← Real Estate Rookie
Loading summary
Transcript37 lines
- [00:00]
Ashley Kerr
What's the best way to invest 25,000 and scale your portfolio? It's a question many new investors face. But what's really the best move in today's market?
- [00:11]
Tony J. Robinson
And once you figure out your strategy on how to invest that 25,000, how do you pick the right market? For instance, investing out of state can be a little tricky when you can't just drive to the property or meet tenants face to face.
- [00:21]
Ashley Kerr
We'll tackle these real world investment dilemmas and give you actionable advice you can implement today. My name's Ashley Kerr.
- [00:30]
Tony J. Robinson
And I'm Tony J. Robinson.
- [00:31]
Ashley Kerr
And welcome to the Real Estate Rookie podcast. Okay, so today for our first question we pulled it from the BiggerPockets forums. You can head over to BiggerPockets.com and hop into the forums to ask your question or to actually answer some. So this question says I am trying to figure out how many markets I should focus focus on at once. From what I see, there are people who invest in different real estate markets all over the country. I don't want to focus on one market and not be able to score the right property for who knows how long and then end up missing out on other locations. It seems just being long distant landlord is very popular as well. What if I was to focus on properties in somewhere between 2 to 5 markets? Seems like I contacted somewhere between 1 to 3 real estate agents in each market. I could end up finding something good for sure. So basically this person is asking, they don't think they should focus on one market and they should focus on more to increase their chances of getting a deal. Is that how you're reading it too, Tony?
- [01:43]
Tony J. Robinson
Yeah, it seems like what's kind of the, the sweet spot for the number of sales, cities and markets to focus on to find the deal.
- [01:48]
Ashley Kerr
Yeah, so I'm still, I'm gonna say that I'm still a firm believer in one market. I would say in that market look at one to three neighborhoods. But I'm still staying focused in one market. As a new investor, I think it.
- [02:06]
Tony J. Robinson
For me probably depends on a few factors. I think part of it is, well, how many opportunities are there for you to analyze and make offers that fit your buy box in that market? You know, if you know, say that your buy box is super tight. Like we've interviewed people who only focus on condos, we've interviewed people that only want to buy properties that they can restructure the layout to turn a three bedroom into an eight bedroom and do co living. We have people who only focus on starter homes, right? Three bedrooms, you know, one to two bathrooms, under 2,000 square feet. So I think the tighter your buy box is, maybe the more difficult it'll be to find a high enough volume of deals in your market to actually analyze and submit offers. So I think working into it, like working at it from the other way, I think the first question is how, how quickly do you want to get your first deal? And if you're fine with the taking 12 months, whatever, because there's just not a lot of volume in your market, then, yeah, stick with that one market. If you want to get your first deal in the next 90 days, then maybe we need to increase the volume. But if you need to, you know, submit a hundred offers to actually close in that first deal, where you got to ask yourself, how many offers can I submit in this, in this market? And if you can only do one offer a week, you know, it's going to take you two years to find your first deal if you got to make 100 offers. So I would probably back into it that way and say, okay, how many offers do I want to get out on a, on a weekly basis? And can I actually do that with one market? Okay. If not, can I do it with two? Okay. If not, can I do it with three? Anything above, like three to five is probably a little bit overkill, but I would think that's maybe a sweet spot if your buy box is tight enough. Now, if, if there's just a lot of options in your market, then yeah, I agree with Ashley. I think there's a lot of value in going just super deep. And when I first started, not only was I looking at one city, but I was really looking at like one zip code within that city. But it was a big enough city, there were enough properties for sale where I could just focus on that one super tight niche market and get good at it. But today, inventory is a little bit more constrained. I think there's a little less supply to, to look at. So maybe opening that, that search parameter a little bit could be beneficial for you.
- [04:14]
Ashley Kerr
Okay, so, Tony, I actually just pulled up the bigger Pockets markets finder, and in here you can enter a city. So I put it in Buffalo, New York. But within the city of Buffalo, not even including the suburbs, there's different neighborhoods with different zip codes. So you can actually narrow down by zip code in an actual city to get more specific detail on that neighborhood and kind of go through the numbers there. So maybe instead of looking at property type first or you know what your strategy is. Maybe looking at the numbers on the actual market to see if maybe there's a way to make a neighborhood more attractive than the other, that it's worth focusing on those three neighborhoods within a market instead of having to go and analyze, you know, Cleveland, Buffalo, Columbus, Ohio, and figuring out, you know, trying to look through all those, you're having three different agents, you're having to build basically three different teams. So maybe instead niching down and really focusing on those neighborhoods, but you can go to biggerpockets.com/market finder and you can use this tool to actually get all the data you need to successfully analyze a market and to really narrow it down by zip code instead of just the city as a whole. Because even just looking at the map right now, I can tell you that, you know, some of this data, you're looking at the city as a whole. But if you niche down in some of these areas, these numbers actually turn out to be way better than what they're showing here. And in some areas the, the affordability is way worse than what it's showing here too.
- [05:57]
Tony J. Robinson
Yeah, obviously I love using the tools that BP's built out to kind of help with this. I think the point that I really want to drive home here is that as the volume in a market goes up or goes down, it's going to force you to either be more or less flexible with your strategy and with your buy box. Like for example, Ashley can, can look in her market because she can tackle different deals of different types. She can do a single family flip, she can do small multifamily, she can do a bur, she can do just a turnkey rental, she bought a liquor store. Like she's kind of dabbled in a lot of different strategies. Whereas me, when I was first starting, I was really just looking for three bedroom, two bath, you know, 1100 square foot single family homes. So I wanted to make sure that I had a really, really tight buy box and that's all that I was looking for. So as the volume goes up or down, more volume means you can be a little bit more strict with your buy box. Less volume means you either have to open up and be a little bit more flexible or go to other potential markets. So either way, I think there's no right or wrong answer here. It's just what, what makes you more comfortable as a, as a rookie investor.
- [06:58]
Ashley Kerr
We're going to take a short break and we'll be back with our second question.
- [07:01]
Advertisement Speaker
Want to invest in real estate but don't have the time or know the best local markets. Rent to Retirement has you covered. Look, here's the deal. They've helped thousands of investors just like you find turnkey homes across the best US Markets. And best of all, they do all the heavy lifting for you. With over 250 five star reviews on BiggerPock rent, retirement experts help you build strategies to retire early through real estate. And right now, Rent to Retirement offers some amazing incentives on turnkey new construction properties. Like up to $30,000 off of new build prices, 0% down loan options, 3.99% interest rates. So guys don't miss out. These deals won't last. Text REI to 33777 or visit biggerpockets.com retirement start investing in top cash flow markets today.
- [07:44]
Running out of gas? That's a problem that's avoidable. Owning a rental property without proper landlord insurance? That's a problem that's equally avoidable. Steadily Landlord insurance can help. Steadily offers fast quotes on property and liability coverages that are tailor made for the real estate investor community. And they can even compare pricing from multiple carriers. For landlords looking to weigh their different options, you can rest easy knowing your investments are secure with Steadily. They're available online 247 and they can start coverage as fast as the next day. Visit biggerpockets.comlandlordinsurance to secure your investments with Steadily Steadily Insurance Steadily Insurance Founded by Landlords for landlords. If you're in the landlord game, then you know the importance of solid tenant screening. That's where RentReady steps in. Now RentReady has a new feature, Proof of Income Verification. And get this, with Plaid certified reports, you'll see everything from income summaries to total earnings by month. So say goodbye to those gut check moments and say hello to confidence in renting with RentReady. RentReady is actually included in your pro membership at BiggerPockets. If you're not a pro, they're offering a six month plan for $1. You can't beat that. Visit rentready.com that's R N T R E D I dot com and use the code BP Investor. That's BP like BiggerPockets Investor to get six months of rent ready for just $1.
- [09:05]
Ashley Kerr
Okay, welcome back from our short break. Tony, what is our second question today from the Bigger Pockets forums?
- [09:12]
Tony J. Robinson
All right, so second question here says I'm looking for the smartest way to invest $25,000,000 to generate the best returns and scale my portfolio as quickly as possible. My goal is to make the most Strategic move that maximizes profit while managing risk effectively. Just pausing on the question here. I would say that's almost everybody's goal, right? Is to get the best returns while, while reducing risk. But going back to the question here, it says if you had $25,000 to invest, what would be the best option? Would you put it toward a down payment on a long term rental? Brrrr. House hacking partnerships or another strategy? What type of real estate would you target? Single family, multifamily, commercial, etc. Any key factors to consider or lessons learned when trying to scale efficiently? Appreciate any and all insights. A lot to unpack here.
- [10:02]
Ashley Kerr
Yeah, I think the first thing we have to bring up is if you have 25,000 to invest, does that include your reserves? So is that 25,000, that's all you have? Or is the 25,000 you want to use to invest but you have a separate amount of money as reserves? That should be. I think the first clarification is that you need to have reserves in place.
- [10:28]
Tony J. Robinson
Couldn't agree with you more. You definitely don't want to go into your first deal and have nothing left over, you know, because it'll, it'll be your luck that the day after you close you need a new roof, you know, or the H Vac goes out. So I, I think a couple things here, right? I mean we don't know all the, the nuances of this person's like personal life or kind of where they're at or, or what they're comfortable with, but I'd say for, or, or even what market they're in. But I'd say in my mind with this level of capital in say a median price to market, right? So somewhere around, I think the median home price is like somewhere around $400,000 right now, right? So if we talk median home price market, 400 grand for a typical home, home, typical property, I would probably go the, the route of house hacking, right? Because at, at that purchase price, 400,000 bucks, three and a half percent down, what is that, 13, $14,000 somewhere in that ballpark you could still cover your down payment, cover your closing costs and have a little bit of money left over. And if you could buy a property where either it's a large, you know, maybe it's a five bedroom, you're living in one room and, and renting out the other five. Or maybe you get a small multifamily, you live in one unit, rent out the others and rent out the room that's in your unit. In my mind, that is the best way to reduce your living expenses, generate cash flow and reduce your cost of acquisition. So a lot of what you're talking about here scale maximizing profit, reducing risk. You're checking all those boxes by going into a house hack first. That's my thought. What do you think, Ash?
- [11:59]
Ashley Kerr
Yeah, I mean I'm glad they put house hacking as an option of something they were to consider consider because that is always my go to is the number one thing if you can do a house hack, that is the one of the greatest ways in my opinion to get started because you're covering your, you know, you're lowering your cost of living. If you're going to buy a house anyways, you're kind of mixing your primary residence with an investment property. So you have, you know, instead of making the decision of do I buy myself a primary home or do I, you know, buy a rental property? You're able to kind of merge those two paths together. So I always like the idea of house hacking because you're able to get the best financing usually unless you are getting creative with your financing and using help seller financing or something like that where you can maybe get a 2% interest rate. But as far as, you know, going through a bank, this is the best lending option you will get if it's your primary residence. But I do encourage people when they're building out their buy box and they are going to do house hacking. Look at types of properties that are available in your area when you're building out that buy box. So are eight ADUs, you know, something that are popular in your area where you can actually, you know, live in the main house and rent out the ADU or vice versa. You live in the smaller unit and rent out the the bigger house is there, are there basements where you could convert the basement into another, rent another property, put in the kitchen, put in a bathroom, can you rent by the room? Is there a small cabin on the property that you could rent out? So try to get creative and not just strict to the confines of the traditional house hacking where you're buying a rental and renting out the room or you're buying a small multifamily and renting out another unit. What are the other options that are available? And one of the things too without, you know, are there other ways to bring income to your property without actually renting to a tenant too? So this could be buying land and you could, you know, take that 25000 buy a lot, a wooded lot. You could take the timber value from that lot, you could sell some of the, the timber, recoup some of your startup costs, and then you could also sell the lot as a vacant lot for somebody to come in and build a home on. So think about things like that. Is there a garage, is there a barn, is there a shed that you can charge people to store their boats, their RVs, things like that? So not, it's not always specific to renting to a tenant when we talk house hacking. But think about other ways you can generate income off of a Property using that 25,000 to bus.
- [14:50]
Tony J. Robinson
Yeah, you make so many great points, Ashley, is that there, you know, we should be thinking creatively. I, but you know, just going back to this part about like managing the risk, I think different strategies carry different levels of risk for different people. And what is a, a potentially risky strategy for me could be the easiest strategy for Ashley and vice versa. So I, I think as you explore these different options, you have to look at yourself, you have to look at your own skills, your own abilities, your own tendencies and ask yourself, where am I best suited or what strategy is best suited for who I am as a person? And if you're someone who is terrible with project management, if you're someone who doesn't do well with kind of, you know, navigating conflict with contractors, if you're someone who, you know, can't keep a budget, whatever it may be, right. Then maybe don't go into the strategies that focus on those things. Right. Don't go burr, right. Because you're going to set yourself up for failure there and maybe you need to go buy a turnkey property. So I think doing a little bit of self assessment is really important to also help reduce that risk because you are uniquely qualified to do something and I think you've got to identify what that is.
- [16:06]
Ashley Kerr
You know, you. Tony always talks about the NACA loan, but there's also the USDA loan too, and this is for rural areas to get people to purchase property, enrolled areas, and they do 0% down. So with that 0% down, you'll still have closing costs and your reserves, things like that. So that still will eat up your 25,000 in a sense, but it does give you, you know, more that you can buy because you're not having to do a down payment too. So that's also an option, but it does have to be your primary home. So it would have to be a property that you house hack. And, and I think I'm not positive on this. And you can go to usda.gov to look for sure at kind of what the rules are on it. But I think it has to be a single family home. So this would be a scenario where you're renting out by the room or you know, you're charging for storage or you know you're gonna create a hobby farm and sell goat milk and make goat cheese and soaps and stuff like that off of it and get the agricultural exemption to lower your property. But that's another project product to look at too. Is the USDA loans too.
- [17:18]
Tony J. Robinson
Is that a common hobby farm where you're at, Ashley? Is goat milk and would you say goat cheeses?
- [17:26]
Ashley Kerr
I initially first thought of the, the goat soap, like soap made from goat milk, but I couldn't form the words and I was like goat cheese, which I don't even know if goat cheese, does that actually come from goat's milk? I honestly don't even know.
- [17:41]
Tony J. Robinson
I did not know that goat soap even existed. So you just educate me on something new.
- [17:45]
Ashley Kerr
Yeah, yeah. So there, there are several people that do sell that in our area. Okay, we're going to take our final ad break and while we're doing that, if you are not already subscribed to our YouTube channel, it would mean a lot to us. You can go to YouTube.comealestate rookie and subscribe. We have new video releases every Monday, Tuesday, Wednesday and Friday.
- [18:07]
Advertisement Speaker
Are current interest rates making you depressed about cash flow? What if it didn't have to be that way? Rent TO retirement has 2.99% seller financing available on turnkey properties. You heard that right. That's a seller financed 2.99% interest rate where the average cash flow is over $900 per month. They also have options where you can put as low as 5% down on multiple investment properties with no PMI. Rent to retirement is the nation's leading turnkey investment company that understands what it takes to be successful in today's dynamic real estate market. Their reputation speaks for itself. With more 5 star reviews than any other company on the BiggerPockets website, rent to Retirement offers fully turnkey properties that are newly built or renovated, leased and managed, allowing you to invest with confidence in the markets that offer the best returns. To learn more, Visit rent to retirement.com that's rent to retirement.com or text REI to 33777. Again, text REI to 33777.
- [19:15]
Running out of gas, that's a problem that's avoidable. Owning a rental property without proper landlord insurance, that's a problem that's equally avoidable. Steadily Landlord Insurance can help Steadily offers fast quotes on property and liability coverages that are tailor made for the real estate investor community, and they can even compare pricing from multiple carriers. For landlords looking to weigh their different options, you can rest easy knowing your investments are secure with Steadily. They're available online 247 and they can start coverage as fast as the next day. Visit biggerpockets.comlandlordinsurance to secure your investments with Steadily Insurance. Steadily Insurance Founded by Landlords for landlords listeners, I'm telling you now, it's not every day you find a game changer like Rent Ready. They're not just stopping with just tenant screening. They've rolled out proof of income verification. Let Rent Ready handle the heavy lifting with automatic checks on financial stability and earnings. Plus with Plaid certified reports, you'll have all the info you need right at your fingertips. Rent Ready is actually included in your Pro membership at BiggerPockets, but if you're not a pro, they're offering a six month plan for just a dollar. How great is that? So visit rentready.com that's R E N T R-E D I.com and use the code BPInvestor. That's BP like BiggerPockets Investor to get six months of rent ready for a dollar.
- [20:28]
Nobody does selling better than Shopify Shopify is the home of the number one checkout on the planet and the not so secret secret with shop pay that boosts conversions up, meaning way less carts go abandoned and way more sales going through. So if you're into growing your business, your commerce platform better be ready to sell wherever your customers are scrolling or strolling on the web, in your store, in their feed, and everywhere in between. Businesses that sell more sell on Shopify. Upgrade your business and get the same checkout that Skims uses. Sign up for your $1 per month trial period for 3 months at shopify.com westwood1 all lowercase go to shopify.com westw westwood1 to upgrade your selling today. Shopify.com westwood1 you just realized your business.
- [21:18]
Ashley Kerr
Needed to hire someone yesterday. How can you find amazing candidates? Fast? Easy. Just use Indeed when it comes to hiring, Indeed is all you need. That means you can stop struggling to get your job noticed on other job sites. Indeed, sponsored job posts help you stand out and hire the right people quickly. Your job post jumps straight to the top of the page where your ideal candidates are looking. And it works. Sponsored jobs on indeed get 45% more applications than non sponsored posts. The best part no monthly subscriptions or long term contracts. You only pay for results. And speaking of results in the minute, I've been talking to you. 23 people just got hired through Indeed Worldwide. There's no need to wait any longer. Speed up your hiring right now with Indeed and listeners of the show will get a $75 sponsored job credit. To get your jobs more visibility at indeed.com rookie, just go to indeed.com/rokee right now and support our show by saying you heard about Indeed on this podcast. That's indeed.com/Rookie. Terms and conditions apply. Hiring Indeed is all you need. Okay, let's jump back in with our last question today. So this question is about co signers. For a lease, do you have to have co signers do the full background check slash application process? As the people who will be living in the property, we're considering some younger folks moving to our town from out of state and they would need to establish jobs once they arrive. So we want to ask them to have some co signers for more payment security. But I've never done that before and would love some tips and thoughts from people who have. Thanks. Okay, well Tony, I'm going to assume you don't know a ton about this process.
- [23:07]
Tony J. Robinson
I do not. So you are the perfect person to answer this question. I. I think just before you jump in, Ashley, if you can just like even define for maybe some of our rookies who are unfamiliar with how this relationship works. But like, why would anyone even consider maybe forcing a tenant to have a co signer?
- [23:24]
Ashley Kerr
Yeah. So first of all, co signer is somebody who is pledging themselves to be responsible for your loan if you don't pledge pay. So for example, if someone goes and buys a car and they don't have credit that is good enough, their income isn't high enough, they can have somebody co sign for them and they get their little old grandma to come into the dealership with them and sign a piece of paper saying that if you don't pay, your grandma will be responsible for making the payment she's signing along with you to be financially responsible responsible. So in this situation you definitely, if you are ever co signing for someone, you should be very, very, very cautious when doing this because you will be financially liable in the situation of renting an apartment, this person said, because they didn't have jobs yet since they were relocating to the area. But this can also be if someone doesn't have a great credit score, if they don't have super high income, if they can show a co signer can fulfill that other screening requirement to get them approved for the application. So, you know, if somebody is younger, they're just starting out in life, they've never had a credit card before. They, you know, lived in a college dorm. They don't really have housing history. They may not qualify just only because they haven't had these life experiences yet, they haven't taken on any debt. So honestly, I think that's a good thing when there's no credit score because they haven't taken on any debt yet. And that's kind of becoming a rare thing. But this, you can have them bring on a co signer such as their parent, family member, whoever. And I do have the co signer to go through the full, full application process. So they're filling out the application, we're doing the screening on them because we want to make sure that they bring to the table what the other person is missing. So you'll have them do the background check, the credit check. I would say, since they're not living in the property. And that's something also to clarify during the application process. Is this co signer living in the property or not? And most oftentimes they're labeled a cosigner because they are not living in the property. They're just financially responsible that the rent is going to be paid. So go through the whole application process with this person. Also for my units, we do it for anybody that is living there that is 18 and over has to go through the application process. Plus if there is a cosigner, they go through it too. You'll also want to get, you know, verify the information they're giving. So if you know your actual tenant doesn't make enough income, you'll want the co signer to bring proof of income. You'll want to verify their income. And you know, a lot of property management software actually has that integrated where they'll do the income verification for you through the person's employer. But when you co sign, make sure you get, you know, think about if this person didn't pay, what would happen? You would take them to court to evict them and then you would place a judgment on them for the amount that was owed. So you want to have the information. So I usually get a copy of the driver's license of each tenant along with the co signers so that if you do end up going to court, your attorney is filing papers, the filing the judgment in the names of the tenants and also the co signer because they signed on the lease. That they'd be financially responsible. The more people who are financially responsible, the more likely you will get paid. So I had this situation where there was somebody that I was running to do. I, I, she was in her 20s or 30s, but it was her first time living on her own. And her mom kind of helped her through the application process. And they had seen the apartment together and the mom was co signing because the daughter didn't have a ton of income and she didn't really have any credit history. So the mom co signed, so things went fine and then the daughter stopped paying. And so I contacted the mom and I said, we have not received payment this month. And so the mom talked to the daughter. Whatever happens, we received payment. Well, it happened again. And so we start the eviction process. So I call the mom and I say, just so you know, we haven't received payment. Now we're going on to the second month, haven't received payment. We've started the eviction process. But what I'm willing to do, and this is called cash for keys, I'm willing to give you, I don't remember the amount, let's just say $400. I'm willing to give you $400 if your daughter moves out by this date. And you know, just kindly reminding you know, you're on the lease too. The eviction papers have you listed on this, but I will meet you at this date on this time and if your daughter is all moved out and you can hand me the keys, I will give you $400. And that is what we did. That co signer helped me get that person out of the apartment and I handed $400 to the mom the day that the daughter got out of the apartment and I was handed the keys. So there are benefits to having multiple people that can, you know, maybe somebody else. There's one person on the lease, that's the problem. The other person or people could actually persuade them to actually move out of the property or to pay their rent because they don't want to end up in a position where they have a judgment against them.
- [29:04]
Tony J. Robinson
Actually, let me ask, is the, is the paperwork different for the co signer than it is for the actual applicant?
- [29:09]
Ashley Kerr
No, we do the same process. There's just at the top of the application. So ours is all done through property management software, the screening process. So like the application, they would just select co signer and we're able to link their application. So when that person that's going to live there fills out their application, they actually send a Unique link to the person they want to be the co signer. The cosigner clicks on that and it takes them to the application process and it will automatically link their accounts together and say this person said they're the applicant, this person said they're the co signer.
- [29:43]
Tony J. Robinson
I don't know if you even have this data but like, do you know, like what percentage of your tenants right now have cosigners? Like if you were to ballpark guess, very, very low. Is that what Ricky should maybe strive for? Like if you know, aside from, hey, young college town, a bunch of kids doing this for the first time. But say you're just in a normal middle income type city in the United States. Is it almost a red flag if a lot of your tenants are coming to you and they need that co signer?
- [30:07]
Ashley Kerr
I don't think I, I don't think it's a red flag if a lot of them are coming to you. I think that says more about what class your property is. So like, and I guess it's why they're not qualifying and why they need a cosigner. So if it's debt to income or like income to rent ratio, so like say you've set your standard that they need to make five times what the rental income is, probably a lot of people are going to need co signers because you're requiring them to have a really high income compared to what the, the actual rent is. So in that situation that's you're probably are going to get a lot of people that bring a cosigner because you have that high expectation. And I'm not saying to change it, but if you're getting into the scenario where a lot of people have just a ton of debt, their credit score is not great and they're all bringing co signers, then you're probably more likely in a C class or D class area where it's lower income people coming into those areas anyways and that's kind of the standard, the norm in those classes of area. So I guess it's, it's hard to directly answer your question that way because I think it tells you more about what type of property you're actually renting out and what your requirements are.
- [31:30]
Tony J. Robinson
But I think you also made a good point. It's like, you know, don't just, if someone doesn't get approved for your unit, don't just jump into, hey, go get a cosigner. I think part of it is like understanding why they didn't get approved in the first place and just keeping track of that. And if it is what we said, where it's just a lot of younger, you know, new working professionals that haven't built up that history, that's one thing. But if it's someone who's, you know, in their 50s and they've lived enough life to kind of be in that position, but they've, you know, filed bankruptcy seven times, then maybe that's something to be more concerned about. So I think it's just helpful for Ricky to kind of hear through that thought process.
- [32:02]
Ashley Kerr
One thing too that we do list in like our because like we have our screening criteria available on our website and one of the things is that we do a manual review for medical debt and student loan debt. So like really heavy on the medical debt that we don't take that into an account. So like, especially if people have judgments against them for medical debt, we do not factor that in. We just kind of like, especially if everything else is great, we just assume they're just not paying that medical debt because there's not really a way to collect it. Okay, you guys. Well, thank you so much for joining us today for this episode of Rookie. Reply. If you have questions, you can send them into our DMS @BiggerPockets rookie on Instagram or you can go to the BiggerPockets forums and pop your question into there. I'm Ashley and he's Tony. We have started a new newsletter if you guys haven't heard. And you can go to Bigger Pockets newsletter and put a little check mark next to Rookie newsletter. Submit your email and hit subscribe and you can get subscribed to our new email. Our primary goal for this newsletter is to have some fun with you guys, but also to give you actionable items and resources that you're able to use as a rookie investor along with keeping you up to date, what's going on in the news and different interesting stories happening across the world that relate to real estate investing. So make sure you guys check that out. That's biggerpockets.com newsletter. Thank you so much for joining us and we'll see you guys next time.
- [33:43]
Advertisement Speaker
Are current interest rates making you depressed about cash flow? What if it didn't have to be that way? Rent TO retirement has 2.99% seller financing available on turnkey properties. You heard that right, That's a seller financed 2.99% interest rate where the average cash flow is over $900 per month. They also have options where you can put as low as 5% down on multiple investment properties. With no PMI, rent to retirement is the nation's leading turnkey investment company that understands what it takes to be successful in today's dynamic real estate market. Their reputation speaks for itself. With more 5 star reviews than any other company on the BiggerPockets website, rent to Retirement offers fully turnkey properties that are newly built or renovated, leased and managed, allowing you to invest with confidence in the markets that offer the best returns. To learn more, visit renttoretirement.com that's renttorment.com or text REI to 33777. Again, text REI to 33777.