January 27, 2025 • 5 mins
Get ready to explore the captivating world of real estate investing in this eye-opening episode. Join us as we take a deep dive into the contrasting paths of low-income and high-end rentals, uncovering the unique challenges and rewards of each. Discover the different tenant expectations, from basic needs and reliability in low-income rentals to a luxurious lifestyle and amenities in high-end properties. We'll also explore the financial implications for landlords, the maintenance challenges they face, and the impact their choices have on communities. Don't miss this comprehensive look at the diverse landscapes of real estate investing, featuring insights from industry experts and real-life examples.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
All right, so you want to get into real estate,
right?
Maybe you're looking at rentals, yeah, and a big question comes
up pretty quickly, like wheredo I even start?
Speaker 2 (00:08):
Yeah.
Speaker 1 (00:08):
Like low income rentals, or should I go high end
Totally?
And those are two prettydifferent worlds.
Speaker 2 (00:13):
Completely different.
Speaker 1 (00:14):
So today we're going to dive into this.
Speaker 2 (00:17):
Love it.
Speaker 1 (00:17):
Like what are the real, like on the ground
differences.
Speaker 2 (00:20):
Yeah.
Speaker 1 (00:26):
Between these two approaches to being a landlord,
you got it One thing that likejumps out at me right away is
just tenant expectations.
Oh yeah, you know you'redealing with people who just
have different needs and wants,for sure, out of their rental.
Speaker 2 (00:37):
Absolutely.
I mean, you're talking aboutdifferent lifestyles, different
priorities, like in a low incomerental.
Yeah, you know the tenantsreally focused on the basics is
it safe, is it clean, does thestuff work?
The stove the essentials, yeah,exactly you know they need a
place that's reliable andaffordable makes sense.
Now you go to a high-end placeokay and it's a totally
(00:59):
different story all right.
Speaker 1 (01:00):
So what are we talking about here?
Speaker 2 (01:01):
I think like a luxury high rise.
You know rooftop gardens.
Speaker 1 (01:06):
Wow.
Speaker 2 (01:07):
Pet spas.
Speaker 1 (01:08):
Pet spas.
Speaker 2 (01:09):
Smart home.
Speaker 1 (01:10):
So like an experience .
Speaker 2 (01:12):
A lifestyle.
Speaker 1 (01:13):
Yeah, they're paying for that lifestyle.
Speaker 2 (01:14):
Okay, so that's interesting.
Speaker 1 (01:16):
Yeah.
Speaker 2 (01:17):
So how does that like translate to your bottom line
though?
Speaker 1 (01:20):
Right.
Speaker 2 (01:20):
As a landlord, yeah, so let's talk about the money.
Speaker 1 (01:21):
Okay.
R Right as a landlord yeah.
So let's talk about the money.
Ok.
Rental income and like howstable is that income?
Right, low income areas youmight see lower rents per unit,
ok, but there's often morestability OK, especially when
you factor in things likegovernment assistance programs.
Right, you know Section 8.
Speaker 2 (01:40):
OK, so Section 8, that's where the government
helps out.
Speaker 1 (01:42):
Exactly, it helps low-income families afford
decent housing.
Speaker 2 (01:46):
Right.
Speaker 1 (01:46):
And for landlords it's great because a portion of
that rent is guaranteed by thegovernment.
Speaker 2 (01:52):
So it's like a safety net.
It is a safety net.
Speaker 1 (01:54):
Okay, so that's low income.
Now what about high-end?
Speaker 2 (01:58):
High-end rentals can be more lucrative.
Okay, higher rents.
But you also face the risk oflonger vacancies.
Okay, especially if the economytakes a hit Okay.
Empty luxury apartment.
No one's paying rent.
Speaker 1 (02:10):
Ouch yeah, that can hurt.
Speaker 2 (02:12):
Yeah, big time.
Speaker 1 (02:13):
So we've talked about expectations, we've talked
about income.
Yeah, there's another big thingthat comes to mind.
What's that Maintenance.
Speaker 2 (02:21):
Oh yeah.
Speaker 1 (02:21):
Like, are we talking about a big difference in the
amount of work.
Speaker 2 (02:24):
Huge difference.
Speaker 1 (02:25):
Okay, so break it down for me.
Speaker 2 (02:26):
Low-income properties often mean older buildings
Right More wear and tear.
Speaker 1 (02:31):
Okay.
Speaker 2 (02:31):
You might be fixing leaky faucets in the middle of
the night.
Speaker 1 (02:34):
Oh, so you got to be handy.
Speaker 2 (02:36):
Or at least have a good plumber on speed dial.
Speaker 1 (02:38):
Okay.
Speaker 2 (02:39):
Now high-end tenants.
They expect a quick responseand high quality repairs.
Speaker 1 (02:45):
Yeah, they're paying a premium.
Speaker 2 (02:46):
Exactly.
You can't just slap some ducttape on it and call it a day.
Speaker 1 (02:49):
So you got to factor in those costs too.
Speaker 2 (02:51):
Absolutely.
Speaker 1 (02:52):
Okay, so we've covered a lot of ground here.
Speaker 2 (02:54):
We have.
Speaker 1 (02:55):
But let's zoom out a bit.
Speaker 2 (02:56):
Okay.
Speaker 1 (02:56):
Talk about property costs and appreciation.
Speaker 2 (02:59):
So in low income areas the purchase prices are
definitely lower.
Speaker 1 (03:04):
Okay, that's attractive.
Speaker 2 (03:05):
It is, but the tradeoff is you might see slower
appreciation unless theneighborhood gets gentrified.
Speaker 1 (03:12):
Right, which is a whole other conversation.
Speaker 2 (03:14):
Oh, yeah, a big one, so high end properties then,
High end, you're putting down alot more cash up front.
Speaker 1 (03:20):
Right.
Speaker 2 (03:20):
But the potential for big returns is there.
No-transcript.
Speaker 1 (03:50):
And those long vacancies.
Speaker 2 (03:51):
Exactly, those can really eat into your profits.
Speaker 1 (03:54):
Interesting.
So the risks are like almostopposite of each other.
Speaker 2 (03:58):
Kind of yeah.
Speaker 1 (03:59):
So, beyond the money, though, okay, I'm also thinking
about, like, the communityimpact.
Speaker 2 (04:04):
Oh yeah, that's huge.
Speaker 1 (04:05):
Like.
What kind of impact are youmaking as a landlord?
Speaker 2 (04:08):
Right, so in low income areas.
Speaker 1 (04:10):
Yeah.
Speaker 2 (04:10):
Providing affordable housing is so important.
Okay, you're contributing tothe community.
Speaker 1 (04:15):
Also.
Speaker 2 (04:16):
You're offering people safe and decent places to
live.
Speaker 1 (04:20):
Okay.
Speaker 2 (04:20):
That has a ripple effect, you know.
Speaker 1 (04:22):
I see.
Speaker 2 (04:23):
Now high end.
It's less about that directsocial impact.
Speaker 1 (04:27):
Okay.
Speaker 2 (04:27):
And more about shaping the neighborhood in a
different way.
Speaker 1 (04:30):
Oh it's a different kind of contribution, yeah for
sure.
So really it all comes back toyour goals as an investor.
Totally Like are you lookingfor steady cash flow?
Speaker 2 (04:37):
Yeah.
Speaker 1 (04:38):
Or are you swinging for the fences, trying to hit a
home run?
Speaker 2 (04:40):
Right.
Speaker 1 (04:41):
With a big capital gain.
Speaker 2 (04:42):
You got it.
Speaker 1 (04:43):
And choosing the right neighborhood is key.
Speaker 2 (04:45):
It's everything.
Speaker 1 (04:46):
You know speaking of making smart investments and you
know achieving your goals.
Yeah, there's this company I'vebeen hearing a lot about.
Speaker 2 (04:53):
Oh yeah.
Speaker 1 (04:53):
Flowers and Associates Property Rentals.
Speaker 2 (04:56):
I've heard of them.
Speaker 1 (04:57):
They have this really interesting program.
Speaker 2 (04:59):
What's that?
Speaker 1 (04:59):
Private money lending .
Speaker 2 (05:01):
Okay.
Speaker 1 (05:01):
And apparently you can get some pretty impressive
returns.
Speaker 2 (05:04):
Like how much are we talking?
Speaker 1 (05:05):
Up to 33%.
Speaker 2 (05:06):
Wow, that's significant.
Speaker 1 (05:08):
Yeah, so if anyone out there is looking to make
their money work harder, Forsure.
You know you might want to giveFlowers and Associates a call.
Speaker 2 (05:15):
Definitely.
Speaker 1 (05:16):
Their number is 901-445-8148.
Speaker 2 (05:21):
That's a good tip.
Speaker 1 (05:23):
So, as we wrap up, yeah, I think it's important to
leave people with something tothink about, absolutely Beyond
just the financial side ofthings.
Okay, you, know.
Consider the impact you want tomake as a landlord.
That's a great point.
Like, are you drawn tocommunity revitalization Right
Providing essential housing?
Speaker 2 (05:40):
Yeah.
Speaker 1 (05:41):
Or do you want to be a part of that luxury lifestyle
world?
Speaker 2 (05:45):
It's a good question to ask yourself.
Speaker 1 (05:46):
Yeah, really dig deep and figure out what kind of
landlord you want to be.
Speaker 2 (05:50):
Couldn't have said it better myself.
Speaker 1 (05:53):
All right, that's it for our deep dive today.
See you next time.
Speaker 2 (05:56):
Take care.
All right, so you want to get into real estate,
right?
Maybe you're looking at rentals, yeah, and a big question comes
up pretty quickly, like wheredo I even start?
Speaker 2 (00:08):
Yeah.
Speaker 1 (00:08):
Like low income rentals, or should I go high end
Totally?
And those are two prettydifferent worlds.
Speaker 2 (00:13):
Completely different.
Speaker 1 (00:14):
So today we're going to dive into this.
Speaker 2 (00:17):
Love it.
Speaker 1 (00:17):
Like what are the real, like on the ground
differences.
Speaker 2 (00:20):
Yeah.
Speaker 1 (00:26):
Between these two approaches to being a landlord,
you got it One thing that likejumps out at me right away is
just tenant expectations.
Oh yeah, you know you'redealing with people who just
have different needs and wants,for sure, out of their rental.
Speaker 2 (00:37):
Absolutely.
I mean, you're talking aboutdifferent lifestyles, different
priorities, like in a low incomerental.
Yeah, you know the tenantsreally focused on the basics is
it safe, is it clean, does thestuff work?
The stove the essentials, yeah,exactly you know they need a
place that's reliable andaffordable makes sense.
Now you go to a high-end placeokay and it's a totally
(00:59):
different story all right.
Speaker 1 (01:00):
So what are we talking about here?
Speaker 2 (01:01):
I think like a luxury high rise.
You know rooftop gardens.
Speaker 1 (01:06):
Wow.
Speaker 2 (01:07):
Pet spas.
Speaker 1 (01:08):
Pet spas.
Speaker 2 (01:09):
Smart home.
Speaker 1 (01:10):
So like an experience .
Speaker 2 (01:12):
A lifestyle.
Speaker 1 (01:13):
Yeah, they're paying for that lifestyle.
Speaker 2 (01:14):
Okay, so that's interesting.
Speaker 1 (01:16):
Yeah.
Speaker 2 (01:17):
So how does that like translate to your bottom line
though?
Speaker 1 (01:20):
Right.
Speaker 2 (01:20):
As a landlord, yeah, so let's talk about the money.
Speaker 1 (01:21):
Okay.
R Right as a landlord yeah.
So let's talk about the money.
Ok.
Rental income and like howstable is that income?
Right, low income areas youmight see lower rents per unit,
ok, but there's often morestability OK, especially when
you factor in things likegovernment assistance programs.
Right, you know Section 8.
Speaker 2 (01:40):
OK, so Section 8, that's where the government
helps out.
Speaker 1 (01:42):
Exactly, it helps low-income families afford
decent housing.
Speaker 2 (01:46):
Right.
Speaker 1 (01:46):
And for landlords it's great because a portion of
that rent is guaranteed by thegovernment.
Speaker 2 (01:52):
So it's like a safety net.
It is a safety net.
Speaker 1 (01:54):
Okay, so that's low income.
Now what about high-end?
Speaker 2 (01:58):
High-end rentals can be more lucrative.
Okay, higher rents.
But you also face the risk oflonger vacancies.
Okay, especially if the economytakes a hit Okay.
Empty luxury apartment.
No one's paying rent.
Speaker 1 (02:10):
Ouch yeah, that can hurt.
Speaker 2 (02:12):
Yeah, big time.
Speaker 1 (02:13):
So we've talked about expectations, we've talked
about income.
Yeah, there's another big thingthat comes to mind.
What's that Maintenance.
Speaker 2 (02:21):
Oh yeah.
Speaker 1 (02:21):
Like, are we talking about a big difference in the
amount of work.
Speaker 2 (02:24):
Huge difference.
Speaker 1 (02:25):
Okay, so break it down for me.
Speaker 2 (02:26):
Low-income properties often mean older buildings
Right More wear and tear.
Speaker 1 (02:31):
Okay.
Speaker 2 (02:31):
You might be fixing leaky faucets in the middle of
the night.
Speaker 1 (02:34):
Oh, so you got to be handy.
Speaker 2 (02:36):
Or at least have a good plumber on speed dial.
Speaker 1 (02:38):
Okay.
Speaker 2 (02:39):
Now high-end tenants.
They expect a quick responseand high quality repairs.
Speaker 1 (02:45):
Yeah, they're paying a premium.
Speaker 2 (02:46):
Exactly.
You can't just slap some ducttape on it and call it a day.
Speaker 1 (02:49):
So you got to factor in those costs too.
Speaker 2 (02:51):
Absolutely.
Speaker 1 (02:52):
Okay, so we've covered a lot of ground here.
Speaker 2 (02:54):
We have.
Speaker 1 (02:55):
But let's zoom out a bit.
Speaker 2 (02:56):
Okay.
Speaker 1 (02:56):
Talk about property costs and appreciation.
Speaker 2 (02:59):
So in low income areas the purchase prices are
definitely lower.
Speaker 1 (03:04):
Okay, that's attractive.
Speaker 2 (03:05):
It is, but the tradeoff is you might see slower
appreciation unless theneighborhood gets gentrified.
Speaker 1 (03:12):
Right, which is a whole other conversation.
Speaker 2 (03:14):
Oh, yeah, a big one, so high end properties then,
High end, you're putting down alot more cash up front.
Speaker 1 (03:20):
Right.
Speaker 2 (03:20):
But the potential for big returns is there.
No-transcript.
Speaker 1 (03:50):
And those long vacancies.
Speaker 2 (03:51):
Exactly, those can really eat into your profits.
Speaker 1 (03:54):
Interesting.
So the risks are like almostopposite of each other.
Speaker 2 (03:58):
Kind of yeah.
Speaker 1 (03:59):
So, beyond the money, though, okay, I'm also thinking
about, like, the communityimpact.
Speaker 2 (04:04):
Oh yeah, that's huge.
Speaker 1 (04:05):
Like.
What kind of impact are youmaking as a landlord?
Speaker 2 (04:08):
Right, so in low income areas.
Speaker 1 (04:10):
Yeah.
Speaker 2 (04:10):
Providing affordable housing is so important.
Okay, you're contributing tothe community.
Speaker 1 (04:15):
Also.
Speaker 2 (04:16):
You're offering people safe and decent places to
live.
Speaker 1 (04:20):
Okay.
Speaker 2 (04:20):
That has a ripple effect, you know.
Speaker 1 (04:22):
I see.
Speaker 2 (04:23):
Now high end.
It's less about that directsocial impact.
Speaker 1 (04:27):
Okay.
Speaker 2 (04:27):
And more about shaping the neighborhood in a
different way.
Speaker 1 (04:30):
Oh it's a different kind of contribution, yeah for
sure.
So really it all comes back toyour goals as an investor.
Totally Like are you lookingfor steady cash flow?
Speaker 2 (04:37):
Yeah.
Speaker 1 (04:38):
Or are you swinging for the fences, trying to hit a
home run?
Speaker 2 (04:40):
Right.
Speaker 1 (04:41):
With a big capital gain.
Speaker 2 (04:42):
You got it.
Speaker 1 (04:43):
And choosing the right neighborhood is key.
Speaker 2 (04:45):
It's everything.
Speaker 1 (04:46):
You know speaking of making smart investments and you
know achieving your goals.
Yeah, there's this company I'vebeen hearing a lot about.
Speaker 2 (04:53):
Oh yeah.
Speaker 1 (04:53):
Flowers and Associates Property Rentals.
Speaker 2 (04:56):
I've heard of them.
Speaker 1 (04:57):
They have this really interesting program.
Speaker 2 (04:59):
What's that?
Speaker 1 (04:59):
Private money lending .
Speaker 2 (05:01):
Okay.
Speaker 1 (05:01):
And apparently you can get some pretty impressive
returns.
Speaker 2 (05:04):
Like how much are we talking?
Speaker 1 (05:05):
Up to 33%.
Speaker 2 (05:06):
Wow, that's significant.
Speaker 1 (05:08):
Yeah, so if anyone out there is looking to make
their money work harder, Forsure.
You know you might want to giveFlowers and Associates a call.
Speaker 2 (05:15):
Definitely.
Speaker 1 (05:16):
Their number is 901-445-8148.
Speaker 2 (05:21):
That's a good tip.
Speaker 1 (05:23):
So, as we wrap up, yeah, I think it's important to
leave people with something tothink about, absolutely Beyond
just the financial side ofthings.
Okay, you, know.
Consider the impact you want tomake as a landlord.
That's a great point.
Like, are you drawn tocommunity revitalization Right
Providing essential housing?
Speaker 2 (05:40):
Yeah.
Speaker 1 (05:41):
Or do you want to be a part of that luxury lifestyle
world?
Speaker 2 (05:45):
It's a good question to ask yourself.
Speaker 1 (05:46):
Yeah, really dig deep and figure out what kind of
landlord you want to be.
Speaker 2 (05:50):
Couldn't have said it better myself.
Speaker 1 (05:53):
All right, that's it for our deep dive today.
See you next time.
Speaker 2 (05:56):
Take care.
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