BiggerPockets Real Estate Podcast

Why Your Small Town Is (Probably) the Best Place to Buy Rentals

Sep 16, 2024

Josh Bauerle, a real estate investor who built a portfolio of over twenty rental properties in a small Ohio town, shares his unique approach to investing. He emphasizes that small towns can be golden opportunities for real estate, revealing how he successfully used seller financing and Section 8 rentals to grow his income. Josh discusses the importance of community connections and effective property management while debunking myths around Section 8 housing. His journey from setbacks to a thriving investment career offers inspiring insights for both new and seasoned investors.

40:05

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Episode guests

Josh Bauerle

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Quick takeaways

Investing in small towns can yield substantial advantages such as strong networking opportunities and lower property acquisition costs through seller financing.

Utilizing Section 8 tenants not only stabilizes rental income but also maximizes cash flow by leveraging government support during economic fluctuations.

Deep dives

The Journey into Real Estate Investment

An investor shares his unusual journey into real estate, beginning with a disastrous first flip investment made in 2006 that turned into a 13-year hold due to market crashes. Initially inspired by his father's real estate ventures, he found himself starting his own investment career in an unfavorable market right after college. Despite financial struggles early on, his return to real estate in 2017, spurred by a successful property acquisition without using personal funds, marked his determination to learn from past mistakes and seek new opportunities in a familiar small-town setting. His story illustrates resilience in the face of initial setbacks and highlights valuable lessons learned through experience.

Leverage Cash Flow, Avoid Personal Investment

01:07

Invest in Stability: Embrace Section 8 Housing

00:52

Intro

2min

From Setbacks to Success in Real Estate

11min

Maximizing Rental Profitability Through Vacancy Reduction Strategies

5min

From CPA to Real Estate Mogul

7min

Exploring Opportunities in Columbus' Real Estate Market

5min

Investing in Section 8 Housing

8min

Fueling Motivation and Finding Your Real Estate Ally

2min

Your small town might be the best place to invest in real estate, even if it’s got only a few thousand residents. We know—everyone has told you to go to the bigger, growing cities where you can chase appreciation, but today’s guest might change your mind. He was able to scale to over twenty rental properties in just a few years, all by buying in his rural Ohio town that you’ve probably never heard of. Even better? He bought the rentals with none of his own money, AND he was cash-flowing THOUSANDS per month. So how do you do it, too?

Josh Bauerle tried to invest in real estate back in 2006. What was supposed to be a “quick flip” turned into a thirteen-year investment, which (thankfully) made a bit of money by the end. After taking a decade off from real estate investing, he got back in the game, first by buying a rental from his father and then by purchasing a twelve-unit real estate portfolio from a local friend. He then scaled FAST to a serious amount of rentals, all in a tiny town with a small population.

After that, he stumbled upon the best-kept cash flow secret in real estate investing: section 8 rentals. Today, Josh is sharing how he did it without using his own money, and how you can do it, too, whether you’re in a sizable city or a small town.

In This Episode We Cover:

Why living in a small town is a HUGE advantage for real estate investing

Seller financing 101 and how to buy rental properties without getting a traditional loan

Using other people’s money to build a rental property portfolio

Section 8 rentals, the pros and cons, and why they get you MORE rent than regular rentals

The simple way that Josh has found his off-market real estate deals with social media

And So Much More!

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