July 22, 2025 • 20 mins
Chase Bauer appeared on the podcast last year, sharing how he built a rental portfolio that brought in $20,000 a month in profit.
Today, he's back—and his monthly rental profit has jumped to $28,000.
On this episode, we figure out exactly how he did it.
Chase shares how he’s finding deals in today’s market, financing new purchases, and using strategies to grow his rental income faster.
We break down the numbers on one of his recent deals and then take a look at the big picture—his entire portfolio and what it’s producing today.
https://rentalincomepodcast.com/episode531
Thanks To Our Sponsors:
MidSouth HomeBuyers – Turnkey Rentals In Memphis & Little Rock. Instant Cash Flow On Day One. (Priced between $100,000 to low $200's)
Ridge Lending Group - Making investment Mortgage process simple and stress-free.
Today, he's back—and his monthly rental profit has jumped to $28,000.
On this episode, we figure out exactly how he did it.
Chase shares how he’s finding deals in today’s market, financing new purchases, and using strategies to grow his rental income faster.
We break down the numbers on one of his recent deals and then take a look at the big picture—his entire portfolio and what it’s producing today.
https://rentalincomepodcast.com/episode531
Thanks To Our Sponsors:
MidSouth HomeBuyers – Turnkey Rentals In Memphis & Little Rock. Instant Cash Flow On Day One. (Priced between $100,000 to low $200's)
Ridge Lending Group - Making investment Mortgage process simple and stress-free.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:01):
Inspiring interviews with Today is Top Landlord, this is the
Rental Income Podcast, and now Damnly Jase, you were on
the podcast last year. For anyone that maybe didn't listen
to your episode or doesn't remember, can you give us
the real quick cliff notes version of your story? Dan.
Speaker 2 (00:21):
Last time we spoke, I kind of just went over
how I got to where I am today, snowballing my
profits into the next deal and building a fifty four
unit portfolio of rental properties.
Speaker 1 (00:34):
Are you still buying properties today?
Speaker 2 (00:37):
Yeah, I'm looking every day and I'm constantly making offers,
trying to find the next deal, keeping them as close
as I can to my properties that I currently have.
Speaker 1 (00:47):
One of the big challenges that we have today is
the prices are higher, the interest rates are higher. There's
just not a ton of deals out there. Has that
slowed you down over the last year.
Speaker 2 (01:01):
It's definitely slowed me down. There's been a ton of
interest in Indianapolis from out of state buyers that have
pushed up the values of these homes. But there's still
deals out there. And I've tried to save money with
my labor cost, with keeping contractors busy and just giving
them work to where they take care of me well.
Speaker 1 (01:20):
And Chase was on the podcast last year he was
profiting twenty thousand dollars a month from his rental properties.
Today he's grown his rental income and he's profiting twenty
eight thousand dollars a month. And on the show today,
we're going to figure out how he did it, how
he's finding deals, how he's financing them. We'll also take
(01:40):
a look at the numbers for one of his deals
and the numbers for his entire portfolio. Joining us on
the show today from Indianapolis is Chase Bauer. We'll take
a quick break to thank our sponsors. We'll come right
back and we'll talk to Chase. Are you thinking about
investing in rental properties? But maybe you don't know where
to start. My friends at Midsouth home Buyers make it simple.
(02:04):
For over twenty three years, they've been selling fully renovated,
turnkey rental properties in Memphis and Little Rock. We're talking
new roofs, plumbing, electric, kitchens, bathrooms. Everything is brand new
and done right. And here's the best part. Every property
comes with a well qualified tenant in place before you close.
(02:25):
That means you get cash flow from day one. Plus,
Midsouth continues to professionally manage the property for you after
the sale, and they back it up with two powerful guarantees.
You get a one year total maintenance warranty and a
lifetime occupancy guarantee. Personally, I've bought five properties from them
(02:46):
and I couldn't be happier. If you want to talk
to someone that's been through the process, feel free to
reach out to me. I'm happy to answer any questions.
Or if you're ready to get started, just go to
midsouthhome Buyers dot com. That's mid suthhome Buyers dot com.
It's a lot of work to find a really good
rental property, and when you actually find that property, you
(03:06):
want to make sure you're working with a lender that
can get that loan closed. The lender that I recommend
is jay Ley Ridge from Ridge Lending Group. She's a
nationwide lender and her specialty is helping investors finance rental properties.
She has a ton of loan programs and she can
find something customized to you for your situation. If you
(03:27):
want to find out more or you're ready to get
started today, just go to Ridge Lendinggroup dot com. That's
our Idge lendinggroup dot Com and MLS four two zero
five six chase. The cash flow that your rentals are
making is really impressive. When we talked last year, you
had a full time job. Are you still working today?
Speaker 2 (03:50):
Yes, I'm still working today, but I'm kind of planning
on stepping away from my job in twenty twenty six
and kind of just go on full time real estate
and maybe moving a little bit faster.
Speaker 1 (04:00):
I mean that seems to make a lot of sense.
I mean, you're you're doing so well with this, why
not go all in? What stopped you from doing this already?
Speaker 2 (04:13):
Kind of just have in the security blanket of a
full time job with benefits and health insurance and a
pretty decent pay to where I can. I don't have
to pinch as many pennies, if that makes.
Speaker 1 (04:22):
Sense, you know, right right? And when we talked last time,
you were self managing. Are you still self managing today? Yeah?
Speaker 2 (04:32):
I am self managing all of my units, and I
think that I'm always going to do a better job
than a property management company. Once a week, I take
a drive and just put eyes on things, and it
takes me just a couple of hours and a lot
of times these property management companies, they just really nickel
and dime you. So I want to say I got
(04:52):
quoted about seventy thousand dollars for property management, and with
what it takes me to do. As far as property management,
it's not necessarily that difficult or time consuming.
Speaker 1 (05:06):
Even with a full time job. I mean with working
forty plus hours a week managing fifty four units. Do
you ever feel overwhelmed? No?
Speaker 3 (05:17):
Not really.
Speaker 2 (05:18):
All of my tenants I'm pretty upfront with and I
pretty much tell them like, hey, these are how things
are gonna go. Give me twenty four hours to respond.
Email me whatever you need done, we'll get it fixed.
But you know, I just I'm really firm about how
I manage and I put a lot of the responsibilities
on those tenets.
Speaker 1 (05:38):
Hey that's great. Now let's talk about finding deals. So
how are you finding deals today?
Speaker 2 (05:46):
Luckily, I have three investors who are getting out of
real estate and they're selling off four or five a
year to not get hammered in taxes. And they have
sent me deals with enough meat on the bone that
I can purchase and that have been pretty solid. If
(06:09):
I'm looking on the MLS, I will see what's been
on the market for thirty days, and I'll call up
the realtor directly and just say, hey, what's it going
to take cash to get this deal done? You know,
I really like the property, and and with cash, you
can just you can get a cheaper deal, you can
move quicker, and you know everybody loves not paying as
much fees when it comes to closing.
Speaker 1 (06:30):
Now, when you say cash, are you using actually cash
or is it like a line of credit.
Speaker 3 (06:37):
It's been cash the entire time.
Speaker 2 (06:39):
I'll buy cash and then I'll start the refinance process
to get all that cash back.
Speaker 1 (06:44):
Okay, so you've got you've got some money. You're using
that to buy the property, and then after you close
on the property, then you refi you get your money back,
and then you can buy something else.
Speaker 2 (06:57):
Yeah, and you know a lot of times I'm buying
proper that need a little bit of work done. So
if I can buy it right, have my guys do
the work, and you know, have cheap labor done and
up the rents or put a tenant in there, I
can get an ARV that that's much higher than what
I paid for. And then when I take it to
the bank, the appraisal is good and I can refinance
(07:20):
that cash back and maybe be all into the property
for five ten thousand bucks.
Speaker 1 (07:26):
So tell me, like the price range that you're looking at,
Like how much how much money does it typically take
for you to buy a property?
Speaker 2 (07:36):
Well, it kind of depends on if it's a single
family or if it's a one to one duplex, two
to one duplex, three to one duplex. But you know,
my money maker is a one to one duplex that
I can get for right around one hundred that doesn't
need maybe ten thousand dollars worth of rehab costs. And
(07:57):
if I can find that deal and and have my
guys busy working on it for a fair price, it's
going to praise. If I'm all in one ten, it's
going to praise for one forty one forty five.
Speaker 1 (08:08):
Okay, So you're all in at one ten, So you've
got one hundred and ten for a typical deal, you've
got one hundred and ten thousand dollars in cash. You
buy the property, fix it up, and then you go
to your bank, put a loan on it, and get
your one hundred and ten thousand dollars back, or you know.
Speaker 3 (08:27):
Be all in for five thousand bucks.
Speaker 2 (08:29):
And after debt services, it's going to profit five hundred
dollars a month, so you know, in a year's time,
I'll get that money back.
Speaker 1 (08:37):
Now, what are the neighborhoods like?
Speaker 2 (08:39):
I would say that my neighborhoods are right around the
C minus D plus area, But if you go a
half mile up the road, you're getting into B minus
B areas. They're kind of just I'm in a small
pocket on the east side where you can pretty much
find good deals. The rent number are, you know, really good,
(09:02):
and within blocks you have some some better houses.
Speaker 1 (09:07):
Yeah, it doesn't when you say C minus D plus.
Everyone kind of has a different idea of what that means.
But would you say the neighborhoods are safe, Like would
you feel comfortable walking around at night?
Speaker 3 (09:22):
Oh?
Speaker 2 (09:22):
Man, okay, this is kind of it's kind of different
at night. If you're looking for trouble, you're gonna be
able to find it. And I don't care if you're
in a C or B area. It's it's out there
if you're looking for it. I've lived in these areas
and I wasn't going around at midnight looking for stuff.
(09:46):
But when I never felt that I was unsafe living
in my homes in that area.
Speaker 1 (09:51):
Okay, okay, So so it's not a horrible area, but
you maybe just have to be a little cautious. Sure, okay, okay, awesome.
Let's take a look at your portfolio. So fifty four rentals,
it's a mix of single family houses and duplexes.
Speaker 3 (10:08):
Correct.
Speaker 1 (10:09):
Now, how much gross rent do you bring in every month?
Speaker 3 (10:13):
It's right at about fifty four thousand.
Speaker 1 (10:16):
Okay, And that's going to vary, you know, if you
have a vacancy or something, but on average you're going
to bring in fifty four thousand a month. Yes, Now,
when we look at your fixed expenses, your your mortgage
taxes and insurance, how much does that come out to
be every month?
Speaker 3 (10:33):
It's right out about twenty one thousand, okay.
Speaker 1 (10:36):
And then in a typical month, how much do you
spend on repairs? And I'm sure this is going to
vary too, depending on on what's going on, But on
a typical month, what do you spend.
Speaker 2 (10:48):
I would say probably four to five thousand dollars on average,
you know, some months much less. But then the next
month I could have to replace a room for you know,
a couple of furmaces.
Speaker 1 (10:59):
So Yeah, all right, So fifty four thousand in rend,
twenty one thousand in taxes, insurance and mortgage, four to
five thousand in repairs. So you're making twenty eight twenty
nine thousand dollars a month in cash flow right now.
So what do you do with that? I mean, so
(11:20):
you've got a full time job. Do you live off
of your job money and then save the cash flow
or how do you have things set up? Yeah?
Speaker 2 (11:30):
I have a high yield savings account that I think
is four and a half, which is pretty solid. But
every month I'm taking that cash and I'm sending it
right back to a property.
Speaker 3 (11:40):
So there's there's a lot of movement in my Yeah.
Speaker 1 (11:43):
Sure, sure, Well let's take a look at one of
your deals and figure out figure out exactly what you're doing.
So tell me about this property.
Speaker 2 (11:54):
So the last property I bought was a duplex that
was on the mark on the MLS for I think
like nine ninety five or ninety eight, I can't remember.
And it was on the same street as another property
that I own, and I mean, it's right in my pocket,
and I toured it with my realtor and I'm like, man,
this place is a dump. You know, it had a
(12:16):
new roof, it needs painted, it needs flooring, it needs
pretty much everything, and.
Speaker 3 (12:22):
It's just so close to my other properties.
Speaker 2 (12:24):
It's like, I have to buy this because I can
control who's coming into the neighborhood fixing it up. It's
my contractor lives five blocks away, so it's going to
be easy for him to work on and it's going
to give him a project for the next six weeks.
So I just offered them. I said i'll get I'll
take it for eighty six, and surprisingly enough, they accepted
(12:46):
that offer, and we've been working on it for the
past four weeks. It's almost done and I might be
twenty thousand all into.
Speaker 3 (12:54):
It, so we'll say one oh five.
Speaker 2 (12:56):
It's going to praise for one forty five, and it's
going to nine hundred dollars aside, so you know it's
going to be a really good rental, and you know,
I don't definitely don't regret buying it.
Speaker 1 (13:07):
Has anything come up, like any weird things come up
in the rehab, not on this one.
Speaker 2 (13:15):
I haven't had any horror stories for at least a year.
I'm trying to think if if there's anything that's kind
of surprised me that I didn't see coming. As far
as my rental properties, and everything's been going on really
not going to flushes.
Speaker 1 (13:32):
So as far as like what you're doing to properties,
is it a lot of cosmetic type.
Speaker 2 (13:37):
Work, Yeah, windows, roofs, flooring, minor foundation stuff. After eight
years of doing this, I finally have a guy for everything.
I mean, there's there's nothing that could happen that I
couldn't send a guy to go fix. And that's I mean,
that's just such a blessing in real estate because that
(14:01):
if you have guys that can help you with whatever
you need, you never have a problem because you have
something you can call on. So you know, I've gotten
definitely lucky with the connections that I've made.
Speaker 1 (14:13):
Now, how long does it take so you do the rehab,
get the property all fixed up, get some tenants in there?
How long does it take for you to be able
to do that? The cash out REFI to get your
money back.
Speaker 2 (14:28):
Well, my banker, for whatever reason, has been extremely busy,
and from what he said is things are really starting
to speed up and pick up and he's getting busier.
So the refinance process for me, which used to take
three weeks is now taking six weeks. So I'll try
(14:49):
to start that process a little bit sooner, but it's
taking me from the time that I send the email
and the information, it's taken me about six weeks get
my funds back.
Speaker 1 (14:57):
And there's no seasoning period. The bank is like, you
need to own the property for a year. Nope, okay, awesome, awesome,
all right, So this property that we're talking about will
be rented for about nine hundred dollars a side.
Speaker 3 (15:12):
Yeah.
Speaker 1 (15:12):
Do you typically rent the places out pretty quickly.
Speaker 2 (15:16):
I've been working with a lot of housing authority agencies
and they call me literally at least every other day
because I'm a good landlord and I'm so involved with
the process. They know that I'm going to return their
text messages, answer their phone calls, return their emails, and
I'm going to help them house you know, people with vouchers,
(15:39):
homeless veterans. I just I prefer working with them because
they do a lot of the screening process for me,
and they're paying, you know, sometimes the full amount rent
for a year, sometimes half the rent for six months.
They have a case manager that's keeping eyes on things,
(15:59):
and just they do a really good job here in Indianapolis,
helping the less fortunate when it comes to, you know,
housing and getting back on their feet.
Speaker 1 (16:09):
What percentage of your properties would you say are our
section eight.
Speaker 2 (16:15):
I can tell you that right now, I'm probably at
thirty percent when I'm looking up spreadsheets right now, I'd
love to be, you know, seventy five percent. It's just
I have good tenants in place, and you don't really
want to rock the boat get them out of there,
you know.
Speaker 1 (16:32):
Yeah, I mean I think that's awesome. It's just one
less thing to worry about. You know, that money is
going to get direct deposited on the first and and yeah,
it's just easy.
Speaker 2 (16:44):
Yeah, you know, you're not chasing down rent. Which so
it's let's just look here, it's the fifteenth of the month,
and so we're halfway through the month, and I still
have ninety three hundred dollars that's that's out there. So
and those are from tenants that are that aren't on
a voucher program, right, And it's like I'm having to
(17:04):
send text messages and collect late fees and so that's
an added headache to it.
Speaker 3 (17:09):
But you know, what can you do now?
Speaker 1 (17:12):
What about paying more for properties? Today. I mean the
market's been appreciating, prices have gone up. You're having to
pay more for properties today than you were a couple
of years ago. Has that been hard to wrap your
head around?
Speaker 2 (17:27):
Well, it's definitely true. I mean, prices have gone up,
and they've gone up so much in a year's time,
it's like when is stuff going to cool off? But
at the same time as prices have gone up for
the for the real estate, so of rents, I've bought
properties where tenants were paying you know, hundred five hundred
dollars for a one bedroom and I'm like, hey, man,
(17:49):
like I can, I can get nine hundred out of this.
So rents have got gone up just as much. So
it's not it's not necessarily been that much of an
issue for me because I know where rents are.
Speaker 1 (18:02):
Right, right, right. That's a good point. And would you
say the same is true of interest rates, that you're
having to pay higher interest rates today, but the rents
are higher and that's offset some of that.
Speaker 2 (18:14):
Yeah, that offsets it too. What I've really noticed is
I've been getting hammered with property taxes. Property taxes have
been what's kind of like really put a dent in my.
Speaker 3 (18:24):
Portfolio over the past couple of years.
Speaker 2 (18:26):
I think just this year alone, I'm paying extra seven
thousand dollars a year just in property.
Speaker 1 (18:34):
So that, yeah, that's that that hurts. But but yeah,
I mean I think you just got to look at
this long term. That over time, the rents are going
to continue to go up they always do, and rates
are probably going to come down at some point. So
I think you just got to look long term, and
you know, the properties are probably going to be more
(18:56):
profitable as time goes by.
Speaker 2 (18:58):
Oh for sure. I mean, it's just part of it.
I mean, if it was that bad, I wouldn't still
be buying, you know. So it can't be too bad
because I'm still sitting here making offers every every week.
Speaker 1 (19:10):
If anybody wants to reach out to Chase, I've got
his contact information on the website. You can find it
at Rental incomepodcast dot com slash episode five thirty one.
If Chase inspired you and you're ready to buy your
first rental property or you want to add to your portfolio,
reach out to one of our sponsors. They'd be happy
(19:31):
to help you get started. Midsouth home buyers, if you're
looking for a property, that's ready to go. All the
rehab is done instant cash flow on day one. Check
out midsouthhome Buyers dot com and if you're looking for
financing on a rental property, check out jay Ley Ridge
at Ridge Lendinggroup dot com NMLS four two zero five six.
(19:54):
Thank you so much for checking out the podcast today.
Make sure you hit the follow button. I out a
new episode every single Tuesday, and if you're following the show,
you'll get notified when the next episode comes out. My
name is Dan Lane and this has been the Rental
Income podcast
Inspiring interviews with Today is Top Landlord, this is the
Rental Income Podcast, and now Damnly Jase, you were on
the podcast last year. For anyone that maybe didn't listen
to your episode or doesn't remember, can you give us
the real quick cliff notes version of your story? Dan.
Speaker 2 (00:21):
Last time we spoke, I kind of just went over
how I got to where I am today, snowballing my
profits into the next deal and building a fifty four
unit portfolio of rental properties.
Speaker 1 (00:34):
Are you still buying properties today?
Speaker 2 (00:37):
Yeah, I'm looking every day and I'm constantly making offers,
trying to find the next deal, keeping them as close
as I can to my properties that I currently have.
Speaker 1 (00:47):
One of the big challenges that we have today is
the prices are higher, the interest rates are higher. There's
just not a ton of deals out there. Has that
slowed you down over the last year.
Speaker 2 (01:01):
It's definitely slowed me down. There's been a ton of
interest in Indianapolis from out of state buyers that have
pushed up the values of these homes. But there's still
deals out there. And I've tried to save money with
my labor cost, with keeping contractors busy and just giving
them work to where they take care of me well.
Speaker 1 (01:20):
And Chase was on the podcast last year he was
profiting twenty thousand dollars a month from his rental properties.
Today he's grown his rental income and he's profiting twenty
eight thousand dollars a month. And on the show today,
we're going to figure out how he did it, how
he's finding deals, how he's financing them. We'll also take
(01:40):
a look at the numbers for one of his deals
and the numbers for his entire portfolio. Joining us on
the show today from Indianapolis is Chase Bauer. We'll take
a quick break to thank our sponsors. We'll come right
back and we'll talk to Chase. Are you thinking about
investing in rental properties? But maybe you don't know where
to start. My friends at Midsouth home Buyers make it simple.
(02:04):
For over twenty three years, they've been selling fully renovated,
turnkey rental properties in Memphis and Little Rock. We're talking
new roofs, plumbing, electric, kitchens, bathrooms. Everything is brand new
and done right. And here's the best part. Every property
comes with a well qualified tenant in place before you close.
(02:25):
That means you get cash flow from day one. Plus,
Midsouth continues to professionally manage the property for you after
the sale, and they back it up with two powerful guarantees.
You get a one year total maintenance warranty and a
lifetime occupancy guarantee. Personally, I've bought five properties from them
(02:46):
and I couldn't be happier. If you want to talk
to someone that's been through the process, feel free to
reach out to me. I'm happy to answer any questions.
Or if you're ready to get started, just go to
midsouthhome Buyers dot com. That's mid suthhome Buyers dot com.
It's a lot of work to find a really good
rental property, and when you actually find that property, you
(03:06):
want to make sure you're working with a lender that
can get that loan closed. The lender that I recommend
is jay Ley Ridge from Ridge Lending Group. She's a
nationwide lender and her specialty is helping investors finance rental properties.
She has a ton of loan programs and she can
find something customized to you for your situation. If you
(03:27):
want to find out more or you're ready to get
started today, just go to Ridge Lendinggroup dot com. That's
our Idge lendinggroup dot Com and MLS four two zero
five six chase. The cash flow that your rentals are
making is really impressive. When we talked last year, you
had a full time job. Are you still working today?
Speaker 2 (03:50):
Yes, I'm still working today, but I'm kind of planning
on stepping away from my job in twenty twenty six
and kind of just go on full time real estate
and maybe moving a little bit faster.
Speaker 1 (04:00):
I mean that seems to make a lot of sense.
I mean, you're you're doing so well with this, why
not go all in? What stopped you from doing this already?
Speaker 2 (04:13):
Kind of just have in the security blanket of a
full time job with benefits and health insurance and a
pretty decent pay to where I can. I don't have
to pinch as many pennies, if that makes.
Speaker 1 (04:22):
Sense, you know, right right? And when we talked last time,
you were self managing. Are you still self managing today? Yeah?
Speaker 2 (04:32):
I am self managing all of my units, and I
think that I'm always going to do a better job
than a property management company. Once a week, I take
a drive and just put eyes on things, and it
takes me just a couple of hours and a lot
of times these property management companies, they just really nickel
and dime you. So I want to say I got
(04:52):
quoted about seventy thousand dollars for property management, and with
what it takes me to do. As far as property management,
it's not necessarily that difficult or time consuming.
Speaker 1 (05:06):
Even with a full time job. I mean with working
forty plus hours a week managing fifty four units. Do
you ever feel overwhelmed? No?
Speaker 3 (05:17):
Not really.
Speaker 2 (05:18):
All of my tenants I'm pretty upfront with and I
pretty much tell them like, hey, these are how things
are gonna go. Give me twenty four hours to respond.
Email me whatever you need done, we'll get it fixed.
But you know, I just I'm really firm about how
I manage and I put a lot of the responsibilities
on those tenets.
Speaker 1 (05:38):
Hey that's great. Now let's talk about finding deals. So
how are you finding deals today?
Speaker 2 (05:46):
Luckily, I have three investors who are getting out of
real estate and they're selling off four or five a
year to not get hammered in taxes. And they have
sent me deals with enough meat on the bone that
I can purchase and that have been pretty solid. If
(06:09):
I'm looking on the MLS, I will see what's been
on the market for thirty days, and I'll call up
the realtor directly and just say, hey, what's it going
to take cash to get this deal done? You know,
I really like the property, and and with cash, you
can just you can get a cheaper deal, you can
move quicker, and you know everybody loves not paying as
much fees when it comes to closing.
Speaker 1 (06:30):
Now, when you say cash, are you using actually cash
or is it like a line of credit.
Speaker 3 (06:37):
It's been cash the entire time.
Speaker 2 (06:39):
I'll buy cash and then I'll start the refinance process
to get all that cash back.
Speaker 1 (06:44):
Okay, so you've got you've got some money. You're using
that to buy the property, and then after you close
on the property, then you refi you get your money back,
and then you can buy something else.
Speaker 2 (06:57):
Yeah, and you know a lot of times I'm buying
proper that need a little bit of work done. So
if I can buy it right, have my guys do
the work, and you know, have cheap labor done and
up the rents or put a tenant in there, I
can get an ARV that that's much higher than what
I paid for. And then when I take it to
the bank, the appraisal is good and I can refinance
(07:20):
that cash back and maybe be all into the property
for five ten thousand bucks.
Speaker 1 (07:26):
So tell me, like the price range that you're looking at,
Like how much how much money does it typically take
for you to buy a property?
Speaker 2 (07:36):
Well, it kind of depends on if it's a single
family or if it's a one to one duplex, two
to one duplex, three to one duplex. But you know,
my money maker is a one to one duplex that
I can get for right around one hundred that doesn't
need maybe ten thousand dollars worth of rehab costs. And
(07:57):
if I can find that deal and and have my
guys busy working on it for a fair price, it's
going to praise. If I'm all in one ten, it's
going to praise for one forty one forty five.
Speaker 1 (08:08):
Okay, So you're all in at one ten, So you've
got one hundred and ten for a typical deal, you've
got one hundred and ten thousand dollars in cash. You
buy the property, fix it up, and then you go
to your bank, put a loan on it, and get
your one hundred and ten thousand dollars back, or you know.
Speaker 3 (08:27):
Be all in for five thousand bucks.
Speaker 2 (08:29):
And after debt services, it's going to profit five hundred
dollars a month, so you know, in a year's time,
I'll get that money back.
Speaker 1 (08:37):
Now, what are the neighborhoods like?
Speaker 2 (08:39):
I would say that my neighborhoods are right around the
C minus D plus area, But if you go a
half mile up the road, you're getting into B minus
B areas. They're kind of just I'm in a small
pocket on the east side where you can pretty much
find good deals. The rent number are, you know, really good,
(09:02):
and within blocks you have some some better houses.
Speaker 1 (09:07):
Yeah, it doesn't when you say C minus D plus.
Everyone kind of has a different idea of what that means.
But would you say the neighborhoods are safe, Like would
you feel comfortable walking around at night?
Speaker 3 (09:22):
Oh?
Speaker 2 (09:22):
Man, okay, this is kind of it's kind of different
at night. If you're looking for trouble, you're gonna be
able to find it. And I don't care if you're
in a C or B area. It's it's out there
if you're looking for it. I've lived in these areas
and I wasn't going around at midnight looking for stuff.
(09:46):
But when I never felt that I was unsafe living
in my homes in that area.
Speaker 1 (09:51):
Okay, okay, So so it's not a horrible area, but
you maybe just have to be a little cautious. Sure, okay, okay, awesome.
Let's take a look at your portfolio. So fifty four rentals,
it's a mix of single family houses and duplexes.
Speaker 3 (10:08):
Correct.
Speaker 1 (10:09):
Now, how much gross rent do you bring in every month?
Speaker 3 (10:13):
It's right at about fifty four thousand.
Speaker 1 (10:16):
Okay, And that's going to vary, you know, if you
have a vacancy or something, but on average you're going
to bring in fifty four thousand a month. Yes, Now,
when we look at your fixed expenses, your your mortgage
taxes and insurance, how much does that come out to
be every month?
Speaker 3 (10:33):
It's right out about twenty one thousand, okay.
Speaker 1 (10:36):
And then in a typical month, how much do you
spend on repairs? And I'm sure this is going to
vary too, depending on on what's going on, But on
a typical month, what do you spend.
Speaker 2 (10:48):
I would say probably four to five thousand dollars on average,
you know, some months much less. But then the next
month I could have to replace a room for you know,
a couple of furmaces.
Speaker 1 (10:59):
So Yeah, all right, So fifty four thousand in rend,
twenty one thousand in taxes, insurance and mortgage, four to
five thousand in repairs. So you're making twenty eight twenty
nine thousand dollars a month in cash flow right now.
So what do you do with that? I mean, so
(11:20):
you've got a full time job. Do you live off
of your job money and then save the cash flow
or how do you have things set up? Yeah?
Speaker 2 (11:30):
I have a high yield savings account that I think
is four and a half, which is pretty solid. But
every month I'm taking that cash and I'm sending it
right back to a property.
Speaker 3 (11:40):
So there's there's a lot of movement in my Yeah.
Speaker 1 (11:43):
Sure, sure, Well let's take a look at one of
your deals and figure out figure out exactly what you're doing.
So tell me about this property.
Speaker 2 (11:54):
So the last property I bought was a duplex that
was on the mark on the MLS for I think
like nine ninety five or ninety eight, I can't remember.
And it was on the same street as another property
that I own, and I mean, it's right in my pocket,
and I toured it with my realtor and I'm like, man,
this place is a dump. You know, it had a
(12:16):
new roof, it needs painted, it needs flooring, it needs
pretty much everything, and.
Speaker 3 (12:22):
It's just so close to my other properties.
Speaker 2 (12:24):
It's like, I have to buy this because I can
control who's coming into the neighborhood fixing it up. It's
my contractor lives five blocks away, so it's going to
be easy for him to work on and it's going
to give him a project for the next six weeks.
So I just offered them. I said i'll get I'll
take it for eighty six, and surprisingly enough, they accepted
(12:46):
that offer, and we've been working on it for the
past four weeks. It's almost done and I might be
twenty thousand all into.
Speaker 3 (12:54):
It, so we'll say one oh five.
Speaker 2 (12:56):
It's going to praise for one forty five, and it's
going to nine hundred dollars aside, so you know it's
going to be a really good rental, and you know,
I don't definitely don't regret buying it.
Speaker 1 (13:07):
Has anything come up, like any weird things come up
in the rehab, not on this one.
Speaker 2 (13:15):
I haven't had any horror stories for at least a year.
I'm trying to think if if there's anything that's kind
of surprised me that I didn't see coming. As far
as my rental properties, and everything's been going on really
not going to flushes.
Speaker 1 (13:32):
So as far as like what you're doing to properties,
is it a lot of cosmetic type.
Speaker 2 (13:37):
Work, Yeah, windows, roofs, flooring, minor foundation stuff. After eight
years of doing this, I finally have a guy for everything.
I mean, there's there's nothing that could happen that I
couldn't send a guy to go fix. And that's I mean,
that's just such a blessing in real estate because that
(14:01):
if you have guys that can help you with whatever
you need, you never have a problem because you have
something you can call on. So you know, I've gotten
definitely lucky with the connections that I've made.
Speaker 1 (14:13):
Now, how long does it take so you do the rehab,
get the property all fixed up, get some tenants in there?
How long does it take for you to be able
to do that? The cash out REFI to get your
money back.
Speaker 2 (14:28):
Well, my banker, for whatever reason, has been extremely busy,
and from what he said is things are really starting
to speed up and pick up and he's getting busier.
So the refinance process for me, which used to take
three weeks is now taking six weeks. So I'll try
(14:49):
to start that process a little bit sooner, but it's
taking me from the time that I send the email
and the information, it's taken me about six weeks get
my funds back.
Speaker 1 (14:57):
And there's no seasoning period. The bank is like, you
need to own the property for a year. Nope, okay, awesome, awesome,
all right, So this property that we're talking about will
be rented for about nine hundred dollars a side.
Speaker 3 (15:12):
Yeah.
Speaker 1 (15:12):
Do you typically rent the places out pretty quickly.
Speaker 2 (15:16):
I've been working with a lot of housing authority agencies
and they call me literally at least every other day
because I'm a good landlord and I'm so involved with
the process. They know that I'm going to return their
text messages, answer their phone calls, return their emails, and
I'm going to help them house you know, people with vouchers,
(15:39):
homeless veterans. I just I prefer working with them because
they do a lot of the screening process for me,
and they're paying, you know, sometimes the full amount rent
for a year, sometimes half the rent for six months.
They have a case manager that's keeping eyes on things,
(15:59):
and just they do a really good job here in Indianapolis,
helping the less fortunate when it comes to, you know,
housing and getting back on their feet.
Speaker 1 (16:09):
What percentage of your properties would you say are our
section eight.
Speaker 2 (16:15):
I can tell you that right now, I'm probably at
thirty percent when I'm looking up spreadsheets right now, I'd
love to be, you know, seventy five percent. It's just
I have good tenants in place, and you don't really
want to rock the boat get them out of there,
you know.
Speaker 1 (16:32):
Yeah, I mean I think that's awesome. It's just one
less thing to worry about. You know, that money is
going to get direct deposited on the first and and yeah,
it's just easy.
Speaker 2 (16:44):
Yeah, you know, you're not chasing down rent. Which so
it's let's just look here, it's the fifteenth of the month,
and so we're halfway through the month, and I still
have ninety three hundred dollars that's that's out there. So
and those are from tenants that are that aren't on
a voucher program, right, And it's like I'm having to
(17:04):
send text messages and collect late fees and so that's
an added headache to it.
Speaker 3 (17:09):
But you know, what can you do now?
Speaker 1 (17:12):
What about paying more for properties? Today. I mean the
market's been appreciating, prices have gone up. You're having to
pay more for properties today than you were a couple
of years ago. Has that been hard to wrap your
head around?
Speaker 2 (17:27):
Well, it's definitely true. I mean, prices have gone up,
and they've gone up so much in a year's time,
it's like when is stuff going to cool off? But
at the same time as prices have gone up for
the for the real estate, so of rents, I've bought
properties where tenants were paying you know, hundred five hundred
dollars for a one bedroom and I'm like, hey, man,
(17:49):
like I can, I can get nine hundred out of this.
So rents have got gone up just as much. So
it's not it's not necessarily been that much of an
issue for me because I know where rents are.
Speaker 1 (18:02):
Right, right, right. That's a good point. And would you
say the same is true of interest rates, that you're
having to pay higher interest rates today, but the rents
are higher and that's offset some of that.
Speaker 2 (18:14):
Yeah, that offsets it too. What I've really noticed is
I've been getting hammered with property taxes. Property taxes have
been what's kind of like really put a dent in my.
Speaker 3 (18:24):
Portfolio over the past couple of years.
Speaker 2 (18:26):
I think just this year alone, I'm paying extra seven
thousand dollars a year just in property.
Speaker 1 (18:34):
So that, yeah, that's that that hurts. But but yeah,
I mean I think you just got to look at
this long term. That over time, the rents are going
to continue to go up they always do, and rates
are probably going to come down at some point. So
I think you just got to look long term, and
you know, the properties are probably going to be more
(18:56):
profitable as time goes by.
Speaker 2 (18:58):
Oh for sure. I mean, it's just part of it.
I mean, if it was that bad, I wouldn't still
be buying, you know. So it can't be too bad
because I'm still sitting here making offers every every week.
Speaker 1 (19:10):
If anybody wants to reach out to Chase, I've got
his contact information on the website. You can find it
at Rental incomepodcast dot com slash episode five thirty one.
If Chase inspired you and you're ready to buy your
first rental property or you want to add to your portfolio,
reach out to one of our sponsors. They'd be happy
(19:31):
to help you get started. Midsouth home buyers, if you're
looking for a property, that's ready to go. All the
rehab is done instant cash flow on day one. Check
out midsouthhome Buyers dot com and if you're looking for
financing on a rental property, check out jay Ley Ridge
at Ridge Lendinggroup dot com NMLS four two zero five six.
(19:54):
Thank you so much for checking out the podcast today.
Make sure you hit the follow button. I out a
new episode every single Tuesday, and if you're following the show,
you'll get notified when the next episode comes out. My
name is Dan Lane and this has been the Rental
Income podcast
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