Buying a “Cheap” Rental Property: What 99% of Rookies Miss (Rookie Reply)

Summary

Real Estate Rookie Podcast — Episode Summary

Episode Title: Buying a “Cheap” Rental Property: What 99% of Rookies Miss (Rookie Reply)
Hosts: Ashley Kehr and Tony J Robinson
Date: December 19, 2025
Podcast: Real Estate Rookie by BiggerPockets

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Overview

In this "Rookie Reply" episode, Ashley and Tony tackle three crucial questions facing beginner real estate investors:

1. Should you get umbrella insurance?
2. What are the downsides to using an FHA loan?
3. Neighborhood vs. numbers: Should you buy a cheap property in a rougher area if the deal looks great on paper?

With practical examples and a conversational, supportive tone, the hosts dissect each scenario, provide actionable advice, and share personal stories to help rookies avoid common pitfalls.

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Key Discussion Points & Insights

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1. Should You Get Umbrella Insurance?

(Segment starts: 01:05)

• Listener’s Situation: The listener, Taylor, has several rentals—some in LLCs, others not yet due to lender constraints—seeking advice on umbrella insurance and liability protection.
• Main Points:
  • LLCs & Asset Protection: LLCs don’t prevent lawsuits but can protect personal assets and sometimes deter frivolous suits through complex structures.
    • Tony: "The asset protection’s goal is to hopefully prevent a lawsuit from happening in the first place... Sometimes it just discourages people from even trying to sue you in the first place." (02:17)
    • Ashley: Clarifies LLCs mainly protect assets inside the LLC, not stop lawsuits entirely. (03:06)
  • Umbrella Insurance: Provides liability coverage above standard landlord insurance limits—useful if a claim exceeds your primary coverage.
    • Tony: "The umbrella policy is what will be that backdrop to give you additional liability protection to cover whatever that shortfall is from your landlord insurance." (04:36)
  • Partnerships & Unknowns: Umbrella insurance especially wise in partnerships where you can’t always control potential mishaps.
    • Ashley: “I do still do the umbrella policy because it helps me sleep at night... I highly, highly recommend that you get an umbrella policy for your personal assets.” (05:41)
  • Cost: Umbrella policies are inexpensive compared to the coverage they provide.
    • Tony: "$2 million of coverage... was like 500 bucks for the year." (08:09)
  • Tax Benefits: The LLC can pay for the policy; premiums may be a business write-off.

Memorable Quote:

"If you’re on the fence about it and you feel like you’ve got enough assets to protect, then yeah, I would just say spend the 60 bucks a month and get the umbrella policy." — Tony (08:09)

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2. FHA Loan Downsides

(Segment starts: 10:55)

• Listener’s Question: Erica asks if having FHA financing makes offers less competitive and if sellers are wary due to FHA appraisals.
• Main Points:
  • FHA Inspection Hurdles: The real challenge is stricter FHA inspections (not the appraisal), which often result in required repairs before closing.
    • Ashley: Recounts a personal story where her uncle had to install stair railings to meet FHA inspection requirements before a sale could close. (11:17)
  • Seller Preference: Sellers may favor conventional loans over FHA/VA due to fewer hurdles.
    • Ashley: "Yes, it could be a deterrent." (12:20)
  • Alternative: Consider 5% down conventional loans; for a little more upfront cash, you can sidestep FHA limitations and be more competitive.
  • Offer Strengthening Strategies:
    • Raise purchase price.
    • Offer a larger earnest money deposit.
    • Offer to handle some required repairs yourself.
    • Understand seller motivations and tailor your offer accordingly.

Notable Quote:

"If I’m a seller...and one is FHA, one is VA, and one is conventional, yes, I’m going to be more towards wanting to take the conventional loan because there’s not as many hoops to jump through." — Ashley (12:16)

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3. Neighborhood versus Numbers: The “Cheap” Rental Property Dilemma

(Segment starts: 17:28)

• Listener’s Situation: Anthony is eyeing a property with strong returns on paper in a high-crime, low-income neighborhood but feels uneasy about the location.
• Main Points:
  • The Temptation of Paper Returns: Properties with high cash-on-cash returns often lure rookies, but the neighborhood quality can make or break the investment.
    • Tony: "A lot of rookie investors get, you know, googly eyed when maybe they see the prices for some of these properties in areas of town where...they can make a ton of money in terms of cash flow on paper." (18:08)
  • Ashley’s Story: Bought $20,000 duplexes that “looked great” (even exceeding the 1% Rule)—but they became “one of my worst properties.” Key issues: high turnover, frequent repairs, low tenant quality.
    • Ashley: "It was one of my worst properties... const antly repairs that needed to be made, capital improvements... and then just the tenant turnover... So, you know, it just, it didn’t work out for me." (19:08)
  • Systems & Strategies Matter: Some investors succeed in tough neighborhoods because they have systems and processes built for those challenges.
    • Tony: Shares Steve Rosenberg’s story—a portfolio suffered under one owner, thrived under another with better systems. (22:49)
  • Section 8 Tenants: May offer more reliable rent and less turnover in challenging neighborhoods. Ashley notes long-term voucher holders are usually solid tenants and suggests learning how Section 8 works locally.
  • Government Risk: During government shutdowns (or emergencies like COVID), Section 8 payments can be delayed. Landlords need reserves and robust risk management.
    • Ashley: "Just a prime example of making sure to really beef up your reserves and to not be over leveraged..." (28:57)
  • Investor Mindset: "If I could go back and do it again, I would... buy quality properties and really take my time and grow slowly." — Ashley (21:51)

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Notable Quotes & Memorable Moments

• On Umbrella Insurance:

  • “I do still do the umbrella policy because it helps me sleep at night, first of all. And it’s just giving me more money to be able to defend myself.” — Ashley (05:41)
  • "It is not a large expense...spend the 60 bucks a month and get the umbrella policy." — Tony (08:09)

• On FHA Loans:

  • "The FHA inspection... they're going to go through the property and look for things that they care about." — Ashley (11:09)
  • “If you have that extra little bit of money...you can just get the conventional loan and not even use the FHA loan.” — Ashley (12:56)

• On Buying in Rougher Neighborhoods:

  • “Everyone’s complaining they can’t even hit the 1% rule...I’m like, this is great. This is a home run deal. It was one of my worst properties.” — Ashley (19:08)
  • “If this is the only way that you’re going to get started, just prepare yourself that you are going to have more repairs and maintenance and vacancies than expect...” — Ashley (21:51)
  • "It does come down to the operator and how they work." — Tony (23:56)
  • "[Section 8] tenants would make their payments, their portion, because they did not want to lose that...there was like an eight year wait list to get a voucher." — Ashley (24:54)
  • “Just a prime example of making sure to really beef up your reserves and to not be over leveraged and to not put yourself at so much risk too as a rookie investor.” — Ashley (28:57)

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Important Timestamps

• 01:05: First question, umbrella insurance pros/cons
• 05:41: Ashley’s advice on umbrella policies for partnerships & personal assets
• 08:09: Tony on the affordability of umbrella insurance
• 10:55: Next question—downsides of using an FHA loan as a buyer
• 11:09: Ashley elaborates on FHA inspection hurdles
• 12:16: Seller preferences and FHA vs conventional
• 17:28: Final question—numbers vs neighborhood for “cheap” properties
• 19:08: Ashley details her cautionary tale (“3% rule” property nightmare)
• 22:49: Tony: Property management systems matter, Steve Rosenberg story
• 24:54: Ashley: Section 8 tenant realities, risks, and government shutdowns

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Takeaways for New Investors

• Umbrella insurance is a cost-effective, added layer of liability protection—especially wise as your portfolio grows or if you invest with partners.
• FHA loans offer low down payments, but stricter inspections and seller hesitancy can make your offers less attractive than conventional financing.
• Chasing high returns in rougher areas can backfire. Factor in turnovers, repairs, tenant quality, and your own risk tolerance. Investing in cheap properties isn’t always the fastest path to wealth; proceed with caution, solid systems, and sufficient reserves.

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End Note:
This episode is a must-listen for rookies weighing protection strategies, funding options, and the realities of chasing “cheap” investment deals. Ashley and Tony’s candid stories and step-by-step breakdowns offer invaluable context and make intimidating topics feel much more approachable.

Transcript

[A]

Welcome back to the Real Estate Rookie Podcast, where we help you get started in real estate investing the right way without the costly rookie mistakes.

[B]

That's right. Every week we break down real questions from real investors in the BiggerPockets community. And these are the same things that you're probably wondering as you look for your first or your next deal.

[A]

And today's lineup is stacked. We're talking about three topics every investor should think about early on, even if you don't think they apply to you yet.

[B]

First up, should you get umbrella insurance? Is it a smart safety net or just another bill that you don't need?

[A]

Then we'll cover the downsides of an FHA loan. Yes, it helps you buy your first house with less money down, but there's a few catches you should know before signing.

[B]

And finally, the age old debate neighborhood versus numbers. When the deal looks great on paper, but the block's a little sketchy, which one actually wins?

[A]

If you're brand new and trying to make smarter decisions with your first few properties, this episode is going to save you from a lot of headaches down the road. This is the Real Estate Rookie Pot Podcast. I'm Ashley Kerr.

[B]

And I'm Tony J. Robinson. And with that, let's get into today's first question, which comes from Taylor in the BiggerPockets forums. All right, Taylor says, should I get umbrella insurance? I want to explain my situation and curious what you all think if I should get umbrella insurance or not. I have regular insurance on all of my properties and I have two separate LLC. I have one LLC that I use for properties that I own 100% by me and another LLC that I'm using for properties owned 50 by me and the other 50% by someone else. So he's got two rentals owned 100% by him behind one LLC, one rental owned 50% by him behind a second LLC, and then two rentals owned 50% by him that are not behind any LLCs. These are ones that the lenders would not let me move into an llc. However, I plan to refi in the future if rates go down and put them behind an llc, the other property I'm looking to sell. All right, so questions on umbrella insurance and losses and liability protection, I guess. First, let's just put out a big fat disclaimer that Ashley and I, neither of us pass the bar. We are not attorneys or insurance agents for that matter, so definitely go talk to a qualified professional. But I think we'll just kind of give our take and, you know, you can take it for what it's worth. I think there's. And Ash, you explained this before and I thought it was like a great explanation, but the LLC and insurance both protect from liability, but they do it in different ways. The LLC or asset protection. Right. Whether it's an llc, a trust or whatever other NC you put your property into, the asset protection's goal is to hopefully prevent a lawsuit from happening in the first place. Okay. You know, we've interviewed asset protection attorneys and you can get super complicated with this, but if you set your entities up in a way, sometimes it just discourages people from even trying to sue you in the first place. Right, right. So that's the goal of, of your LLCs and your, and your trust and all the different legal entities you can use to hold ownership and protect your properties. Right. The goal is to prevent lawsuits from happening.

[A]

Tony. I think to clarify, like it doesn't prevent lawsuits from happening, prevents them from suing you personally or like prevents lawsuits against your other assets that aren't in the llc.

[B]

So yes, but so outside we had a conversation with Brian Bradley who is an asset protection attorney and I have like a, an off the record conversation with him and he was actually saying that there are certain entity structures that you can set up where when they go to try and see you, they realize that there's actually nothing for them to sue because of how complicated the legal structure is. Now that's like probably like the Ferrari of, of asset protection that a lot of rookies aren't going to need. But just know if you're a super high worth individual and you've got a lot of assets before you start investing in real estate that you want to protect, you know, there are ways to really just discourage people because it is such a complicated structure to sue you at all because they realize that maybe it's not even worth the hassle.

[A]

That's really interesting. Like I didn't know that, that there was that the complications. Like I knew like if you have, you know, no equity and you're completely leveraged and like even if they sue you, they get nothing. Like that would deter people. But that's really interesting. I didn't know that about like the complicating the actual setup can.

[B]

And again, don't ask me to repeat how that was set up because I couldn't tell you because there was something with like an, you know, like a foreign trust or something like that or you know, way beyond my scope. But you know, he did educate me on the fact that that, that is an option. And then the other piece, aside from the asset protection, is the insurance itself. And that's more so when something happens and you're. You're kind of in the thick of it. And insurance will usually cover damages up to a certain amount. Right. You know, maybe it's 500k, maybe it's a million bucks, maybe it's 2 million bucks. So the umbrella policy is there as a. An additional layer above and beyond whatever liability protection comes with your landlord insurance. So let's say that your landlord insurance coverages up, covers you up to like maybe 500k and you get sued because someone slips and falls and they want to sue you for $1 million. Well, now you're on the hook for that difference of 500k. The umbrella policy is what will be that backdrop to give you additional liability protection to cover whatever that shortfall is from your landlord insurance. So does it make sense? Potentially. But I think it goes back to what you said, Ash, of like, how much do you actually have to protect?

[A]

Yeah, I recently did a call with a different asset protection attorney just to, you know, see what my options are and things like that. And there's usually this big debate of putting one property into an LLC. So there's only one property in each LLC. So you're. If you have 10 properties, you have 10. LLC is which I have not done that. I've done it more as partnerships. And that's kind of seems what this person has done in this example. So the idea behind that is if you're putting, you know, one property that if something happens with that property, they can't take any of your other properties because it's only in that one llc. So there's different ways that you can do that. What I recommend is the umbrella policies for your partnerships. I have LLCs with my partnerships, but I also have umbrella policies on top of that because I know what I'm doing. But I don't always know what kind of liability exposure I have from my partners. So I'm not the one going out and completing maintenance or doing things like that. So I want to be able to make sure there's an extra layer of protection in case, you know, and still it could even be me that does something wrong. But I do still do the umbrella policy because it helps me sleep at night, first of all. And it's just giving me more money to be able to defend myself. The LLC defend itself from losing my assets. So most people, I would say, they put it in the llc. They don't get the Umbrella policy on top of that. But I highly, highly recommend that you get an umbrella policy for your personal assets. Like even if you don't have a rental property, you have your primary home. You, you and your significant other drive cars. Like have an umbrella policy on that. Especially if you are, you know, starting to build a nice net worth and build some kind of wealth for yourself too, is having that, you know, extra money to spend for your attorney fees for a settlement, things like that if something does happen. So I'm, I'm a big proponent of umbrella policies for sure. I think one thing to add in too real quick with an umbrella policy is you have your base insurance. So like that will pay out first and then the umbrella policy will pay out after that. So you might not even need to tap into that umbrella policy, but it's just like an extra coverage. So first would be your, you know, your landlord policy and then that would kick in and pay out until that was spent and then it would go to the umbrella policy to.

[B]

Last thing I'll say is that like these are not expensive policies, the umbrella policies. I was trying to find a recent quote that I got, I found from a few years ago and it was like $2 million of, of coverage. And obviously there's some nuances there, there are some carve outs, but it was like 500 bucks for the year, I think, right. That's like 60 bucks a month to get $2 million in coverage. So it is not a large expense. So if you're on the fence about it and you feel like you've got enough assets to protect, then yeah, I would just say spend the 60 bucks a month and get the umbrella policy.

[A]

Plus you can have your LLC pay the policy too. If you know the. If you have an LLC and the policy is for the llc, it's a business write off too for the premiums, well, you have to take a short break, but when we come back, we're going to be talking about the downsides of using an FHA loan. We'll be right back.

[C]

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[D]

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[A]

Our next question is from Erica and this question comes from the Bigger Pockets forums. Erica's question is for anyone who has utilized an FHA loan. Did you find it hard to find sellers that want to sell to buyers with an FHA loan due to the FHA appraisal? Does the FHA loan make you less competitive when making offers? Thank you in advance for any insight. One little thing I do want to clarify in this question is where she says buyers with an FHA loan due to due to the FHA appraisal. It's usually nothing to do with the appraisal because mo pretty much every bank financing you're going to get is going to make you get an appraisal. It's more of the FHA inspection. So if you go and you get an inspector to come out do a home inspection, this is completely different. FHA is sending out their own inspector and they're going to go through the property and look for things that they care about. I remember my cousin bought a property using her FHA loan and the, the inspection happened and they made them put up railings. There was no railings in the stairwell or something like that. And the seller refused to. So my uncle went over there like, and he's like, can I just put them up so we can get this house to close? And my uncle installed the railings even though they didn't own the house yet, just to get it to pass the FHA inspection and to move on. So the same with VA loans, like they have some extra hurdles and hoops you have to go through too. So if I'm a buyer or if I'm a seller and I'm reviewing my offers and one is fha, one is VA, and one is conventional, yes, I'm going to be more towards wanting to take the conventional loan because there's not as many hoops to, to jump through for the funding to get approved to purchase the property. So yes, it could be a deterrent. Another great option is not using FHA and doing conventional like FHA, you can do three and a half percent down, but conventional you can do 5% down. So if you're, you know, if you have that extra little bit of money, you're adding more equity into your home up front by putting a little bit bigger down payment and then you can just get the conventional loan and not even use the FHA loan.

[B]

Yeah, great, great points, Ashley. I've never personally used an FHA loan or sold to someone who has an FHA loan. But I think your points around an apples to apples comparison of offers, one with, you know, non FHA debt and the other with fha, that the FHA is probably going to be a little bit, you know, getting the short end of the stick. But to that point, I think there are ways that you can make your offer a little bit stronger as well. Right. Like purchase price is 1. Right. If you just simply offer more money, I think that's always one way to entice the seller, your earnest money deposit. Right. Like if you say, hey, I'm willing to give a bigger EMD to maybe get this deal done, it'll show that even though you're using fha, maybe you're a little bit more committed to, to getting the deal done. Speed is always important, but with an fha, it's probably a little bit out of, out of your control. You know, if you were closing with some other form of debt, I think that'd be easier. But those are probably the two things that I would focus on and maybe even just like in your contract saying that maybe you're willing to fund some of those repairs yourself up to a certain amount, right? So I think it's just trying to understand what the seller's motivations are and doing your best to speak to those specific motivations, even if the FHA inspection is a little bit of a headache. All right, guys, we're going to take our final break, but while we're gone, if you haven't yet subscribed to the real estate rookie YouTube channel, make sure you do that. That way you can see mine and Ashley's beautiful smiling faces every time you consume the content from the podcast. But we're at Real estate rickey on YouTube. You guys can find us there. We'll see right after the break.

[C]

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[D]

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[E]

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[B]

All right, we're back here with our final question and this question comes from anthony in the BiggerPockets forum. So Anthony says, I've started looking for properties for a long term rental investment. I'm in Greenville, North Carolina, a smaller city about an hour east of Raleigh. Since I've started looking, I have come across a few decent options. I found one property that has a good cash on cash return and a potential 10% cap rate, but it's in a lower income area and an area with higher crime. The property itself is in decent shape, the numbers line up and I'm thinking about going to put in an offer. However, I have some reservations about the street, the vacancy rate of the neighborhood, and just the overall gut feeling I get when I am there. Is my concern about the neighborhood justified or is this a common rookie mistake? Any thoughts from more experienced investors? Pros and cons for investing in lower income areas would really appreciate any feedback. It's a great question and I think a lot of rookie investors get, you know, googly eyed when maybe they see the prices for some of these properties in areas of town where yeah, maybe there is maybe lower income or higher crime. They're like, well man, I can make a ton of money in terms of cash flow on paper from what this deal looks like. And that's not to say that every area that's lower income or with higher crime, it's a bad area to to invest in. But I think you've really got to got to know the location to be able to find that balance and strike that strike that balance. Ash, you said quite a few times that you know, some of your deals look great on paper. End up being some of the hardest to manage. What's your experience been with great deals on paper? Maybe not as great of an area in real life?

[A]

Yeah, I mean, I hit the 3% rule at one of these $20,000 duplex. I was like, this is great. Everyone's complaining. They can't even hit the 1% rul of, you know, having, you know, one month's rent, you know, be at least 1% of the purchase price of the property. You know, it's getting 3%. I'm like, this is great. This is a home run deal. It was one of my worst properties. So this property, like I think the, the main point of looking at these properties is first, what are you going to be putting into the property? Are you bringing enough money? And does this deal deal still work if you're completely renovating the property? Okay, I had two pain points on this property and it was tenant turnover and it was repairs and maintenance. And the thing was the, the property was $20,000. It was in decent shape, but it had band aid after band aid after band aid put on the property before I even purchased it. And so for me to completely renovate these to make it nice, they would have been full gut rehabs. And if I would have put the money into doing that, the numbers would have no longer made sense. And I'm like, they're already rented out. I can do a couple cosmetic things. This is great, let's go. And that was not the case. There was constantly repairs that needed to be made, capital improvements down the road, and then just the tenant turnover. So just you get into some of these neighborhoods and this wasn't in the city. These were small rural towns. But there was way more turnover. It was harder to get a quality tenant. Most of the, the renters in the area were because they couldn't afford to purchase a house, not because they chose to rent, and then just the low income where people were stretching it to to make ends meet. So evictions, late payments, just turnover to people constantly moving higher crime. So, you know, it just, it didn't work out for me. So there was too many headaches that it wasn't worth the money. So I had about like five of these duplexes and there was like two towns where I had these properties and I've sold them all, I've gotten rid of them all. Luckily I was very fortunate to buy them in like 2017, 2018, and then I sold them in 2021 and it was three times what I bought them for. Like, this is great. So it worked out. But like timing the market is not something you can predict or you know, count on. But I would say if I could do it differently, I would have waited and I would have. If it was either I needed to save a bigger down payment or I needed to negotiate a different seller financing deal, I would have waited and built my portfolio so slower instead of just trying to accumulate units and like this is how I'm going to get so many units because I'm buying $20,000 duplexes instead. I'm going to buy quality properties and really take my time and grow slowly and make sure these are properties that I do want to hold on long term. So if I could go back and do it again, I would do that. But if this is the only way that you're going to get started, just prepare yourself that you are going to have more repairs and make it maintenance and vacancies than expect and make sure those numbers are inflated when you do deal analysis compared to maybe buying in a B class neighborhood.

[B]

Actually, you know, our friend Steve Rosenberg, he shared a story, I think it was at an event that we were at together once where he had a portfolio of a lot of homes that were in, you know, call it C or D class neighborhoods, you know, lower income, higher crime. Exactly what, what Anthony described here. And it was the bait of his existence, you know, and he ended up selling that portfolio off to another investor. And he somehow like came across that investor like a few years down the road and he was like, dude, how's that portfolio doing that that you bought from me? He's like, oh man, these are my best performing properties ever. Same exact houses, same exact, you know, tenant pool, but two totally different experiences. And what Steve shared was that the guy who he sold to, he had the right approach, systems, processes, frameworks to deal with that type of product and that type of tenant pool. So I think that if you are thinking about going into that type of product, then just make sure that you're equipping yourself with the right tools and resources to do it effectively. I would encourage you to maybe talk to property managers in that area and maybe get their sense of like, hey, what do you see? You know, what, what's working well, what's not working well. But really, really make sure you've got a rock solid process for vetting, for maintenance, for rent collection. Because it, I think it can be successful. We know a lot of folks who, who invest in lower income neighborhoods that do incredibly well. But I think it does come down to the operator and how, how they work. I think the last thing I'll say, Ashton, we don't talk about this a lot and I feel like we should do like, maybe like an expert led episode on this. But going after like Section 8 tenants might be a great way to, to kind of mitigate some of those challenges as well. Now, just like every other tenant, not every second eight tenant's going to be great, but I think there is maybe a stronger motivation from folks who are on a voucher program to stay in their units longer. And there's also the, you know, the government subsidies that allow them to make those rent payments. So maybe that's an option where you go into that same neighborhood, but as opposed to just opening up to everyone, you really focus on like the Section 8 program to try and at least get a little bit of support on, on making sure those rent payments come in.

[A]

Yeah, I, I've had several Section 8 tenants. I don't have any right now, but I found that very true that with them they would make their payments, their portion because they did not want to lose that. Like, last time I checked, I think it was like an eight year wait list to get a voucher in my market. So the thing that I did find was I had several tenants go on like temporary vouchers from like a very local, you know, housing authority or things like that. And that's when it didn't work out. Where it wasn't like, this could be like something they're set on for a long time. It was like, okay, they're gonna pay my rent for like six months to help me out. And those are the people that ended up just like stop paying. They got too comfortable with having that. And then when the six months was up, they, they didn't pay and we had to go through with eviction. So I found like, if it's a set program or someone's on for long term, seems to work out better than if it's just a short period of time. So I feel like it almost like enabled them and they got like kind of used to having that where maybe, you know, they weren't budgeting and saving and, you know, expecting when those six months end to start paying again. But that was just in my experience in those markets of, you know, the Section 8 tenants were great. You know, Section 8 comes in, the Housing authority comes in and does an inspection every year, and not only to like make sure you as the landlord are doing everything correctly, but also they'll, you know, make sure that the tenant is keeping the property in good order, too. There's not holes in the wall. Things like that. I did sit into, like, a housing authority had some kind of, like, meeting or whatever one time. It was like a free class or something. And I went to it and they had somebody speak, and it was like somebody from a homeless organization. And they talked about how you can list their units with them and they'll put homeless people in those units and then they will pay for them. And one of the things they did was they did a monthly inspection of the property that was provided to the landlord every month. I never did anything with that housing organization, but I guess there's, like, other ways, you know, other organizations that place people and things like that, too, where you can get on their listings just like Section 8, and have, you know, a housing specialist place someone into your property that's already approved. So that's another nice thing about Section 8 is that you can list your rental with them. And if you're one of their providers that work with them, like, they can easily, you know, place a tenant in your property. And it can really cut down on, you know, having to find a tenant and things like that, too. One thing I do think we have to address, and like, this episode isn't airing until quite a while from when we're recording this. It is October 29th that we're recording this. And this is, you know, when the government shutdown is happening. And there's always been this big stigma that, you know, section 8 rent is guaranteed, like, during COVID no offense, that a lot of you section 8 landlords are bragging, like, oh, this is guaranteed income, Section 8. Like, I don't have to worry about not being paid. But now there's a lot of talk about what happens when the government runs out of their reserves to actually pay the Section 8 voucher. So in most cases, we will most likely, even if they stop payments, that you will receive your back pay when the government opens up again. But what do you do in the meantime? And like, during COVID this, a lot of landlords experience, this is like, beef up your reserves, you know, make sure you have some kind of safety net if that is to happen. And you can't take action on any of these tenants if their vouchers aren't paid. You cannot evict them because the government is not paying their portion. And I think this is just another, like, warning sign for landlords, like, always have those reserves in place. You never know what is going to happen that will be out of your control. We saw that in Covid and we're seeing that now possibly with the government shutdown. So hopefully by the time this airs, the government is back up and running. This is not a concern at all, but just a prime example of making sure to really beef up your reserves and to not be over leveraged and to not put yourself at so much risk too as a as a rookie investor. Well, thank you guys so much for joining us today. I'm Ashley, he's Tony, and we'll see you guys on the next episode of Real Estate rookie.

[C]

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[D]

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