3 Types of Rentals That STILL Make You Rich

What It Covers

Three real estate investors share recent property purchases ranging from $55,000 to $600,000, demonstrating profitable strategies across different markets including distressed rehabs, new construction turnkey rentals, and creative subdivision plays in expensive cities.

Key Questions Answered

• •Distressed property strategy: Purchase severely distressed properties at $55,000, invest $90,000 in renovations for $265,000 ARV, creating multiple exit options including short-term rental at $3,000 monthly or long-term rental at $1,800 monthly with significant equity cushion for beginner mistakes.
• •New construction cash flow: Buy brand new homes in growth suburbs like North Dallas at $214,000 (half the median price), negotiate builder rate buydowns below 6%, and achieve $1,825 monthly rent with minimal maintenance expenses and strong appreciation potential in path-of-progress locations.
• •Subdivision arbitrage: Purchase $600,000 properties on oversized lots in expensive markets, renovate front house for $899,000 sale, subdivide and build 2,200 square foot rear unit costing $720,000 to sell at $1,200,000, creating $300,000-$400,000 equity for 1031 exchange into fourplex.
• •Hard money to DSCR refinance: Finance distressed acquisitions with hard money loans covering 95% of purchase plus full renovation costs, complete five-month rehab, then refinance into 30-year fixed DSCR loan to extract equity while maintaining cash flow and building long-term wealth.