How Much One “Ordinary” Rental Property Has Made Me in the Last 6 Years

**Dave Meyer** (0:00)
Most banks will give you a line on your primary residence and stop there. Avon looks to underwrite the equity in your investment property, the second home you have, the property you hold in your own name, and put a line of credit against it on a Visa card. Same asset, same logic. Think about what this unlocks. Earnest money, the day a deal hits the MLS. A contractor, paid on Friday instead of next month. High rate balances you are already carrying, refinanced onto a line secured by equity you own, all at a fraction of the cost. With Avon, you can check your offer at no cost, with no impact to your credit score. There are no hidden fees, and because you own a home, you qualify for a rate that credit cards simply cannot offer. Avon has a 4.9-star trust pilot rating from over 8,000 verified customers. If you own property and you're financing your next move on an unsecured card or expensive short-term debt, you are overpaying for capital. Avon fixes that. Go to avon.com to discover your offer. Stop overpaying for capital. Avon accounts are arranged by Avon Financial Inc. and MLS number 2042345 Avon accounts are issued and held by Coastal Community Bank, member FDIC, Equal Housing Lender, and MLS number 462289 Avon cards are issued pursuant to a license from VisaUSA Inc. Terms and conditions apply, subject to credit and property approval. Eligibility and availability vary by state and property type. Summer bookings sound great until someone slips by the pool, gets hurt on your dock, or damages your property during a long holiday weekend. A lot of short-term rental investors don't realize their standard policy may leave gaps when it comes to short-term rental activity. That's why investors use Steadily. They offer landlord insurance built for real estate investors, including short-term rentals. And if you're a BiggerPockets Pro member, you'll also get 5% off your landlord insurance premiums. Visit biggerpockets.com/landlordinsurance to learn more. You know that thing where you discover a feature you wish your software had? And it turns out it already exists just on a different platform. Like, oh, you want rent payments processed in two days. Rent Ready does it. Oh, you want to block tenants from making partial payments mid eviction. Rent Ready does that too. Oh, you want full accounting and tax-ready reports without paying for a second tier. Rent Ready does it. And oh, you want tenant screening that doesn't overcharge your applicants. Rent Ready also does this. Basically, if you've ever complained out loud about your property management software, Rent Ready probably already built the fix. It's $12 a month. You're welcome. Sign up right now for $50 off your first year of Rent Ready with promo code BPcash. BiggerPockets Pro members get it completely free. Sign in through your pro account at rentready.com/biggerpockets.
That's rent redi.com/biggerpockets.

**Henry Washington** (3:01)
Real estate investors love to talk about things like cash flow or appreciation, but they rarely talk about the total impact that a single property has on your net worth. You may generate a little bit of cash flow from real estate investments in year one, but the real power comes from buying a great asset, holding it, and letting it run its course. And when you actually do the math on a property you've owned for 5, 10, or 20 years, the results are eye-opening. Every one ordinary rental property can create hundreds of thousands of dollars in wealth. Today, Dave and I are breaking down a couple of properties from our own portfolios to prove that point. These are actual deals that we own and manage, and we're going to share all the real numbers.
Are there bumps in the road? Of course, as you're about to hear, you can overpay for a property. Renovations can go over budget, but real estate is far more forgiving than you think. If you buy a good asset, play the long game and stay patient.

**Dave Meyer** (4:04)
Hey, everyone. Welcome to the BiggerPockets Podcast. I'm Dave Meyer, joined by my friend and co-host, Henry Washington. Henry, what's up, man?

**Henry Washington** (4:13)
What's going on, buddy? Good to be here.

**Dave Meyer** (4:15)
Yeah, it's going to be a good show. We're doing something a little bit different today, and I'm excited to talk about it because we often discuss acquisitions, buying new properties, we debate the benefits of cash flow versus appreciation, but we don't always talk about what might be the most important thing in real estate, which is the cumulative benefit of real estate and how a single property contributes to your portfolio, to your net worth, to your financial freedom mission over time. So that's actually what we're going to be doing today. Henry and I have each wrote down some information about a single deal that each of us has done in the past, and we're going to talk about the ways that a single deal evolves, and changes, and grows over time. And I think this is going to help everyone not just help manage their individual properties and the things they already own, but going back to the acquisition phase, help people pick which deals they should be buying today to maximize that benefit and advantage over time.