BiggerPockets Real Estate Podcast

Expert Investor Shares How He Made $100K with Just One Property

Nov 25, 2024

David Lecko, CEO of DealMachine, shares how he turned a single property investment into a $100,000 success story. He emphasizes the importance of dedicating time to find deals and using the BRRRR method to maximize returns. Lecko also discusses his shift to managing properties remotely after relocating, highlighting strategies for self-management, even from a distance. He reveals the secrets of navigating tax-delinquent properties and achieving financial freedom through a well-informed investment strategy, particularly in the Indianapolis market.

39:25

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Episode guests

David Lecko

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Episode notes

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Quick takeaways

David Lecko highlights the effectiveness of the BRRRR method in creating significant equity through strategic renovations and refinancing.

Identifying motivated sellers via tax delinquent lists allows investors to uncover valuable deals and negotiate advantageous purchase prices.

Deep dives

Successful Use of the BRRRR Method

The BRRRR method—buy, renovate, rent, refinance, repeat—has proven effective for real estate investors, as illustrated by David's personal experience. By purchasing properties at low prices, renovating them, and then refinancing at a higher appraised value, investors can significantly enhance their equity. For example, David acquired a property for $160,000, invested an additional $125,000 in renovations, and ended up with an appraisal of $425,000, allowing him to pull out substantial equity. This method highlights the viability of finding profitable deals through careful market analysis and strategic financing.

Intro

3min

Navigating Tax Delinquency to Unlock Real Estate Opportunities

3min

Strategic Outreach for Property Deals

2min

Navigating Property Renovations and Appraisals

3min

Analyzing Profitable Real Estate Investments

4min

Strategic Real Estate Investing in Indianapolis

9min

Navigating Property Management Relationships and Sponsorship Insights

5min

Navigating Real Estate in High Interest Times

9min

Would you spend thirty hours finding a deal if it could make you over $100,000? Of course you would! And that’s exactly what David Lecko, CEO of DealMachine, suggests you do to find better real estate deals in 2025. After hundreds of calls and mailers, an extensive rehab, and two appraisals, he walked into six-figure equity on a single rental property!

Welcome back to the BiggerPockets Real Estate podcast! David has achieved financial freedom by building a real estate portfolio of nineteen cash-flowing, appreciating properties. His big secret? Buying the same property over and over in a market he knows inside out—Indianapolis, Indiana. He’ll scour tax-delinquent lists for distressed properties that fit his buy box and use the BRRRR method (buy, rehab, rent, refinance, repeat) to snowball into his next deal.

But now that David has moved to Austin, Texas, he faces a brand-new challenge—investing in real estate out of state. While most investors would hire a property manager to oversee their properties, David self-manages from hundreds of miles away and employs an assistant to be his eyes and ears. Tune in as David shares all of the details on his latest deal and the strategies investors can use to gain a competitive edge in 2025!

In This Episode We Cover:

The strategy David used to make $100,000 on ONE real estate deal

How to self-manage your rental properties (from hundreds of miles away)

Why the BRRRR method (buy, rehab, rent, refinance, repeat) still works today

How to scale faster and make higher returns by staying within your buy box

The midwestern markets that allow you to earn cash flow and appreciation

Why you shouldn’t wait for interest rates to drop to buy your next property

And So Much More!

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