BiggerPockets Real Estate Podcast
Episode: How to Buy Your First Rental Property in 2026 (Step-by-Step)
Hosts: Henry Washington & Dave Meyer
Release Date: January 14, 2026

Episode Overview

In this episode, hosts Henry Washington and Dave Meyer break down a practical, step-by-step framework to help aspiring investors buy their first rental property in 2026. Drawing directly from their own diverse investment experiences, Henry and Dave guide listeners through the seven concrete steps—goal setting, strategy, market selection, financing, deal analysis, making offers, executing the business plan, and evaluating to improve for next time. Their advice balances actionable tactics with the bigger-picture mindset shifts required to build long-term wealth in real estate.

Key Discussion Points

Why Real Estate? (00:00–04:13)

• Building Wealth and Security:
  Henry emphasizes rental property investing as an accessible wealth-building tool for everyday people—not just seasoned pros or those with large portfolios.

  "Rental property investing is the average person's way to build wealth. Whether you want to make $50,000 a year or $500,000 a year, you can do this." – Henry Washington (00:39)

• Control & Independence:
  Dave points out that relying solely on jobs, employers, or government for financial security is a thing of the past, and using real estate entrepreneurship puts your future in your own hands.

  "A lot of it's gotten harder...how do I do something entrepreneurial? So that I can take some control over my own financial future." – Dave Meyer (02:18)

• Achievability:
  Even as the market evolves, real estate can still provide financial independence in under a decade if approached methodically.

  "If you just dedicate yourself to learning this craft, you can do it in under a decade." – Dave Meyer (03:50)

The Seven-Step Framework

1. Set Tangible Goals (04:35–08:51)

• Be specific about how much money you want to make and your timeline.
• Goals dictate your strategy—aggressive, passive, immediate cash needs, or long-term wealth.
• Henry shares personal goals, aiming for $600k–$1M annual net profit from flips and a steady increase in unleveraged (debt-free) rental cash flow.
• Being crystal clear on targets helps focus efforts and avoid wasted time.

Notable Quote:

"How much money are you trying to make and in what timeframe? Because your goals are going to dictate the strategy that you use." – Henry Washington (06:15)

2. Define Strategy & Choose Your Market (08:51–13:50)

• Your investment strategy stems from your goals; e.g., flipping for quick cash, long-term holds for stability.
• Focus on buying "a great asset in a great location that I'm going to be proud to own for the next 30 years." – Dave Meyer (10:41)
• Market selection should fit the strategy, not just be based on affordability or proximity.

Memorable Moment:

When asked the best market, Henry replies: "I have no idea for you...I don't know what you want to do, what your goals are. That's truly the way you should be looking at picking markets." – Henry Washington (12:49)

3. Secure Financing & Start Finding Deals (17:21–23:19)

• Order Debate:
  Dave and Henry discuss whether to first talk to lenders or to start finding deals, ultimately agreeing both are important and should happen concurrently for first-timers.
• Buy Box:
  Define exactly what you want: property type, price range, location, size, build year, etc.

  "I recommend for new people to be as specific as you can...trying to just be like, this is what I'm going to do first." – Dave Meyer (19:02)

• Lender Conversations:
  Don’t assume you can’t afford a property; talk to multiple lenders, explore a variety of loan products and programs.

  "Please just go talk to a lender...they will give you a number that you could go put into your buy box." – Dave Meyer (19:23) "Talk to multiple banks and get a consensus from them and that will truly help you understand what you can and can't go do." – Henry Washington (21:29)

4. Analyze Deals (23:26–33:08)

• Use deal calculators, but realize the key variables are accurate assumptions for after-repair value (ARV), rehab costs, and rent.
• Learn ARV through realtor relationships; estimate rehab costs by talking to other investors and reviewing real contractor bids.
• "The formulas are super easy...But your assumptions, like how much rent you can collect, the ARV of a property, what your expenses are going to be, that is hard." – Dave Meyer (24:55)
• Develop benchmarks for what's a "good deal" (e.g., 7–10% cash-on-cash return for rentals; at least earning what you spend on a flip renovation).

Memorable Quotes:

"Rent, you can usually figure. I don't think rent estimates are that hard, but if you can nail those two things [ARV and renovation], it's really going to help you a lot in your deal analysis." – Dave Meyer (26:26)

"If you can get somewhere between 7 and 10% cash on cash return for a rental property, you're probably doing very well." – Henry Washington (29:53)

"At 15%, your money will double every five years...I can 8x my money in the next 15 years." – Dave Meyer (31:16)

5. Make Offers (36:03–41:23)

• Push through psychological barriers—fear of rejection is common, but making offers is a numbers game.
• Use respectful but assertive offer strategies (e.g., “disrespectful offers, respectfully”), including verbal/text offers for efficiency.
• Many deals are made at a price sellers didn’t expect, and negotiating respectfully can win them over.
• Focus on the mutually beneficial aspects of a deal.

  "I think people are just scared of rejection and so they don't make enough offers...We have to learn how to make uncomfortable offers. Or as I like to put it, we have to learn how to make disrespectful offers. Respectfully." – Henry Washington (36:21) "It's the seller's decision whether they're willing to take that offer or not…at the end of the day they don't have to sell you anything. It's a business decision." – Henry Washington (41:20)

6. Execute & Stabilize the Investment (41:36–45:45)

• Prioritize executing the immediate business plan post-closing (renovations, tenant placement, etc.) before thinking about the next deal.
• Time is money! Document every step, vendor, and lesson to repeat or improve in the future.

  "When you are operating a real estate business…literal time is money. Because if it's a rental property, the longer it's not rented, the more it's costing you." – Henry Washington (43:00) "Execution and timing is everything...I would encourage you to document as much as possible about what you are executing when you're getting started." – Henry Washington (43:35)

7. Evaluate and Iterate for Next Time (46:11–49:01)

• After stabilizing the property, take stock: Did you enjoy the process? Was it profitable? Are your original goals still right for you?
• Adjust goals, strategies, or markets as necessary based on real experience.

  "You're either gonna get better and more efficient at the thing you currently executed against or it is okay to go back to your goals and say, nope, it's not this...I have to try something different. And that's okay." – Henry Washington (46:44)

Episode's Most Notable Quotes & Moments

• On Achievability:

  "Buying on market average deals, if you just dedicate yourself to learning this craft, you can do it in under a decade." – Dave Meyer (03:50)

• On Goals:

  "How much money are you trying to make and in what timeframe? Because your goals are going to dictate the strategy that you use." – Henry Washington (06:15)

• On Market Selection:

  "I have no idea [what's the best market] for you...I don't know what you want to do, what your goals are." – Henry Washington (12:49)

• On Offers:

  "We have to learn how to make uncomfortable offers. Or as I like to put it, we have to learn how to make disrespectful offers. Respectfully." – Henry Washington (36:21)

• On Execution:

  "Execution and timing is everything when you are operating a real estate business. Because literal time is money." – Henry Washington (43:00)

Timestamps for Key Segments

• [00:00–04:13] Why Real Estate & Building Wealth
• [04:35–08:51] Step 1: Setting Tangible Goals
• [08:51–13:50] Step 2: Strategy & Market Selection
• [17:21–23:19] Step 3: Financing & Deal Finding/Get Your “Buy Box”
• [23:26–33:08] Step 4: Analyzing Deals & Knowing a “Good Deal”
• [36:03–41:23] Step 5: Making Offers (Respectfully Uncomfortable)
• [41:36–45:45] Step 6: Execution—First 90 Days and Stabilization
• [46:11–49:01] Step 7: Evaluation & Adjusting for Future Growth

Actionable Takeaways

• Set explicit, measurable goals—this guides every other decision.
• Pick a strategy and location that fit those goals, not just what's popular or local.
• Define your buy box—a very specific type of property you want.
• Talk to multiple lenders early, even if you think you can’t qualify.
• Analyze deals using conservative estimates; learn ARV and rehab costs from others.
• Make lots of offers—expect and accept rejection.
• Execute efficiently post-close, and document every lesson.
• After stabilizing the property, honestly reflect and adjust your game plan for next time.

Conclusion

Henry and Dave's seven-step framework is both approachable and flexible—grounded in real investor experience, candor about hard lessons learned, and the empowering belief that anyone can achieve financial freedom through real estate with the right roadmap. Consistent action, clear goals, and a willingness to learn from mistakes are their ingredients for success.

"This is truly the things Dave and I are doing every day in our portfolio...these are steps that everyone can follow." – Henry Washington (49:34)

Listen to the Full Episode

For a deeper dive into each step and more insightful stories, listen to the complete episode on BiggerPockets or any major podcast platform.

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