BiggerPockets Real Estate Podcast

Renting vs. Buying a House: How to Get Wealthier with Either Decision

Date: February 6, 2026
Hosts: Dave Meyer (A), Henry Washington (B)

Episode Overview

This episode breaks down the perennial “rent vs. buy” debate with an investor’s mindset, challenging conventional wisdom that buying is always best. Hosts Dave Meyer and Henry Washington draw from their own experience as multi-property owners—both of whom have spent significant time renting—and dig into three key scenarios:

• When it makes sense to rent your primary residence
• When it makes sense to buy
• How to combine both strategies (including house hacking and the live-in flip)
  The episode’s goal is to show listeners how they can build wealth regardless of which path they choose, especially by thinking strategically about their personal living situation as a launchpad for financial independence.

Key Discussion Points & Insights

1. Rethinking “Rent vs. Buy” (00:00–03:49)

• Conventional calculators and advice oversimplify the decision, focusing only on immediate cash flow or monthly payment comparisons.

• Dave reveals he’s grown his net worth substantially while renting:

  “I spent five of the last six years renting a property, not living in a home I owned, and my net worth still grew a lot during that time.” (A, 00:22)

• The only market where buying is currently clearly better than renting is Pittsburgh (02:02).

• Key Insight: You can invest the money you save from renting in cash-flowing markets elsewhere.

2. Why Renting Can Be the Smart Investor’s Move (03:49–11:14)

• Markets like California, Seattle, and the Northeast make homeownership extremely expensive.

• Renting and investing the savings elsewhere often trumps buying your dream home, especially in pricey cities.

• Henry’s assessment:

  “If you're going to end up buying a house that's going to cost you $4,000 a month in a mortgage payment, and in that same market you can rent...for $2,000...it would make a whole lot more sense for me to rent...and put that two grand a month aside so that I can buy rental properties where it does make sense..." (B, 04:24)

• Dave adds that calculators often ignore amortization, appreciation (historically 3%), and tax benefits for owners—but if, after factoring in all these, renting is still cheaper, go for it.

• Flexibility matters:
  If you’re not sure how long you’ll stay in one place, renting is safer due to transaction (selling) costs:

  “If you don't know how long you're going to live in a specific place...there's transaction costs in the US—it's 6 to 8% essentially..." (A, 09:05)

• Guideline:

  • Less than 5 years: Likely better to rent
  • 4–5 years or more: Buying could make sense

3. When Buying Your Primary Residence Works (15:02–23:55)

Buying makes sense when:

• Rent vs. buy costs are near parity

• You plan to convert your home into a solid rental when you move

• Lifestyle preference for owning

• Dave’s example:
  Bought a non-dream home in a “path of progress” area; lived there five years, now holds as a high-equity, cash-flowing rental (A, 15:30–17:03).

• Caveat:
  Don’t default to buying your dream home early in your investing career; buy something that will later make sense as a rental and underwrite accordingly (A, 18:16).

  “If you're first getting into your home ownership journey, maybe...your first home...you're probably not picking that home as your forever home yet...Buy something that will make sense as a rental property down the road.” (B, 20:17)

• Maintenance:
  Homeowners should budget more than landlords, since personal standards are often higher (A, 23:04).

4. The Cheat Code: Owner-Occupy with House Hacking & Live-In Flips (28:02–37:50)

House Hacking

• Small multifamily living, renting out other units, or co-living in a single-family with roommates
• Offsets personal living expenses and builds equity/portfolio
• Dave:

  “House hacking for most people...is the best way to go about it. Like just on paper, you know, lifestyle decisions aside, it just makes so much sense...” (A, 30:22)

No Cash-flow? Still Worthwhile

• Even breaking even or living “for free” saves $ for next investment
• Most people who grow fast house hack multiple times in succession

Live-In Flip

• Buy a fixer-upper, live in it, renovate, and sell after two years (for capital gains exemption up to $500k as a couple)
• Benefits: owner-occupant financing, no rush to renovate, tax-free gains
• Dave’s personal experience—describes his own slow-burn live-in flip, not started renovations immediately (A, 34:22–34:45)
• Henry:

  “There are investors who literally do this as their primary resident strategy. They do a live in flip. They do it about three times, and by the third live in flip, they’re in this amazing dream home...” (B, 37:00)

5. Final Thoughts & Actionable Strategies (38:36–39:32)

• Decide as an investor: The “right” path is the one that helps you hit your investment and life goals fastest.
• Always “do the math” for your local market using robust calculators—no dogmatic answers.

“Just don't listen to dogma. Anyone says it's always better to rent or buy...Just do the math...Pretty much anyone can do it.” (A, 39:05)

Memorable Quotes

• “Both Henry and I own dozens of rental units...But I spent five of the last six years renting...and my net worth still grew a lot during that time.” (A, 00:22)

• “If you're going to end up buying a house that's going to cost you $4,000 a month...and ...you can rent...for $2,000...it would make a whole lot more sense for me to rent...and buy rental properties...” (B, 04:24)

• “If you don’t know how long you’re going to live...it usually takes three or four years of appreciation to overcome just the cost of selling. That’s something you really need to think about.” (A, 09:05)

• “Buy something that will make sense as a rental property down the road. If that's your goal...utilize your owner-occupied loans to buy something that can be added to your portfolio in the future...” (B, 20:17)

• “House hacking for most people...is the best way to go about it. Like just on paper, you know, lifestyle decisions aside, it just makes so much sense...” (A, 30:22)

Timestamps for Key Segments

| Segment | Timestamp | |-----------------------------------------------|------------| | Main theme & overview | 00:00–03:49| | When renting makes sense | 03:49–11:14| | Transaction costs & mobility considerations | 09:05–11:14| | When to buy your primary residence | 15:02–23:55| | Underwriting personal home as an investment | 20:17–23:55| | House hacking explained | 28:02–33:58| | The live-in flip | 34:17–37:50| | Final wrap and advice | 38:36–39:40|

Practical Applications

• Expensive Markets? Consider renting and investing elsewhere, or try a live-in flip.
• Not Sure You’ll Stay Put? Rent until your plans firm up.
• Ready to Buy? Underwrite the purchase as a future rental.
• Want to Accelerate Wealth? House hack repeatedly or leverage the live-in flip strategy if possible.

Closing Tone

Upbeat, candid, and focused on actionable advice. The hosts challenge dogma and encourage listeners to analyze their own numbers, emphasizing the flexibility and creativity that real estate investing allows.

For calculators and resources mentioned, check out biggerpockets.com/resources.