How to Buy Cash-Flowing Rentals in 2026 (Despite High Rates) (Rookie Reply)
Summary
This article, from the BiggerPockets blog, discusses the challenges and opportunities of real estate investing in 2026, especially regarding cash flow. It emphasizes the importance of market research, strategy, and understanding tax benefits to succeed despite high interest rates. It also explores job options to gain investing experience.
Key Insights
- •Expectations around cash flow need to be adjusted due to high interest rates. Today, annual revenue for a good deal may be closer to 15-20% of the purchase price, whereas it may have been around 30% in the past.
- •The article suggests that while cash flow can be difficult to achieve in some markets due to high interest rates, it is still possible to find cash-flowing deals by focusing on the right market, strategy, and niche. For example, a real estate investor on the East Coast is getting around $1000 per month on a duplex in a C-class neighborhood in Philadelphia.
- •Real estate offers unique benefits compared to the stock market, such as tax advantages, appreciation, and the ability to have tenants pay down your mortgage. The article suggests focusing on the benefits that benefit you.
Action Items
- ✓Consider your desired level of cash flow and find markets, strategies, and niches that align with your goals.Effort: mediumImpact: medium
- ✓Evaluate the benefits you are looking for in real estate. Consider your individual goals when evaluating a property as well as the tax benefits to determine your strategy.Effort: lowImpact: medium
Tools & Resources
- →Brandon Turner's books: The article mentions Brandon Turner's books.
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