April 22, 2025 • 14 mins
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According to The White Coat Investor, the fastest path to build wealth and attain financial independence as a doctor is through building a rental empire. Physicians face unique challenges when building wealth through real estate while balancing demanding careers and family life. This conversation explores the crucial decision points that determine success or frustration when doctors invest in properties.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
What's advice that you're giving to these now
residents who are maybe in ahigh cost of living area?
Should I rent or should I justget like a duplex?
But with these interest rates Imean it's hella high.
What's your thoughts on thatstuff?
Speaker 2 (00:11):
The right answer if you're not going to be in a
place for very long historicallyis to rent and not buy.
If you look at the historicaldata, you got to be someplace
three to five plus years for itto appreciate enough to overcome
the transaction costs of buyingand selling and residency tends
to be three to five years long.
So it's always been a gamble tobuy as a resident.
(00:32):
Now there are times when itpays off.
If you bought a house when Istarted residency in 2003 and
you sold it when I leftresidency in 2006, you might've
doubled your money.
Speaker 1 (00:41):
Right before the bubble.
Right before the bubble?
Yeah, right before the bubble.
Speaker 2 (00:44):
But if you came in and replaced those residents.
You bought a house in 2006 andyou tried to sell it in 2009.
Where were you then?
Speaker 1 (00:52):
So you know a lot of what we're discussing.
You know I'm basing it off ofthe article that you put out
back in March 14th the mostcommon questions I get asked by
young doctors.
We'll put it in the show notes.
Really good article that youwrote.
So I'm going to take a momentto be vulnerable and kind of
talk about what's going on withus Two physician couple, right,
(01:12):
renee OB I'm trauma surgery.
We podcast, we have otherbusinesses, but we also have a
real estate business that we'repretty proud of, right.
But also, at the same time,there's a lot of work that goes
along with it.
Right, there's a lot ofbookkeeping that you have to
keep up with the second jobaspect of real estate investing.
Right, right.
(01:33):
So you start to get to thepoint where we we sometimes
think about, or at least I'mthinking about.
I don't know if you want toverbalize that, but like is the
juice worth the squeeze, rightIs that?
Speaker 3 (01:42):
how you say it, or is the squeeze worth the juice.
Whichever way, is the juiceworth the?
Speaker 1 (01:45):
squeeze Right, you know.
So you know we have, we'reinvesting, we're index funding
our way through this.
We also have stuff that'sinvested in, you know we're
using, you know, real estateexcuse me in Vanguard real
estate funds.
You know so we have investmentsin there, we have a syndication
, but keeping track of all ofthat, like you said, is like a
(02:06):
second job in itself.
What, like when you are talkingto, let's say, like young
attendings or even midattendings, with the way how
things are now, like, what kindof advice are you giving them?
Because there's always thiscraze of you know, yeah, you're
a full time doctor, Right, andthen you still got home life,
and then you also have theseside hustles.
(02:26):
There's got to be a way toprioritize all of this stuff.
What's your advice in terms ofprioritizing?
Making sure that you don't gettoo overleveraged in real estate
, making sure you don't get too?
Do you know where I'm goingwith all of this?
Speaker 2 (02:38):
Yeah, yeah.
I think this is a commondilemma among docs, particularly
entrepreneurial kind of docslike yourselves.
How do we do all this?
What's the right balance for us?
And I think there's a fewconcepts that are worth talking
about.
The first one is real estateinvesting in general, right, a
real estate investing is aviable pathway to wealth.
(03:00):
In fact, it might be one of thefastest pathways to wealth with
the reasonable amount ofleverage and reasonable amount
of work.
In fact, I think maybe thefastest way to financial
independence is actually to comeout of residency.
Do all of your physician workas a locum tenens and put all
the money you can scrape out ofthat that you're not spending
(03:22):
because hopefully the locum'scompany is paying for most of
your living expenses.
Take all the money you canscrape out of that that you're
not spending because hopefullythe locums company is paying for
most of your living expenses.
Take all the money you canscrape out of that and build a
short-term rental empire.
I actually think that's thefastest way to financial
independence.
I think it could probably bedone relatively reliably in
about five years.
I really do, but it's a lot ofwork.
(03:43):
It's not the lifestyle most ofus would choose.
There's a lot of downsides toit.
There's some risk there.
You're going to have someleverage risk as well, but
that's probably the fastest wayout of medicine that I can think
of.
That said, I don't think that'swhat most people do.
I think most people are like you.
They get all excited about realestate.
They're like look at all thesecool people doing all these cool
(04:03):
things with real estate.
Let's get us some of that realestate.
And then they're forced to tryto decide how they're going to
invest in real estate.
And there's all these differentways to invest in real estate
that are totally reasonable.
Right At one end of thespectrum is VNQ.
Right, it's the Vanguard realestate ETF.
Right, you're buying 120 or 140companies all this publicly
(04:28):
traded real estate.
You're very diversified.
It's very liquid.
It's very passive, it's veryeasy.
Right At the other end of thespectrum, you're buying
properties with nothing on themand you're getting permits from
the county and you're buildingthe place and you're renting the
place and you're managing theplace and you know when you
decide to sell the place, you'reexchanging it for another real
(04:49):
estate.
You know property and you know,and there's all this other
stuff in between.
You know private funds andsyndications and turnkey
properties and short-termrentals and long-term rentals
and all this stuff in between.
The most important thing is tomatch you and how you want to
invest in real estate to whereyou fit on the spectrum.
Speaker 1 (05:10):
And in my case, I'm a busy guy.
Speaker 2 (05:12):
I'm doing white coat investor stuff.
I'm still practicing medicine.
I want to be out adventuring inthe world.
I'm living this post-financialindependence life.
I don't want to spend all mytime working.
I chose the very passive side ofthat spectrum.
I'm in some passive privatereal estate funds.
I have a few syndications thatI'm just waiting to go round
trip, mostly private funds andVNQ.
(05:35):
That's my real estateinvestments.
You know, I thought aboutputting together a real estate
empire but I just decided itwasn't worth the additional work
for me.
So I think you've got to matchyour desire, your ability to
invest in real estate to whereyou should be on that spectrum.
And I think a lot of peoplekind of shotgun and they own a
little bit of this and a littlebit of that and a little bit of
(05:57):
this.
Well, that's fine in thebeginning, but after you have
two or three or four of those, Ithink you got to dial in what
you like, right.
Do you like running short-termrentals?
Do you like, you know, gettinglandlord style calls?
Do you hate not having thecontrol with a syndication or a
(06:17):
private real estate fund?
Does that lack of controlbother you?
You got to look at all thosefactors and decide where you fit
on the spectrum.
And I think if you matchyourself well on that spectrum
you'll be happy with your realestate investments.
But your place on that spectrumis not the same as somebody
else's place.
Speaker 1 (06:40):
Yeah, do you want to get those?
Speaker 3 (06:41):
phone calls.
Man, I feel like there's atherapy session over there, I
know.
Well, you know it is somethingto think about, right, because
one of the things you mentionedlocums, right, and we often get
the question of why did youchoose to do locums, how do you
do it?
And so, you know, I was talkingwith a colleague of mine and
she does full scope OB and shewas just at her wit's end
because the day was busy and shejust could not see, you know,
(07:04):
in the future, when she was notgoing to be this busy again,
whereas I'm coming in andrelieving her doing locums, and
you know, I tell her, listen,you know she had some, she had
some notes that needed to bedone.
That was some nursing notes.
I'm like, you know what, gohome, I can do those things.
And she's like, oh my God,thank you so much.
And I said, well, you know Iwork a month at a time, so you
(07:26):
know it's going to be a hardweekend, but I have a month to
recover.
You don't just go home.
And so we started talking alittle bit more about just kind
of the lifestyle, and it soundslike it's kind of the same thing
with real estate, right, youhave to figure out what you want
your life to look like firstand then start cherry picking
(07:47):
the things that actually workfor you.
So if syndication is a thingthat works for you, then fine.
Understand that there are goingto be pros and cons to anything
that you do, but you have to beable to do that.
And so he asks me if I want toget those phone calls because we
have a property right now whichour property manager is.
(08:10):
I won't call her a nightmare,but she's not the hardest thing
to hire.
Speaker 2 (08:15):
It's the hardest thing especially if you only
have one or two or three doorsor something like that Exactly.
Speaker 1 (08:23):
We're talking about property managers here.
Oh my goodness.
Yeah, that could be crazy.
Speaker 3 (08:27):
It's tough, and so I'm.
I'm talking about potentiallytaking over that property.
Now it is somewhat of a longerdistance, but, sorry, my son
just walked into the room.
It is a bit of a longerdistance for us.
But you know, I'm asking myselfis that what I want to do, with
(08:47):
two small children, you know, ahusband who works and travels,
going away?
Is that something that I wantto do?
Because if I get that call inthe middle of the night and my
husband is away and I have mykids at home, what am I going to
do?
So, yeah, this has been areally good topic to discuss,
because now you've got methinking, jim.
Speaker 2 (09:09):
Yeah, well, I mean, here's the deal, right.
I think the worst place to beas a direct real estate investor
is in the one, two, three doorkind of space, because at one,
two, three doors you're like oh,I can manage this.
And, property manager, it'shard to get a really good one
and they charge so much, and Ican still do it myself.
Well, that's a hard space to bein, right?
(09:30):
When you have 15 doors, or youhave 20 doors, you're like of
course I can't manage thismyself, of course I have to have
a property manager.
And now you're going to aproperty manager with 20
properties.
All of a sudden, they're muchmore interested in your business
.
You end up with a betterproperty manager, you got some
economies of scale.
You have to put some systems inplace that reduce your hassle,
(09:54):
whereas you were just winging itwith two properties, you know,
and so I.
I think that's a really a badspot to be in with just a couple
of properties.
I think what you want to do iseither go okay, this is what
we're going to do.
We're going to build thisempire and we're going to get it
to 15 or 20 or 30 properties,and uh, or or, or you just don't
(10:14):
do it.
You do private stuff, you knowyou do.
You do syndications, you doprivate funds, you do VNQ, you
do whatever.
Uh, I think that's a toughplace to be, and I think that's
where a lot, of, a lot of docsend up is, with one or two or
three properties, and then theyhave these dilemmas that you're
facing now.
So I think you guys just got adecision to make one way or the
other.
You either got to build abigger empire or you got to
(10:34):
realize that real estate's cool,but you're not the direct real
estate people.
Speaker 3 (10:39):
Yeah.
Speaker 2 (10:39):
Yeah, got a lot to talk about.
Speaker 3 (10:41):
That is no.
It's a lot to consider.
I think I've made my decision.
Speaker 1 (10:45):
I'm scared actually.
Jim, thank you very much forscrewing us up.
Thank you, there's going to bea quiet drive home.
Speaker 2 (10:53):
There's one other cool option out there that I've
got an advertiser.
I don't know if it's okay tomention or not.
Bleep this out If it's not.
It's a company called Southernimpressions.
They advertise on my blog andwhat they do is they do turnkey
properties.
So you're, I'm not buying aproperty in Utah now where I
live.
I and they build the house torent, then they put a tenant in
(11:17):
it, they sell it to me and I ownthe property.
So I have control of when it'ssold and any big upgrades, the
big decisions, but none of thesmall decisions.
They handle all that.
They do all the management.
When I'm ready to sell, theysell it.
You know it's turnkey.
I literally could buy a dozen ofthese properties and never see
them in my life, never get acall about them in my life, and
(11:39):
I think for somebody that reallywants the unique tax benefits
to owning the propertiesyourself and having that high
level of control over them, butdoesn't want a management
nightmare, that's something toconsider.
Plus, you get out of whateverhigh cost area you're in.
You know I mean buying a localplace here in Salt Lake now is
starting to get crazy.
(12:00):
You know the average home hereis six or seven hundred thousand
or whatever.
Salt Lake, yeah, it's gettingexpensive now, and so that would
give me a chance to go to aless expensive market where
instead of buying one propertyyou could buy three, you know,
and have a little bit morediversification that way.
But something to consider, Iyou know, another place on that
spectrum is a turnkey rental.
Speaker 3 (12:22):
That's true.
That's something we had inKansas City.
Speaker 1 (12:25):
Well, we did Remember that was.
It was big in Kansas City.
Speaker 3 (12:28):
Oh right, right, right.
Yeah, it was big, Like severalyears ago we were looking in
Kansas City, that was one of thebig places.
And then Nashville, tennessee.
Speaker 1 (12:34):
Also, we went to med school in Kansas City, so we
were really aware of, like youknow, the neighborhoods really
well.
And then, several years into it, while we were attendings, we
noticed that, you know, westarted getting like people were
saying, yeah, we'll rebuildthis property there was
neighborhoods that we used todrove up.
Speaker 3 (12:50):
They rebuilt his property.
They rebuilt my property.
Where he rented man.
Speaker 1 (12:54):
it was bad but it was cheap.
It was like $200.
How much was it?
Speaker 3 (12:57):
$200 something.
Your rent was $300.
Speaker 1 (13:00):
And this was what 2006?
.
Yeah, yeah, yeah, 2006.
Speaker 3 (13:05):
Yeah, 2006 is when we left, yeah, and the rent was
$300.
For what A two bedroom, onebedroom apartment, something
like that.
Speaker 1 (13:12):
It was bad.
Speaker 2 (13:14):
The tricky part about rentals like that is your
tenants, right.
Yeah, tenants that can onlyafford $300 rents Right.
That's a different person thanyou know you might get $1,500.
Speaker 1 (13:27):
This landlord.
He was smooth with it.
He was able to keep this housewithin the med school for
decades.
Yeah, you know.
So you know.
I don't know how many peopledefaulted before I did, but I
can imagine, though you know,they're getting a guaranteed
check, a guaranteed refund check.
They're using that to pay himand so forth.
But I'm sure he had to chasethem down a couple of times, but
the profits could have beenthat high.
(13:47):
I mean, I'm sure he owned thatproperty for was good everyone.
This is dr knee yo.
This is the end of this segment.
I appreciate you for listening,but this ain't the end.
If you want more, go ahead andclick the next button on your
favorite podcast app.
Listen.
That's next for more banterbetween me and dr renee.
That's next for more topics.
(14:08):
That's next for more segments.
Listen.
Did you hit next yet?
Go ahead and click next.
Hit it next.
Peace.
What's advice that you're giving to these now
residents who are maybe in ahigh cost of living area?
Should I rent or should I justget like a duplex?
But with these interest rates Imean it's hella high.
What's your thoughts on thatstuff?
Speaker 2 (00:11):
The right answer if you're not going to be in a
place for very long historicallyis to rent and not buy.
If you look at the historicaldata, you got to be someplace
three to five plus years for itto appreciate enough to overcome
the transaction costs of buyingand selling and residency tends
to be three to five years long.
So it's always been a gamble tobuy as a resident.
(00:32):
Now there are times when itpays off.
If you bought a house when Istarted residency in 2003 and
you sold it when I leftresidency in 2006, you might've
doubled your money.
Speaker 1 (00:41):
Right before the bubble.
Right before the bubble?
Yeah, right before the bubble.
Speaker 2 (00:44):
But if you came in and replaced those residents.
You bought a house in 2006 andyou tried to sell it in 2009.
Where were you then?
Speaker 1 (00:52):
So you know a lot of what we're discussing.
You know I'm basing it off ofthe article that you put out
back in March 14th the mostcommon questions I get asked by
young doctors.
We'll put it in the show notes.
Really good article that youwrote.
So I'm going to take a momentto be vulnerable and kind of
talk about what's going on withus Two physician couple, right,
(01:12):
renee OB I'm trauma surgery.
We podcast, we have otherbusinesses, but we also have a
real estate business that we'repretty proud of, right.
But also, at the same time,there's a lot of work that goes
along with it.
Right, there's a lot ofbookkeeping that you have to
keep up with the second jobaspect of real estate investing.
Right, right.
(01:33):
So you start to get to thepoint where we we sometimes
think about, or at least I'mthinking about.
I don't know if you want toverbalize that, but like is the
juice worth the squeeze, rightIs that?
Speaker 3 (01:42):
how you say it, or is the squeeze worth the juice.
Whichever way, is the juiceworth the?
Speaker 1 (01:45):
squeeze Right, you know.
So you know we have, we'reinvesting, we're index funding
our way through this.
We also have stuff that'sinvested in, you know we're
using, you know, real estateexcuse me in Vanguard real
estate funds.
You know so we have investmentsin there, we have a syndication
, but keeping track of all ofthat, like you said, is like a
(02:06):
second job in itself.
What, like when you are talkingto, let's say, like young
attendings or even midattendings, with the way how
things are now, like, what kindof advice are you giving them?
Because there's always thiscraze of you know, yeah, you're
a full time doctor, Right, andthen you still got home life,
and then you also have theseside hustles.
(02:26):
There's got to be a way toprioritize all of this stuff.
What's your advice in terms ofprioritizing?
Making sure that you don't gettoo overleveraged in real estate
, making sure you don't get too?
Do you know where I'm goingwith all of this?
Speaker 2 (02:38):
Yeah, yeah.
I think this is a commondilemma among docs, particularly
entrepreneurial kind of docslike yourselves.
How do we do all this?
What's the right balance for us?
And I think there's a fewconcepts that are worth talking
about.
The first one is real estateinvesting in general, right, a
real estate investing is aviable pathway to wealth.
(03:00):
In fact, it might be one of thefastest pathways to wealth with
the reasonable amount ofleverage and reasonable amount
of work.
In fact, I think maybe thefastest way to financial
independence is actually to comeout of residency.
Do all of your physician workas a locum tenens and put all
the money you can scrape out ofthat that you're not spending
(03:22):
because hopefully the locum'scompany is paying for most of
your living expenses.
Take all the money you canscrape out of that that you're
not spending because hopefullythe locums company is paying for
most of your living expenses.
Take all the money you canscrape out of that and build a
short-term rental empire.
I actually think that's thefastest way to financial
independence.
I think it could probably bedone relatively reliably in
about five years.
I really do, but it's a lot ofwork.
(03:43):
It's not the lifestyle most ofus would choose.
There's a lot of downsides toit.
There's some risk there.
You're going to have someleverage risk as well, but
that's probably the fastest wayout of medicine that I can think
of.
That said, I don't think that'swhat most people do.
I think most people are like you.
They get all excited about realestate.
They're like look at all thesecool people doing all these cool
(04:03):
things with real estate.
Let's get us some of that realestate.
And then they're forced to tryto decide how they're going to
invest in real estate.
And there's all these differentways to invest in real estate
that are totally reasonable.
Right At one end of thespectrum is VNQ.
Right, it's the Vanguard realestate ETF.
Right, you're buying 120 or 140companies all this publicly
(04:28):
traded real estate.
You're very diversified.
It's very liquid.
It's very passive, it's veryeasy.
Right At the other end of thespectrum, you're buying
properties with nothing on themand you're getting permits from
the county and you're buildingthe place and you're renting the
place and you're managing theplace and you know when you
decide to sell the place, you'reexchanging it for another real
(04:49):
estate.
You know property and you know,and there's all this other
stuff in between.
You know private funds andsyndications and turnkey
properties and short-termrentals and long-term rentals
and all this stuff in between.
The most important thing is tomatch you and how you want to
invest in real estate to whereyou fit on the spectrum.
Speaker 1 (05:10):
And in my case, I'm a busy guy.
Speaker 2 (05:12):
I'm doing white coat investor stuff.
I'm still practicing medicine.
I want to be out adventuring inthe world.
I'm living this post-financialindependence life.
I don't want to spend all mytime working.
I chose the very passive side ofthat spectrum.
I'm in some passive privatereal estate funds.
I have a few syndications thatI'm just waiting to go round
trip, mostly private funds andVNQ.
(05:35):
That's my real estateinvestments.
You know, I thought aboutputting together a real estate
empire but I just decided itwasn't worth the additional work
for me.
So I think you've got to matchyour desire, your ability to
invest in real estate to whereyou should be on that spectrum.
And I think a lot of peoplekind of shotgun and they own a
little bit of this and a littlebit of that and a little bit of
(05:57):
this.
Well, that's fine in thebeginning, but after you have
two or three or four of those, Ithink you got to dial in what
you like, right.
Do you like running short-termrentals?
Do you like, you know, gettinglandlord style calls?
Do you hate not having thecontrol with a syndication or a
(06:17):
private real estate fund?
Does that lack of controlbother you?
You got to look at all thosefactors and decide where you fit
on the spectrum.
And I think if you matchyourself well on that spectrum
you'll be happy with your realestate investments.
But your place on that spectrumis not the same as somebody
else's place.
Speaker 1 (06:40):
Yeah, do you want to get those?
Speaker 3 (06:41):
phone calls.
Man, I feel like there's atherapy session over there, I
know.
Well, you know it is somethingto think about, right, because
one of the things you mentionedlocums, right, and we often get
the question of why did youchoose to do locums, how do you
do it?
And so, you know, I was talkingwith a colleague of mine and
she does full scope OB and shewas just at her wit's end
because the day was busy and shejust could not see, you know,
(07:04):
in the future, when she was notgoing to be this busy again,
whereas I'm coming in andrelieving her doing locums, and
you know, I tell her, listen,you know she had some, she had
some notes that needed to bedone.
That was some nursing notes.
I'm like, you know what, gohome, I can do those things.
And she's like, oh my God,thank you so much.
And I said, well, you know Iwork a month at a time, so you
(07:26):
know it's going to be a hardweekend, but I have a month to
recover.
You don't just go home.
And so we started talking alittle bit more about just kind
of the lifestyle, and it soundslike it's kind of the same thing
with real estate, right, youhave to figure out what you want
your life to look like firstand then start cherry picking
(07:47):
the things that actually workfor you.
So if syndication is a thingthat works for you, then fine.
Understand that there are goingto be pros and cons to anything
that you do, but you have to beable to do that.
And so he asks me if I want toget those phone calls because we
have a property right now whichour property manager is.
(08:10):
I won't call her a nightmare,but she's not the hardest thing
to hire.
Speaker 2 (08:15):
It's the hardest thing especially if you only
have one or two or three doorsor something like that Exactly.
Speaker 1 (08:23):
We're talking about property managers here.
Oh my goodness.
Yeah, that could be crazy.
Speaker 3 (08:27):
It's tough, and so I'm.
I'm talking about potentiallytaking over that property.
Now it is somewhat of a longerdistance, but, sorry, my son
just walked into the room.
It is a bit of a longerdistance for us.
But you know, I'm asking myselfis that what I want to do, with
(08:47):
two small children, you know, ahusband who works and travels,
going away?
Is that something that I wantto do?
Because if I get that call inthe middle of the night and my
husband is away and I have mykids at home, what am I going to
do?
So, yeah, this has been areally good topic to discuss,
because now you've got methinking, jim.
Speaker 2 (09:09):
Yeah, well, I mean, here's the deal, right.
I think the worst place to beas a direct real estate investor
is in the one, two, three doorkind of space, because at one,
two, three doors you're like oh,I can manage this.
And, property manager, it'shard to get a really good one
and they charge so much, and Ican still do it myself.
Well, that's a hard space to bein, right?
(09:30):
When you have 15 doors, or youhave 20 doors, you're like of
course I can't manage thismyself, of course I have to have
a property manager.
And now you're going to aproperty manager with 20
properties.
All of a sudden, they're muchmore interested in your business
.
You end up with a betterproperty manager, you got some
economies of scale.
You have to put some systems inplace that reduce your hassle,
(09:54):
whereas you were just winging itwith two properties, you know,
and so I.
I think that's a really a badspot to be in with just a couple
of properties.
I think what you want to do iseither go okay, this is what
we're going to do.
We're going to build thisempire and we're going to get it
to 15 or 20 or 30 properties,and uh, or or, or you just don't
(10:14):
do it.
You do private stuff, you knowyou do.
You do syndications, you doprivate funds, you do VNQ, you
do whatever.
Uh, I think that's a toughplace to be, and I think that's
where a lot, of, a lot of docsend up is, with one or two or
three properties, and then theyhave these dilemmas that you're
facing now.
So I think you guys just got adecision to make one way or the
other.
You either got to build abigger empire or you got to
(10:34):
realize that real estate's cool,but you're not the direct real
estate people.
Speaker 3 (10:39):
Yeah.
Speaker 2 (10:39):
Yeah, got a lot to talk about.
Speaker 3 (10:41):
That is no.
It's a lot to consider.
I think I've made my decision.
Speaker 1 (10:45):
I'm scared actually.
Jim, thank you very much forscrewing us up.
Thank you, there's going to bea quiet drive home.
Speaker 2 (10:53):
There's one other cool option out there that I've
got an advertiser.
I don't know if it's okay tomention or not.
Bleep this out If it's not.
It's a company called Southernimpressions.
They advertise on my blog andwhat they do is they do turnkey
properties.
So you're, I'm not buying aproperty in Utah now where I
live.
I and they build the house torent, then they put a tenant in
(11:17):
it, they sell it to me and I ownthe property.
So I have control of when it'ssold and any big upgrades, the
big decisions, but none of thesmall decisions.
They handle all that.
They do all the management.
When I'm ready to sell, theysell it.
You know it's turnkey.
I literally could buy a dozen ofthese properties and never see
them in my life, never get acall about them in my life, and
(11:39):
I think for somebody that reallywants the unique tax benefits
to owning the propertiesyourself and having that high
level of control over them, butdoesn't want a management
nightmare, that's something toconsider.
Plus, you get out of whateverhigh cost area you're in.
You know I mean buying a localplace here in Salt Lake now is
starting to get crazy.
(12:00):
You know the average home hereis six or seven hundred thousand
or whatever.
Salt Lake, yeah, it's gettingexpensive now, and so that would
give me a chance to go to aless expensive market where
instead of buying one propertyyou could buy three, you know,
and have a little bit morediversification that way.
But something to consider, Iyou know, another place on that
spectrum is a turnkey rental.
Speaker 3 (12:22):
That's true.
That's something we had inKansas City.
Speaker 1 (12:25):
Well, we did Remember that was.
It was big in Kansas City.
Speaker 3 (12:28):
Oh right, right, right.
Yeah, it was big, Like severalyears ago we were looking in
Kansas City, that was one of thebig places.
And then Nashville, tennessee.
Speaker 1 (12:34):
Also, we went to med school in Kansas City, so we
were really aware of, like youknow, the neighborhoods really
well.
And then, several years into it, while we were attendings, we
noticed that, you know, westarted getting like people were
saying, yeah, we'll rebuildthis property there was
neighborhoods that we used todrove up.
Speaker 3 (12:50):
They rebuilt his property.
They rebuilt my property.
Where he rented man.
Speaker 1 (12:54):
it was bad but it was cheap.
It was like $200.
How much was it?
Speaker 3 (12:57):
$200 something.
Your rent was $300.
Speaker 1 (13:00):
And this was what 2006?
.
Yeah, yeah, yeah, 2006.
Speaker 3 (13:05):
Yeah, 2006 is when we left, yeah, and the rent was
$300.
For what A two bedroom, onebedroom apartment, something
like that.
Speaker 1 (13:12):
It was bad.
Speaker 2 (13:14):
The tricky part about rentals like that is your
tenants, right.
Yeah, tenants that can onlyafford $300 rents Right.
That's a different person thanyou know you might get $1,500.
Speaker 1 (13:27):
This landlord.
He was smooth with it.
He was able to keep this housewithin the med school for
decades.
Yeah, you know.
So you know.
I don't know how many peopledefaulted before I did, but I
can imagine, though you know,they're getting a guaranteed
check, a guaranteed refund check.
They're using that to pay himand so forth.
But I'm sure he had to chasethem down a couple of times, but
the profits could have beenthat high.
(13:47):
I mean, I'm sure he owned thatproperty for was good everyone.
This is dr knee yo.
This is the end of this segment.
I appreciate you for listening,but this ain't the end.
If you want more, go ahead andclick the next button on your
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Listen.
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