BiggerPockets Real Estate Podcast

Target small multi-family properties (duplexes to fourplexes) using the 1% Rule, ensuring monthly rent equals at least 1% of the purchase price to guarantee positive cash flow. Use an FHA loan to "house hack" a property with only 3.5% down, allowing you to acquire assets like a $250,000 fourplex for roughly $8,000 out of pocket. Increase your yield by transitioning units to Section 8 housing, which can command higher-than-market rents for two-bedroom units in emerging markets. Force appreciation by targeting "ugly" Zillow listings that have been on the market for months, then use sweat equity renovations to trigger a higher appraisal for a cash-out refinance. Always maintain a cash reserve of at least $300 per unit monthly to cover emergency capital expenditures like HVAC or plumbing failures.