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Ashley Kerr

3episodes
1podcast

Featured On 1 Podcast

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3 episodes

AI Summary

→ WHAT IT COVERS BiggerPockets hosts Dave Meyer, Ashley Kerr, and Henry Washington analyze nine rental property markets for 2026, evaluating median prices, rent-to-price ratios, job growth, and economic fundamentals to identify cash flow opportunities. → KEY INSIGHTS - **Hattiesburg, Mississippi fundamentals:** Median home price $192,000 with $1,500 monthly rent creates 0.76 rent-to-price ratio and 6% vacancy rate, enabling immediate cash flow from on-market purchases in landlord-friendly college town with healthcare employment base. - **Hartford, Connecticut positioning:** Median $320,000 homes with $2,000 rents between New York City and Boston offer Northeast cash flow potential through small multifamily properties, benefiting from insurance industry jobs and hybrid workers avoiding million-dollar metro prices. - **Knoxville, Tennessee multifamily advantage:** While citywide rent-to-price ratio sits at 0.60, small multifamily properties achieve 0.75 ratio at $300,000 median price, providing year-one cash flow with 1.1% population growth and University of Tennessee employment stability. - **Market selection methodology:** Prioritize rent-to-price ratios above 0.65, median home prices under $300,000, vacancy rates below 10%, and cities investing in downtown revitalization projects while tracking major employer expansions like FedEx logistics facilities or Panasonic battery plants. → NOTABLE MOMENT Henry reveals Peoria, Illinois offers $167,000 median homes with $1,260 monthly rents creating 0.75 rent-to-price ratio, supported by Caterpillar's 12,000 employees and OSF Healthcare's 14,000 regional workers in 400,000-population metro area. 💼 SPONSORS [{"name": "ReSimply", "url": "https://resimply.com/biggerpockets"}, {"name": "Gemini Credit Card", "url": "https://gemini.com/card"}, {"name": "Steadily", "url": "https://biggerpockets.com/landlordinsurance"}, {"name": "PPR Capital Management", "url": "https://biggerpockets.com/ppr"}] 🏷️ Rental Market Analysis, Cash Flow Investing, Small Multifamily, Geographic Arbitrage

BiggerPockets Real Estate Podcast

How to Calculate Cash Flow on a Rental Property

BiggerPockets Real Estate Podcast
34 minCo-host of BiggerPockets Real Estate Rookie podcast

AI Summary

→ WHAT IT COVERS Dave Meyer and Ashley Kerr demonstrate proper cash flow calculation for rental properties using a real Western Michigan duplex example, covering fixed expenses, variable costs, vacancy reserves, and determining acceptable return thresholds. → KEY INSIGHTS - **Variable expense percentages:** Allocate 5-10% of rental income each for vacancy, repairs/maintenance, and CapEx based on property age and neighborhood class. Older properties in C-class areas require higher percentages than new A-class construction properties. - **Vacancy cost calculation:** One month of vacancy per year equals 12% of annual revenue loss. Always spread this cost across all twelve months in underwriting rather than treating it as occasional expense to avoid overestimating cash flow. - **Purchase price negotiation impact:** Reducing purchase price from $350,000 to $300,000 on the example duplex increased cash-on-cash return from 4% to 7% and annualized return from 8% to 16%, demonstrating negotiation's outsized impact on returns. - **Climate-specific expenses:** Cold weather markets require dedicated line items for snowplow removal, salt, and shovels as fixed expenses. These costs significantly impact cash flow but are frequently overlooked by new investors in northern climates. → NOTABLE MOMENT Meyer reveals his investment philosophy shifted from optimistic projections to assuming worst-case scenarios. He now underwrites deals expecting everything to go wrong, only proceeding if returns remain acceptable under those conservative assumptions, treating any upside as bonus. 💼 SPONSORS [{"name": "Fundrise Flagship Fund", "url": "fundrise.com/pockets"}, {"name": "Rent to Retirement", "url": "biggerpockets.com/retirement"}, {"name": "Steadily Insurance", "url": "biggerpockets.com/landlordinsurance"}, {"name": "Proper Insurance", "url": "properinsurance.com/biggerpockets"}, {"name": "Belay", "url": null}] 🏷️ Cash Flow Analysis, Rental Property Underwriting, Real Estate Investing, Multifamily Properties

AI Summary

→ WHAT IT COVERS Luke Tetreault shares how he scaled from zero to 35 rental units and 13 flips in two years while working full-time as a welder, generating $8,000 monthly cash flow through creative financing and unconventional deal sourcing. → KEY INSIGHTS - **Facebook Marketplace sourcing:** Luke found multiple profitable deals on Facebook Marketplace and Craigslist in small upstate New York markets, buying his first property sight unseen for $65,000 after his fiancée walked it, then refinancing at $135,000 after $20,000 rehab to pull all capital back out. - **Country club networking:** Joining a local country club for $3,500 annually connected Luke with private money lenders offering 10-12% interest rates. His golf skills helped build relationships with contractors, roofers, and investors who now fund his deals without requiring equity partnerships or bank financing. - **Short-term rental pivot:** Converting an underperforming long-term rental from $40 monthly cash flow to $1,000 monthly as an Airbnb required only $5,000 in furnishings, delivering a 230% cash-on-cash return. This demonstrates higher returns from optimizing existing properties versus acquiring new ones. - **Creative mobile home acquisition:** Luke acquired an 18-unit mobile home park with zero money down by assuming existing debt and negotiating deferred payments for one year. The lender added $50,000 to the note for renovations, allowing Luke to get paid at closing while taking over a distressed asset. → NOTABLE MOMENT Luke negotiated a mobile home park deal where the distressed seller received nothing at closing while the lender gave Luke an extra $50,000 added to the assumed debt for renovations, essentially paying him to take over the property. 💼 SPONSORS [{"name": "Baselane", "url": "baselane.com/bp"}, {"name": "SimpliSafe", "url": "simplysafe.com/host"}, {"name": "Rent Ready", "url": "rentready.com"}, {"name": "Pipedrive", "url": "pipedrive.com/bp"}, {"name": "Equity Trust", "url": "trustetc.com/bp"}, {"name": "Equity 1031 Exchange", "url": "getequity1031.com/bp"}] 🏷️ BRRRR Strategy, Private Money Lending, Creative Financing, Short-Term Rentals

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