Episode Overview

Podcast: Real Estate Investing School Podcast
Host: Brody Fawcett
Guest: Tyler Bennett
Episode Title: #142. REAL DEAL: Tips to Buying Your First Rental as a Married Couple
Date: March 21, 2024

This Real Deal episode dives into the story of Tyler and Shea Bennett’s first investment property purchase. Host Brody Fawcett (Tyler’s brother-in-law) explores how the couple found, financed, and transformed a single-family house near a college campus into a multi-unit rental property. The duo discuss creative strategies for first-time buyers, leveraging family partnerships, house hacking, and the essential mindsets for couples starting out in real estate.

Key Discussion Points & Insights

1. The Power of Creative Deal Structure (00:00–03:01)

• Partnership & Family Support:
  Tyler and Shea leveraged Brody’s parents as co-signers and 50/50 partners, enabling them to buy their first property despite limited credit and work history.

  “We wouldn’t have been able to do it. We just didn’t have the credit history... Being first-time homebuyers gave us that three and a half percent, which makes it doable and better for them, you know. So like you're saying it's a win–win.” — Tyler (00:00)

• Seller Financing on their Next Deal:
  Brief mention of their new seller-financed deal (5% down, interest-only first year) as an example of further creative structuring.

2. Deal Breakdown: Finding & Evaluating the Property (03:01–05:19)

• How They Found the Home:
  Spotted a “For Sale by Owner” sign near their rented basement apartment, pursued it with help from Brody’s mom.
• Advantages of Location:
  Chose a property “right by the college” (Dixie State/Utah Tech), maximizing year-round renter demand.

  “Right by the college, you have new college students coming in or new couples all the time. So there’s always renters available. That’s why we thought it would be such a good buy.” — Tyler (04:34)

3. Purchase, Rehab, and House-Hacking Strategy (05:19–12:15)

• Purchase Details:

  • Price: $450,000 (originally under contract at $480,000 but renegotiated after appraisal)
  • Down Payment: 3.5% FHA loan (about $16,000)

• Renovation Approach:

  • Single-family split-level home remodeled into three rentable units:
    • Split main house into upstairs and downstairs units (added a bedroom and kitchen to the basement).
    • Converted detached garage into a third unit (significant work: new roof, plumbing, electrical, walls).
    • Created a new laundry room for all tenants.
  • Rehab cost: ~$40,000 (split 50/50 with Brody’s parents).

  “We did a lot of it by ourselves... Your brothers are handy, so they taught me a few things.” — Tyler (07:21)

• Living/House Hacking Setup:

  • Tyler and Shea lived in one unit, renting the others.
  • Current rents (~$2,500) cover mortgage while living there.
  • Anticipated future gross rent (after moving out): $4,200–$4,300/month.

4. Partnership Structure & Financial Wisdom (12:15–21:03)

• Ownership & Cost-Sharing:
  • They did not split the down payment, but closed with Shea’s real estate commission and covered the remainder.
  • All ongoing expenses and profits split equally.
• Leveraging FHA & Family:
  • FHA loan allowed low down payment since they would owner-occupy.
  • Co-signers (Brody’s parents) provided necessary credit backing.
  • Reevaluating roles and management as Shea and Tyler prepare to move out.
• Family Partnership Benefits:

  “Being first-time home buyers, going to live in it, gave us that three and a half percent which makes it doable and better for them…” — Tyler (20:18)

5. Importance of Relationships, Creativity, and Tenacity (13:15–22:17)

• For Sale By Owner Advantages:

  • Less competition, more negotiation flexibility, and no realtor fees for the seller.

• Relationship Wins:

  • Personal connection with sellers helped beat higher cash offers after appraisal reduction.

  “He had higher offers, all cash... but he was emotionally attached to that (the buyers), and he did a huge favor.” — Brody (14:01)

• Adaptability:

  • Willingness to change structure, negotiate, and improvise as situations evolve.
  • Each new deal is a learning experience.

6. Marriage, Communication & Goal Alignment (22:17–26:59)

• Couple Dynamics:

  • Shea is the “go-getter,” actively seeking deals and negotiation, while Tyler is more laid back and task-oriented.
  • Early involvement and education for both spouses is critical for alignment and joint decision-making.

  “I think a lot of times you just gotta jump in and figure it out... If the numbers aren’t working, you can always back out.” — Tyler (22:22)

• Shared Vision:

  • Joint goal setting and accepting discomfort during remodeling and househacking builds resilience and partnership.

7. Tips for Married Couples & First-Time Buyers (26:59–28:27)

• Network & Share Intentions:
  • Let your network know you’re looking to buy/invest — off-market opportunities often come from friends, neighbors, or church contacts.
• Persistence Pays Off:
  • Don’t fear “bothering” sellers — be present and ready as opportunities arise.

  “Just put it out there. Tell people you’re wanting to get into real estate investing or you’re wanting to buy a house and people will bring you options, whether they’re good or bad.” — Tyler (26:59)

Notable Quotes & Memorable Moments

• On House Hacking’s Power:

  “There’s so much power in one deal, dude. One deal is setting you guys up and it’s paying for, you know, stuff for the rest of your life. And you do a few more, you’re financially free.” — Brody (28:50)

• On Mindset When Starting Out:

  “Sometimes I’m just along for the ride and trying to keep up with them (the go-getters), but I think it’s awesome.” — Tyler (23:10)

• On Role Models in the Family:

  “But you’re my dad in the relationship and she’s my mom. 100%.” — Brody (26:07)

Timestamps for Key Segments

| Time | Segment/Topic | |-----------|---------------------------------------------------------------------| | 00:00–03:01 | Intro, creative deal structuring, family partnership | | 03:01–05:19 | Discovery & overview of the deal | | 05:19–12:15 | Renovation details, house-hacking, rental breakdown | | 12:15–21:03 | Partnership structure, FHA, family leverage, and ownership | | 21:03–22:17 | Seller financing on their new deal | | 22:17–26:59 | Marriage communication, teamwork, and goal alignment | | 26:59–28:27 | Networking, persistence, and tips for first-time married buyers | | 28:27–END | Social handles, closing insights, power of one deal |

Actionable Takeaways for Listeners

• Seek creative financing: FHA loans and family co-signers make first deals possible with limited cash.
• House-hack for maximum benefits: Splitting a property into multiple units creates cashflow flexibility.
• Network and communicate: Most great deals are found off-market via networking; tell everyone you’re seeking a deal.
• Leverage each partner’s strengths: Married couples should align vision and combine unique skills—one can be the go-getter, the other the hands-on worker.
• Start before you’re "ready": Jump in, learn as you go, and don’t let resource gaps or nerves hold you back.

Connect with Tyler & Follow the Journey

• Instagram: @TylerBennett_Realtor
  (See real estate content and updates on their journey)

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