bank teller, it's going to be very hard for you to be a wholesaler. So when you hear advice like Ryan's giving you, which is great advice for some people, you have to discern are you the person which he's speaking to? So, so you always do your own research. Jimmy Vreeland the title of his post says stop buying small return rentals. However, that's a misleading title because once we dissect this podcast a little bit deeper, we learn. Jimmy Vreeland challenges the obsession with quick rentals in real estate. Using the story of high earning vascular surgeon, he reveals why long term growth often beats immediate cash flow, especially for professionals with solid incomes. And the podcast is on Main street. Patriot.simplecast.com Stop buying rentals for 300amonth. And he goes on to say many new investors and business owners are under the misconception about abundant cash flow being easily obtainable. The episode highlights the reality that building cash flow takes time and strategic planning, often requiring substantial operational capital. Real estate can be a powerful tool for wealth creation through various avenues like appreciation, tax benefits rather than just cash flow. The importance of building equity over time is emphasized as a crucial component to wealth built wealth building and we see that time and time again in every successful first generation millionaires case study. Real estate should be viewed as a long term investment Strategy rather than a quick path to financial freedom. Aspiring real estate investors should have a stable income before heavily investing in real estate. So that's his podcast if you want to check that out. So looks like he's saying, hey, buy rental but don't expect cash flow. Do it for the other reasons to make money in rental property investing. Warren Buffett, the king of Wall street, the king of money invest, huge leader in our country, according to cnbc. Says Warren Buffett on investing, there's just so much opportunity in the stock market than real estate. He was giving an annual shareholder meeting. I believe it was his last one. And at Berkshire Hathaway. And the fame investor asked why he's still buying stocks instead of more property. And that's his response. And so we have some of our listeners over here. Confederate Memorial Chapel says, I don't know, Warren. I made my first million in real estate. And there's some other comments here. You know, we live in a cynical world, don't we? But who knows? Made sense for Warren, didn't it? Let's see what this gentleman has to say about rental property investing. All my rich friends who are chilling in life are chilling based on rental income. Yes. If somebody is really chilling in life and you know, and having a blast, then you can be rest assured they would have got the money because they're having rental income. Father bought a particular plot of land in the district. My father bought it at 87,000 rupees. And just today I sold it for 97 lakhs. See, it's a 100x return. All my, all my rich friends who are chilling bought rental property. Okay, Ajitish, I would agree. All of my rich friends that are chilling bought rental property, including the speaker of the voice behind this microphone. This gentleman living in Omaha, David Matney, says never buy a rental property. He's giving an example here of someone who absolutely should not buy a rental property right now. [00:11:01] Speaker D: Other mistake, and that is if you need someone else's money to fund the down payment, then you shouldn't be in business to start with. Don't go into business with family or friends. It's tempting, but if you can't do it on your own, then you shouldn't do it. It's going to strain relationships and I've seen families ripped apart over this. Same thing. Goes with loaning money. Never loan money to family or friends. It's hard. I've done it. It's going to make you mad. Especially if they live in a nicer home or drive a nicer car than you do. If you loan money to family or friends, you have to understand one thing. You didn't loan them that money. You gave them a gift. You chances are you'll never see that money again. Same thing applies with friends. The only ship that doesn't sail is a partnership. If you decide to go into a partnership, have things looked at and drawn up by an attorney. Make sure everyone has enough capital to start with. Going into business or a partnership with someone who is under capitalized is a bad business decision to begin with. Talk about problem number okay, the only. [00:12:10] Speaker A: Ship that sinks is a partnership. Quote by Dave Matney so have you ever been tempted to go into business with your friends or your family? Have you ever heard when you loan money to friends and family, it is not a loan at all. It is a gift. It is given whatever word you want to use. It is charity. It is an offering. It is a tithe. It is gone most likely. Why is that? Because terms and conditions are hard to set between two friends that have no experience in how to be the bank and the lender. And there's no typical processing or application or process to discern is this person worthy of a loan. Yes, you know them, but maybe you don't really know them. Or you don't really understand their financial aptitude or you don't really know their value system when it comes to loaning, paying money back that they have borrowed. So anybody that has been around the block a time or two knows, if at all you can avoid loaning money to friends or family. Whatever it takes, make sure to do that because it is not ever worth a relationship. [00:13:36] Speaker E: Three or more rental properties. You're probably on the path to level three wealth building status. What is Level three? Wealth building? It's how business owners are turning their business profits into net worth building machines. Level one is building a business that allows you to take everyday expenses as deductions and invest in assets. Level two is investing your profit in real estate so that you can build long term legacy wealth. So what is Level 3? Level 3 requires a CPA who understands the power of real estate investing at a deep level. That's why I created this free training how to know if you've outgrown your CPA as a real estate investor. Inside you will find the path to level three wealth building status. Remember, you've already accomplished level Want and level two. If you're watching this how to use the Snowball effect to exponentially grow your net worth every single year and how to make sure that your current CPA is maximizing your tax savings as a real estate investor. So if you're interested, click on the link below to get instant access. [00:14:51] Speaker A: Great advice from Taxbox Anna and also a great system she's created with level one, two and three. She's a Latina accountant and tax strategist for real estate and business expert in maximizing tax savings and One of the most important and valuable attributes of owning a rental property business is that it is indeed a business as long as it's active and properly structured. There is an underworld of opportunity, an iceberg if you will, in the tax code. The ever growing huge invasive jungle of a tax code and people like Taxbox Anna, I can assure you are a great navigator and guide around the intricacies of that confusing depth of a world. And if you're a W2 now beginning or have already started and ready to grow your rental property business, not even necessarily by buying more properties, but by growing your knowledge and building your sphere of people like Tax Boss Anna that can help you go to the dimensions that you might not even know were possible to you. Because the largest opportunity for most normal people like me and probably like you, is tax strategy when it comes to rental property investing. Not cash flow like he like Chris Rood reminded us of. But tax strategy like Tax Boss Anna is letting us know. So these people that finance Yahoo Bazinga said you can you guess what the rich are investing in? Nearly a quarter of the wealth is tied to one asset, and it's not stocks. While the headlines scream about AI stocks, crypto millionaires, the wealthiest individuals on the planet, are quietly putting their money somewhere much more stable. And it's far less flashy. Property still reigns in 2025 According to Knight Frank's wealth report, wealthy investors are still betting big on real estate. In fact, 22.5% of their portfolios are made up of direct property investments, nearly a quarter of their wealth parked in something tangible. Let's take a look at this Knight Frank's Wealth Report in 2025 so knightfrank.com made its 19th edition of the Wealth Report, offering a definitive analysis of private wealth and global investment trends. This year's report examines evolving behaviors of private investors in family offices, providing in depth insights into both commercial and residential real estate. It also explores the performance of luxury assets, emerging ESG investment opportunities in specialist markets such as vineyard investments. That's kind of Greek to me. Supported by our proprietary wealth sizing model, whatever that is. An exclusive surveys of family offices and affluent young investors. The report highlights key shifts in luxury buying power, the growing influence of young generations, the rise of digital nomadism and the increasing emphasis of sustainability. Additionally, it delves into the evolving art market, maybe NFTs and popular yacht destinations, and the world's most desirable real estate hotspots, delivering valuable insights to guide private investors. So the early months of 2025 have been marked by ongoing market uncertainty driven by rapid AI led technological advancements, geopolitical volatility and heightened investor sensitivity to potential financial bubbles. However, despite these challenges, global GDP is projected to grow steadily. Isn't that surprising with all the doom and gloom with forecasts suggesting a stronger performance than in the past two years in the real estate investment volumes following a sharp decline from the 2021 peak are beginning to stabilize. Data from the latter half of 2024 indicates a recovery trend which by the way, if you've seen other rental property news episodes, you would see contrary reports stating that that's not the case. So who knows what's right for reinforcing the increasing role of private capital in the sector? Notably, 44% of family offices plan to increase their real estate investments, underlying underlining continued confidence in the market's long term prospects. So isn't that interesting this gentleman real estate investor Siam Ibrahim's tip on cash flow, rental properties and more so Mr. Ibrahim is bullish on rental property investing. However, he's saying do it without a realtor. Offering practical advice for those looking to enter the real estate market in 2025, Abraham noted that many of his own successful transactions were made directly with property owners, avoiding the complications of realtors. He says, we bought over 1400 properties and over 95% of the properties we bought were off market direct to owner. He said one of the best strategies for targeting retire is targeting retiring landlords, right? So people that own properties for 20, 30, 40, 50 years and maybe they're tired, maybe they just want to move on, maybe they're done with management or they had a bad recent eviction and were able to lock in a great deal. Because someone who bought a house for 30,000 30 years ago, I can offer them 80,000, 100,000 a day, but it's worth 200 after I put some love into it. So although I have no doubt this is a great strategy for Mr. Ibrahim, who is we and are you a we or are you a you? That is an important question. And 1400 properties is a lot. That is a lot of properties. So Mr. Ibrahim for sure has a we in order to achieve that. Where are you on your journey My friend, are you at property number one or are you at property number 1400? When you read things like this, you must discern where you fall on the spectrum so you can take parts of what Mr. Ibrahim is saying. Are you prepared, able and ready to find these off market investors, these retiring landlords, where are they? What do you say to them? Are you ready to perform? How do you know what it's worth? How do you know what you can put into it? How do you know what kind of love to put into it? Where will you fund that love? How will you close? How do you run title? All those are great questions and they absolutely have answers. And you get to decide, is that the right business model for you? So our next article says, is San Diego real estate still a smart investment? My take as a local expert in 2025, this is the signal Santa Clara Valley. Our pros are high demand, strong economy and quality of life. Who doesn't think San Diego is beautiful? The cons are high cost market volatility, a complex market. Well, it's a well read article. However, we're going to skip to the bottom here. Conclusion. Is San Diego right for you? And that is exactly the conclusion. Basically it says, look you, everybody's different. It's not right for every investor out there. Why? Because probably it's expensive, lots of competition, you have to probably put more money down, etc. But maybe you're playing the appreciation game. So that is something to pay attention to. And if you like this episode and others of Rental Property News, please like or subscribe to our channel by giving your precious time and helping us grow this message this tribe Will you be our 55th subscriber? I can assure you this will be the 128th video. And if you like what we're doing as well, check out our website@rental property you.com and you can click schedule a consult if you want to learn how to be an investor rental property investor in Dallas, Texas. Or learn how you can contribute your treasure or your talent to our growing cause of bringing truth to this confusing space and helping you discern what's right for you with your time, treasure and talent and your willingness and ability. We help people talk. We talk people out of buying rental property more than we help them facilitate building a rental property portfolio. We want you to find the right vehicle for your precious money and goals. So and then Thak Nguyen, who is a rental property investor, probably just as successful if not more than Mr. Ibrahim with his 1400 doors. He says, I used to think working Harder would make me free. But freedom came when I started owning real estate. You don't get wealthy trading time for money. You get wealthy owning assets that pay you forever. I bet that indeed worked out for Mr. When. And this young lady is promoting an event called the American Dream Rally. Live events and workshops to help you build wealth, protect assets and achieve the ever so alive American Dream. Let's see what she has to say. [00:25:43] Speaker F: Don't let anyone tell you the American Dream is dead. Right now there's a movement sweeping across America and it's proving that it's possible to build real estate wealth using the same technique banks and billionaires have used used for decades. Everyday people just like you are currently buying property up to 70 off market value. Thanks to this hack, they're building a lifetime of cash flow using nothing but a laptop. If you want to get in on it, all you have to do is click on the link and sign up for the American Dream Rap. This isn't some automated seminar. It's a real event happening live and in person in Dallas, Texas. Make sure to click on the link to secure your spot and put your financial freedom on the fast track. [00:26:20] Speaker A: Track. Okay, let's see where that link takes us. Takes us toAmerican Dream rally.com and this is for the American life changing American Dream Rally. It's our first step before toward financial growth and generational wealth. Our powerful lineup of expert speakers will equip you with the tools, knowledge and inspiration to help you achieve your American dream in 2025. Beyond are you ready to secure your seat on June 18th? This looks like a one day event and I clicked on the link and it takes you to the sign up page and it looks like seats are $37. Is it worth $37 to you on a day of your time to feel and learn about the American Dream? And remember when A ticket is $37 for a one day event you can be assured there is an upsell involved. So go into that, knowing that, expecting that. Take what you like and leave the rest and highly, highly, highly consider whatever they are selling before you buy. They're probably going to have a one day only price that's going to try to encourage you to buy it that day because they know once you leave chances are you won't. So prepare for that. But do you believe in the American Dream still being alive and well? Well I can tell you yesterday, today and tomorrow, yours truly behind the mic will, has and always will. And you know who else did. In order to prepare for the future we must first, learn from the past. So this day in history, June 15, 249 years ago, George Washington was appointed. I'm sorry, 250 years ago, on this very day, George Washington was appointed commander in chief, the Continental Army. Attending the second Continental Congress in military uniform, George Washington was appointed as commander in chief of the Continental army by his fellow congressmen. What is the Continental Army? As major General and commander in chief of the Continental Army, George Washington won the military struggle American independence. Remarkably, however, Washington's army won only three of the nine major battles that he oversaw, and the army was often retreating when facing larger forces. Even some of the army's victories were more strategic than measurable in military terms. But ultimately, the Continental army contained the British and ensured American victory. Washington was instrumental in ensuring the success of the Continental army on the battlefield and in advocating for the material needs of an army. So if he only won three of nine, that's one third was his value in advocating for material needs of an army. Did he have deeper skills than being an army mastermind? Did he understand people? Did he have a vision? Was he put in a place for such a time as this? George Washington is credited with winning the American Revolution primarily due to his leadership as commander of the Continental Army. While the war involved numerous battles and contributions from many individuals and nations, Washington, strategic decisions and ability to maintain morale. There it is again. More maintain morale, especially during difficult times, were crucial to the American victory. And as you can see on this timeline, from this day 250 years ago, through the years of battles and all the way through, all the way through one year later when the Declaration of Independence was formed in 1776. The Battle of Long island, the Battle of White Plains, the Battle of Trenton, the Winter Patriots, the Battle of Princeton, the Battle of Brandy wine in 1977. The Battle of Germantown in 1977, 1977, he arrives in Valley Forge. The Battle of Monmouth, 1979. Double agent Benedict Arnold betrays Washington in 1980. Five years later, what a plight. Victory at Yorktown. Six years later in 1781 and then 1783, he delivers the new borough address. And then he surrenders his commission. At the very end, a few days before Christmas of 1783 and before he went to start his new job as commander in chief, notified on this day 250 years ago, he wrote a letter to his brother, John Augustine Washington. Five days and 250 years from this moment as I speak into this microphone. And the letter to his brother said from Philadelphia, Dear brother, I am now to bid adieu to you and to every kind of doom. Stickies for a while. I am embarked on a wide ocean bound to listen its prospect from whence perhaps no safe harbor is to be found. I've been called upon by the unanimous voice of the colonies to take command of the Continental Army. An honor I neither sought after nor desired. And I am thoroughly convinced that it requires great abilities and much more experience than I am master of to conduct a business so extensive in this nature and arduous in the execution. But the partiality of the Congress, joined to a political motive really left me without a choice. And I am now commissioned a general and commander in chief of all the forces now raised or to be raised for the defense of the united colonies. That I may discharge the trust of the satisfaction of my employers is my first wish and that I shall aim to do it. There remains as little doubt of how far I may succeed is another point. But this I am sure of, that in the worst event I shall have the consolation of knowing, if I act in the best of my judgment that the blame ought to lodge upon the appointers, not the appointed, as it was by no means a thing of my own seeking or proceeding from any hint of my friends. I am at liberty to inform you that the Congress and a committee which will, I dare say, be agreed to when reported have converted into a continental currency have ordered 2 million of dollars to be struck for payment of the troops and have voted 15,000 men as the Continental army. Which number will be augmented as the strength of the British troops will be greater than we expected at the time of passing the vote. General Ward, General Lee, General Schuyler and General Putnam are appointed major generals under me. The brigadier generals are not yet appointed. Major Gates, adjunct general. I expect to set out tomorrow for Boston and hope to be joined there a little time by 10 companies and riflemen from the Providence, Maryland and Virginia. For order of articles of Intelligence, I shall refer you to the papers and the printers are diligent in collecting everything that is still. I still hope that my friends will visit and endeavor to keep the spirits of my wife as much as they can as my departures will, I know, be a cutting stroke upon her. In this act alone, I have my very disagreeable sensations. I hope you and my sister, although the distance is great will find a much leisure this summer as to spend little time at Mount Vernon. My sincere regards attends you both and also the little ones. And I am most affectionate, your brother Washington. What will your June 15 be? Will it be a moment in time like it was for George Washington, documented in this letter. And as you saw the history of his war, he came back after leading the American Revolution to be our first president. Two terms and two terms only. April 30, 1789, to March 4, 1797. He passed away two years after that. For George Washington was made for such a time as this. What about you? What is your mission? What's the letter you will write? What are the sacrifices you will make for those you love and the mission in which you serve? [00:37:16] Speaker G: And I was at some event and somebody raised their hand and said, is the Holocaust the most important event since the birth of Jesus Christ in world history? And I just immediately said, no, it's the American Revolution. It's the American Revolution. I mean, this is a sea change in the course of human events. And man, we don't know enough about it. We don't know enough of the interiors of it that are complicated. I have in my editing room a neon sign. I've had it for a decade and a half. In cursive, lowercase cursive. It says, it's complicated, you know, because there's not a filmmaker on earth that if you know, if the scene's working, you don't touch it. But we have. We have spent the last 50 years touching those scenes. Right? You know what I mean? Going in. Maybe it's lesser, but it's truer. And it's got more dynamism and it's got more contours. [00:38:08] Speaker A: It feels. [00:38:08] Speaker G: Feels like it's accurate to what actually happened. Which is more complicated than our sort of simple binary discussions of what history is. [00:38:21] Speaker A: So will this be the moment for you? Will this be the moment in your life? As Ken Burns said, that was the moment. Is this where you build your legacy? Is this where you start the journey to building an entire trajectory change for your downline for generations to come, one rental property at a time? Or is it another business model for you? You get to decide. And once you decide, you can change your course. How are you the George Washington of your financial investment future? Dear friend, hope this message imparts truth upon you. Reflection and appreciation for the beautiful foundation that has been set before you. And if you're an American that gets to reap the benefits of the labor of this incredible leader of George Washington that we had, or you're a friend across country lines that's hearing these words. Either way, opportunity is there for you. It's up to you to take it. Until next time, friends. And remember to like and subscribe. Will you be number 55.