BiggerPockets Real Estate Podcast How to Invest in an Expensive Market ($500K+ Home Prices)
42 snips
Nov 21, 2025 Navigate the challenges of investing in markets where homes exceed $500K. Discover diverse strategies to maximize cash flow, including the innovative 'slow BRRRR' method. Explore value-add renovations to boost equity and find creative solutions like renting by the room. Dive into midterm rentals for steady income and learn about owner-occupied strategies that lower down payments. Finally, hear a personal investment approach that blends local flips with out-of-state rentals for a comprehensive wealth-building plan.
AI Snips
Chapters
Books
Transcript
Episode notes
Two Core Challenges In Expensive Markets
- Expensive markets pose two main challenges: high upfront capital and weaker rent-to-price ratios limiting cash flow.
- These markets can still produce wealth, but you must choose strategies that address affordability and scaling.
Use Value-Add To Create Equity
- Use value-add strategies like flipping or BRRRR to buy discounted, fixable properties and create equity.
- BRRRR reduces selling pressure by refinancing and holding, letting you time exits for better markets.
Try The Slow BRRRR Approach
- Try the "slow BRRRR": buy with tenants and renovate units only when vacancies occur to lower time and capital pressure.
- Spread renovation costs over months to preserve cash and reduce operational strain.
