Can rookies find rental properties that cash flow in today’s housing market? Yes! But you may need to get creative. This investor made the numbers work by discovering extra income streams in his own backyard, making a cross-country move, and using artificial intelligence (AI) to find better deals!

Welcome back to the Real Estate Rookie podcast! Joe Schmitt has built a modest real estate portfolio of four properties in four years, but the journey hasn’t been easy. His very first deal saw him tackling home renovations and building a second rental unit on his property, an effort that allowed him to force appreciation and create more cash flow. The only problem? Joe was quickly being priced out of his Los Angeles market. So, he took his operation to the East Coast instead!

There are many levers you can pull to make a deal work for you, and in today’s episode, you’re going to hear about all the different investing strategies Joe used to his advantage—from building accessory dwelling units (ADUs) and investing out-of-state to using Chat GPT to negotiate a $40,000 discount on one deal!

In This Episode We Cover:

How Joe built his portfolio of four rental properties in four years

Boosting your home equity and cash flow with accessory dwelling units (ADUs)

The benefits of visiting a new real estate market before investing in it

Using ChatGPT to research property data, analyze deals, and negotiate with sellers

When to refinance your home (and when to keep your current rate instead!)

What you must know before getting a home equity line of credit (HELOC)

Private mortgage insurance (PMI) explained and how to avoid (or eliminate!) it

And So Much More!

Links from the Show

Ashley's BiggerPockets Profile

Tony's BiggerPokckets Profile

Join BiggerPockets for FREE

Buy “The Book on Negotiating Real Estate”

Find an Investor-Friendly Agent in Your Area

See Ashley and Tony at BPCON2024 in Cancun!

Investing in Real Estate Out of State: What You Need to Know

Connect with Joe

(00:00) Intro

(00:44) Joe’s FIRST Deal

(07:01) Building the ADU

(16:17) Moving to Nashville!

(26:47) Saving $40K by Using AI?!

(32:48) 3 Tips for New Investors

(35:33) Connect with Joe!

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-446

Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com.

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Elisa Stampf, Co-Founder and CEO of Insure Equality - PIR Ep 270