BiggerPockets Real Estate Podcast

The Ultimate Underrated Rental Property of 2025 (for Small Investors)

Mar 26, 2025

Brian Burke, a seasoned real estate investor with 30 years of experience, discusses the hidden gems of small multifamily properties. He reveals why these 5 to 25 unit buildings are becoming the go-to for investors tired of larger complexes. The conversation dives into current market conditions, emphasizing the limited competition and low prices available right now. Burke also shares tips on analyzing these properties for passive income and highlights the crucial timeline for securing these investments before prices rise.

36:57

Episode guests

Brian Burke

AI Summary

AI Chapters

Episode notes

Podcast summary created with Snipd AI

Quick takeaways

Small multifamily properties, ranging from five to 25 units, offer greater income potential and easier management compared to larger and single-family rentals.

Current market conditions present a unique opportunity for investors to acquire undervalued small multifamily properties before prices rebound as economic indicators improve.

Deep dives

The Sweet Spot in Real Estate Investing

Properties with 5 to 25 units are identified as an ideal investment opportunity within the multifamily real estate market. This segment offers an imperfect market characterized by competition from smaller, inexperienced landlords, which can present opportunities for more seasoned investors. Unlike larger multifamily buildings that are more efficiently managed by professionals, the smaller multifamily properties often belong to 'mom-and-pop' landlords who may face various life circumstances leading to motivated sales. This creates potential for investors to find attractive deals that are not readily available in the highly competitive larger property segment.

Intro

2min

Investing in Small Multifamily Properties

4min

Investing in Multifamily Properties

6min

Navigating Real Estate Market Dynamics

9min

Navigating Underwriting and Management for Multi-Family Properties

5min

Navigating Commercial Real Estate Financing

10min

What’s the best rental property for the average investor? It’s not a single-family rental, it’s not a large apartment building, it’s not even a duplex or a triplex—it’s a “sweet spot” small multifamily. These investment properties, ranging from five to 25 units, make more money, are easier to manage, and help you scale faster to achieve financial freedom. Even large multifamily investing experts like Brian Burke are ditching the huge apartment complexes to buy these.

But what makes these small multifamily investment properties so much better than their bigger and smaller counterparts? We’re discussing the massive investing opportunities in 2025 for these properties with Brian today and how new investors and those looking for a manageable portfolio can leverage these properties to reach financial freedom.

These types of properties are still experiencing low prices with limited competition, which means that if you know about them, you already have an advantage. How long do we have until multifamily prices rebound and these investments become out of reach for regular investors? How do you analyze a small multifamily property to ensure it makes you monthly passive income? Brian shares his wisdom and gives an exact timeline for when it may be too late to buy.

In This Episode We Cover:

The rental property “sweet spot” for more income and fewer headaches

Why it’s easier to own multifamily than single-family homes

The multifamily real estate crash and why prices are LOW right now

How to analyze small multifamily before you buy and which expenses most new investors forget

What makes a “good” small multifamily real estate deal in 2025

And So Much More!

Links from the Show

Join BiggerPockets for FREE

Let Us Know What You Thought of the Show!

Ask Your Question on the BiggerPockets Forums

BiggerPockets YouTube