BiggerPockets Real Estate Podcast - Can You Still Find On-Market, Cash Flowing Rentals in 2024? (We Found Some)

Episode Date: November 6, 2024

Can you invest in real estate with just $75,000? And not only invest but can you find cash-flowing rentals in solid markets with long-term profit potential without spending six figures? Yes, to both. Today, we’re proving it’s more than possible because we’re finding on-market rental properties for sale that can be bought, renovated, and rented with a $75,000 (or less) investment. These are LIVE deals, meaning you could make an offer on them right after this podcast airs (seriously!). To help us out, Dave asked fellow investors Ashley Kehr and Henry Washington to bring a deal to the show that: 1. Has an all-in cost of $75,000 or less 2. Is on-market (on the MLS) 3. Isn’t a house hack (you don’t have to live in the property). Dave found his own deal and brought it along, too. So today, we’re sharing three actual deals in three solid real estate markets, all that you can invest in with $75,000 or less. We found rental properties that not only cash flow hundreds of dollars a month but come close to (or beat) the 1% rule, AND one is already renovated, meaning you just need to find renters, and you’re already making money. Don’t let the naysayers fool you—this is PROOF you can find good rental properties even in 2024.  In This Episode We Cover: How to invest $75,000 in real estate if you want cash-flowing rental properties  Three distinct real estate markets that all offer below-average rental property prices  How much to keep in cash reserves for your first investment property  “Value-add” potential you can spot that’ll help you boost equity in your property  The one cost that you really need to check before you buy in a new market  Key indicators that point to a real estate market growing (or slowing)  And So Much More! Links from the Show Join BiggerPockets for FREE Let Us Know What You Thought of the Show! Invest in Turnkey Properties with REI Nation Grab Henry’s New Book, “Real Estate Deal Maker” Find an Investor-Friendly Agent in Your Area Top 10 Real Estate Markets for Cash Flow in 2024 Connect with Ashley Connect with Henry Connect with Dave Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-1040 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [e-mail]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Despite what you hear, you can find great deals on the market all across the country right now. And today, we're going to prove it. Hey, everyone, it's Dave. And today's show is a simple challenge. I am joined by Henry Washington and Ashley Care, and I've asked each of them to find one deal that they would actually do right now, or consider right now, on the MLS if they had $75,000 to invest. Hey, Ashley, thanks for joining us again. Yeah, Dave, thanks for having me. And Henry, always good to have you back.

What's up, buddy? Glad to be here. I love doing the shows, the three of us. I feel like it's always supposed to be research and we just turn it into a competition. So I'm looking forward to competing with you two to find the best deal on the market right now. And the reason we're doing the show is that I think a lot of people may hear or think that finding solid investment properties right now, you need to pound the pavement for off-market deals or you need to start with hundreds of thousands of dollars. both of those are good things to have. But they're not the only ways to get started and not even the ways I necessarily recommend for most people. So let's talk about some real deals that we found.

The parameters for this challenge was to start with a hypothetical $75,000. We had to find deals that were on the MLS and we had to account for things like closing costs, cash reserves. And maybe if you were going to do a renovation in your deal, you have to account for that too. and we also, because we talk about house hacking frequently on the show, decided that this could not be a house hack. So let's jump into the deals, Ashley. I'll start with you. How did you go about this challenge?

Where did your thinking and research start? Yeah, so I took the rookie mindset of I want kind of low risk if this was my first deal and some kind of security safety net. So I looked within my market. So, you know, as a rookie investor, I'm building my team within my market because maybe I already have connections, opportunities. So I looked within the Buffalo area and that kind of gave me a sense of comfortability, I guess. So I narrowed in on a neighborhood West Seneca. So I actually have some investments really close to that in South Buffalo right now. And this West Seneca area is

kind of the overflow, I would say, from the higher end area of South Buffalo. Okay. So I found a single family home. One thing that I was looking for is that the price point was under $200,000. So I'm not spending all of my $75K just on the down payment. And then I was also looking for a property that had very light value add. So I actually came across a single family. home that was a two-bed, one bath, listed at 180,000. The thing that stood out to me was that it's

1,220 square feet, which is actually pretty big for a two-bedroom house. So I'm going into this thinking that I could add a third bedroom to this property. So just judging by the pictures, it looks like on the second floor you could turn the one bedroom into two bedrooms because it's so massive. Oh, yeah, for sure. Putting in a little bit of value add of adding a wall, adding a closet, adding a door, and then the rest of the property, you know, I put into like my rehab budget to paint it. So I had about 5K of expenses, just very, very minor because it's pretty much turnkey and rentable as it is. Okay. So let's break down some of that. So you said you wanted it under 200,000. How did you come up with that number specifically? Yeah. So I didn't want to

spend all of my 75,000. So I'm looking at if I'm coming in and doing 20% down on the property. So buying at 180,000, this would be about $36,000 down. So that still leaves me a lot of money for reserves and then closing costs. I calculated about like three and a half percent. So that's around $6,300, $5,000 in the rehab, creating that third bedroom and just touching up some paint, redoing some paint in the rooms just to freshen it up for about 47,000 I'm spending of that 75,000. All right. You're coming in under budget. That's very, very impressive. So part of that reasoning was that I would have that extra money left over for reserves. Okay. Yeah. And that way it would make me feel more secure on my first deal that if something really bad happened, like the furnace goes in the first.

week of ownership, I have that money to put into the property. So I'm saving that for capital improvements on the property. And my kind of exit strategy on this is to hold it for five years and then to sell it, maybe do a 1031 exchange scale up into the next property. Yeah, I love that idea about the reserves because I'm looking at the photos here. It actually looks like a pretty nice house. It seems like it's in close to renting condition, at least in the interior. It's kind of hard to tell. obviously from photos, but probably, you know, an older house, you're going to need some reserves there. Ashley, once you add a third bedroom, what do you think you could get for rent here?

So I actually talked to a couple other investors as to what they rent there's for. And once turning it into a three bedroom, I could get around 1600 a month for rent, 1650 around there, especially with it being a single family home. A lot of the apartments that were three bedrooms were going for around. $1,500, but the single-family home gave it more value that you're not in an apartment complex. Yeah, it has a big lot. So like a 6,000 square foot lot. There's a garage on the property, too. So there's definitely some nice amenities here. So would that cash flow at $1,600, $1,650 with the purchase price and the renovation costs? So you're looking at a total monthly payment for your escrow,

so your property taxes, your insurance, your principal in your interest of about $1,000,000. 254. Okay. So definitely not a ton of cash flow. And then if you count in 15% for reserves, so repairs, maintenance, cap X, vacancy, that's about another 250, that 15%. So that only leaves $150 of cash flow. But since I already have my reserves in place that I'm already banking on,

I'm not going to be saving that 250. So then it ends up being about $400 cash flow a month. Oh, that's great. That's a very solid deal. But one of the things that really sold me was the appreciation in this property. As far as in the last five years, this area has seen 63% appreciation. Wow. So just modestly, like obviously we've had a crazy market the last five years, but just modestly, if, say, there was only 45%, that would be $81,000 in appreciation plus $10,000 mortgage

pay down plus say I'm only getting $200 in cash flow a month that's another $12,000. So it ends up being in five years you would have $103,000 from mortgage pay down your appreciation in the property and then the cash flow you've gained over the years. So and that's investing, what was it, like 60 grand total? Yeah. So you're like doubling up your investment basically. Yeah. So also this area, they have a upstate Niagara, which is like a milk and dairy processor and they are adding an expansion to their plant where it's going to be a 54% increase in jobs too. Wow.

That's in that neighborhood. And you said also this neighborhood was sort of on the fringe of one of the nicer, more established neighborhoods as well? Yeah. That's always good. Like if you took this house and transplanted it into that South Buffalo area, do you have any sense of what it would cost? It definitely wouldn't be a 179,000.

It would definitely be more like probably 225, I would say. Yeah. So that, I mean, that gives you, obviously, when we look at appreciation, it's backward looking. But when you think of it sort of in that way, it shows you that there is more room for appreciation in nearby neighborhoods that prices are, you know, was that 30% higher, 40% higher. So that is definitely encouraging for appreciation prospects. All right. Well, well done, Ashley, on this challenge. One question for you.

You know, we gave you this assignment looking on market. Do you think these types of deals or on-market deals in Buffalo are feasible for rookie investors or any sort of investor? Yeah, because I think this is a safe deal. It's a low risk. You're in an area that's getting a little bit of cash flow. If you have the $75,000, you're not using all of your money and, like, scraping by that you have that. And then also, I think, like, the little bit of cash flow, the appreciation in this area, the job growth that's happening there. even like people that were moving into this neighborhood.

I don't remember the percentage in the last year, but like that was an increase in population of people moving into the area too. So I would say especially if you're in the Buffalo market and you have already some team members in place, that this would be a good area and a good property to look into. Awesome. Well, thank you. Mission accomplished on this deal. You were able to find an on-market deal for under $75,000.

You are in that Lake Effect cash flow area, though, so they do have a leg up in your own home market. All right, it is time for a break. Stick with us on the Bigger Pockets Real Estate podcast. You just realized your business needed to hire someone yesterday. How can you find amazing candidates fast, easy? Just use Indeed. When it comes to hiring, Indeed is all you need. That means you can stop struggling to get your job notice on other job sites.

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Henry, does this assignment just in general go against everything you believe in? I know you're finding off-market deals, and that's why I wanted you to come and make you do this. Absolutely. I much prefer going direct to seller, and I much prefer to invest in my backyard. But since the challenge was to have or find a deal on the market, That's not easy to find in my backyard. So I had to get all outside of my comfort zone. All right.

Well, where did your uncomfort zone take you? Well, I did have a bit of a leg up being that, you know, I do a lot of research for multiple shows that we record. And so I have looked into this market previously and took it as an advantage to go ahead and do it again. And so I chose racing Wisconsin. Of course you did. Of course you did. Surprise, surprise. If you don't listen to the show or on the bar gate, Henry and I, for some reason,

are always talking about Racine, Wisconsin. It just comes up in like every conversation. I first learned about it when I was watching, like, an episode of my first million or whatever it is on HGTV where people win the lottery and then try to buy a house. And these people were buying in Racine and, like, just what I saw of the town and the price points. And I was like, man, this looks like a cool place. And then it was right in between Milwaukee and Chicago. And so part of the reason I chose the market is because of its proximity to Milwaukee and Chicago.

There's a heavy working class population that lives there, but works either in the Milwaukee or Chicago area for a lot of the major corporations that are headquartered there. Also, SC Johnson is headquartered in Racine, Wisconsin itself. Oh, really? There's a big working population. And so there's heavy demand for rental property. but the price points are really, really affordable. And so you can get singles and multis on the market that cash flow there. Now, the one downside that you would say for a market like Racine, Wisconsin is that it doesn't

have a lot of appreciation or hasn't historically had a lot of appreciation. But I feel like it's a really good time to be buying in this market because the city has been investing in infrastructure. in and around the corridor in between Milwaukee and Chicago. So they're putting in more transportation options to take people to and from those cities. You've got other companies like Amazon building warehouses in and around that area. There's just a lot of growth. And then the city's revitalizing the downtown areas.

They're pouring a lot of money into growing this area because the population is starting to grow because some people are moving away from the bigger cities to more. affordable areas so that they can afford to buy. And so I think appreciation may be coming in the future. I know it's speculation, but the price points are so low and you can get the cash flow that it makes it reasonable to go ahead and invest and have some speculation because you're going to be making cash flow in the meantime. Well, it's, yeah, it's not speculation if there's another way to make money. Like the way I think of it is like when you're, if you're only counting on appreciation, at least to me, that's speculation. If you are making,

money elsewhere, either through value ad or through cash flow. And then the market appreciation is like the cherry on top. That's a different situation in my mind because you're probably through cash flow and amortization still doing better than the stock market or what you would do with your money elsewhere. So this is just like a better use. And to your point about investments, like Henry and I were actually just talking about this yesterday, race, and so I was Googling it, like businesses that were moving there. And just in the last year, year, Microsoft announced it was investing a billion dollars into a data center there. We saw other big companies like central storage warehouse. I didn't even know what they were, but they're

some big company investing millions. The one that really got me is Nestle USA announced a $70 million investment to expand their cookie dough operation in Racine, Wisconsin. That is enough. If my wife hears me say that, we're going to be moving to Racine, Wisconsin. So, I'm all in on this. This one makes a lot of sense. So you explained the reasoning behind Racine well. Like, what do the deals look like in this area? Yeah, man, the price points are fairly low. So what I was looking for was a I wanted to find a multifamily, but I wanted to find one that didn't need a ton of work that was pretty much turnkey and could make money from day one, but maybe had some potential for value add because, again, I don't live there. I haven't built a team

there yet. And so I didn't want to have to take on a big construction project if I didn't need to. And so I found a duplex. It's a five-bed currently five-bed three-bathroom duplex in Racine, Wisconsin. And the list price, the price has recently dropped. So it's down to $147,000 for this purchase. Now, this is one where if this was something I was going to go forward and buy, you have to get some boots on the ground and go and go and take a look at this. Because looking at the pictures and reading the description, it's hard to tell kind of how the unit mix is. It seems on its surface like it is maybe three or four bedrooms upstairs with two bathrooms. And then one bedroom, maybe two downstairs and a half bath downstairs. And so a couple of ways to look at it.

So with a $147,000 price point, if I'm buying it and putting 20% down, that's about a $30,000 down payment that you would have. to put down, but a four bedroom in that market's probably going to rent for 1,600, 1,600. So just alone. Just one of the units is a 1% rule. It's 1% rule, right? So if I do nothing, I'm probably sitting pretty good. Mortgage payment's going to be somewhere around 8, 850, plus you got your expenses and whatnot.

So you're probably doing okay on the cash flow perspective with just the one unit. Now, if you go and spend $10,000 to $15,000, maybe less depending on how, you know, how much it's really going to take you to get that work done to add a shower or a bathtub in that downstairs bathroom because there is space down there that's not accounted for in the square footage. So you're able to turn that half bath into a full bath and then you've got a two one downstairs and you can get about $900 a month rent out of that. And then you're really cooking with gas on the cash flow. So if you do that, Henry, 150, it's like 37. 500, exactly. I just did that on a calculator, for is the down payment. So you have basically double that. Yep. So you have another 37,000 for your cash reserves, your down payment. And then given what Henry was saying, he doesn't see in this deal. And so if he needs to go and actually put in 10 grand to it, he has plenty left over. Absolutely. And then still have plenty left over for reserves. The other thing I wanted to look for,

was a lot of these homes in this market are going to be older homes. It's just the mix of properties that are around there. And so I didn't want to get myself into a situation where I've got high capex in the next three to five years. And so I wanted something where there wasn't a lot of the big ticket items that need maintenance. So I like that this property has a newer roof. I like that this property has newer siting. I like that this property has vinyl windows all the way around. So a lot of that big ticket stuff that can really eat into your cash flow is already taken care of. Yeah. And especially, you know, we've on the three of us have talked about Great Lakes region. A lot of the housing stock is super old. And so trying to find places that do have some of these key

upgrades can be challenging in certain markets, but it sounds like this one has some of those big CAPEX items that are already handled for you. Yeah, man. I think this is a pretty safeish investment, you know, that being that it's, you know, out of my comfort zone and terms of location and not having a team. I think you really got to be careful with some of those big ticket items on some of these older homes. But having something where that's covered, plus it's been remodeled inside as well. And cash flows as it sits, even if you don't have to add the bathroom, like all those are a win in my book. I love it. I mean, it sounds like this would be right for an investor who wants to prioritize cash flow, who doesn't want to do a lot of work,

maybe a little bit, like you said, like you'd have to get in there and find out. But if you wanted to invest out of state, this is a pretty good place to do it. I like the idea of being between two major cities. I have always loved the idea of like the satellite city philosophy, like you go between or close to some big cities because there's always overflow. They're usually more affordable. And over time, they just grow. So I think this one is fundamentally sound. And congratulations, man. And I know this was a big, this was a big moment for you looking at a deal, even pretending to look for a deal on market. It was like a big step for you. It was very uncomfortable. I'm still not quite great with it. But, you know, for my hypothetical $75,000,

I can do it. In Henry, too, another thing with your deal is that it just sold in 2022 for $100,000. So they do sell it at that $147. I mean, I don't know how much work was done or what they put into it. but like that's some appreciation right there. Absolutely. Absolutely. I think it's only going to get better there. It's time for a break. Stick with us on the Bigger Pockets Real Estate podcast. What if your CRM actually did the hard work for you? I know, crazy. ReSimply lets you pull seller lists, skip trace them at no cost,

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costs. And so when you think about that, it comes out to a price point. You can afford something at about $260,000, $275,000 if you're going to put 25% down, which me, as an out-of-state investor, I'm going to do that. And then I started going through some of the research and data sets that I have at Bigger Pockets, and I decided I would set an upper bound of the median home price at about $325,000. And if you're wondering why, I just said I could spend $2.75, and I'm looking for markets that have an average of $3.25, it's because I'm going to buy something below the average. And I think that's usually what I would try and do in these types of situations where you're looking for cash flow or you're looking for a value out opportunity.

You don't have to buy right at the middle. And if the median of a market is 325, it means there's going to be half of the deals are going to be cheaper than that. So I wanted to open myself up for that. I went through and looked for a bunch of different markets that met sort of just basic criteria for me, which are that price point. The population has to be growing. There has to be job growth. And I wanted to see something that had a reasonable chance of cash flow would give in the rent-to-price ratio. So I looked for something that was like 0.6 or above. And there is plenty of markets there. Just for everyone who's thinking, Henry, Ashley, and I have cherry-picked three markets. There was probably 70 that met those criteria. I don't know if all

of them would be great, but like there were 70 that met my list. And from those, I picked three markets that I would go in research. So the three I picked were Fayetteville, North Carolina. You guys know anything about that? I've heard it's good, right? I think there's like a military base there. It's like a big military town. So I checked that out. Clarksville, Tennessee, didn't know anything about that until I looked at it. And then Tulsa, Oklahoma. And good market. Yeah. So I looked first in Fayetteville because I just, I like the idea of North Carolina for some reason. Like there's just a lot going on there. But I couldn't find any deals there. Even though on paper, it made a lot of sense. There just wasn't a lot of inventory and the type of properties I'd be looking for. And so I just want to caution, even though I talk about. got data all the time, that that clearly doesn't tell you everything. It just helps you narrow down potential areas to invest in. But in honestly, 10 minutes of looking around in the bigger pocket steel finder, like, I just wasn't getting a good vibe for the type of properties that

I could afford there. Dave, what were you looking for? Was it like single family, small multifamily? Either. And the small multifamily was out of the price range. It wasn't, I couldn't find anything for 270. So then I started looking at single family homes. And it was good, but the rents were just too low. So like for a $200,000 property, I was seeing rents at like $1,200. Oh, you know, so. Wow. Yeah. Yeah. And even if you renovated them, you know, you could maybe get them to $1,500. So that just like wasn't passing the sniff test. So I moved on to Clarksville, Tennessee and sort of had the same thing there. Rents were even lower there. Clarksville does seem like an appreciation play. But my philosophy about out-of-state investing is to do what I call as like a hybrid market where you at least get a little bit of

cash flow and then you look for upside. And since both of those, I didn't think I could get it. I moved on to Tulsa, Oklahoma, and I found a great deal, like, within minutes. So what I found was a single family home. It is really close to the middle of Tulsa. And I don't know the market that well. But this is like a super nice house. Four bed, two bath, 1900 square feet. Recently renovated, everything looks brand new. I think it's vine. all playing flooring, but it looks super nice. The kitchen is really like an ideal kitchen. It has a nice two-story layout. Like I would live in this house. It's super nice. And it's on the market for just 210,000. So less than that national average. And the estimated rent for this is 2104. So it's right

almost exactly at the 1% rule. Now, the one thing I learned about Oklahoma is that insurance costs are very expensive there. I looked at that because I at one point was considering investing in Oklahoma City. And the average insurance there is like seven grand a year. It's crazy. Oh, my gosh. Yeah. Is that because of tornadoes or? Maybe I don't know anything about weather, but like, there's not that many. There's not that many. Yeah, right. Like, exactly. Like, maybe you get a couple every few years. And even when they come, they don't do the damage on the scale of like a wildfire or a hurricane. So I don't know what's going on there, but they're super expensive.

And even in Tulsa, insurance costs were six grand a year for a $200,000 house, which like as a ratio is insane. But even with that, if I could get that $2,100 bucks a month and I could pay $200 grand for it instead of $210, and I don't know if that's possible, but it's been sitting on the market for 45 days now, considerably longer than the average in that market. so suggesting it might be a little bit overpriced. I could get a cash on cash return of 5.6% on this, unlike a recently remodeled super nice deal

that probably would have relatively low CAPEX. I still put my normal CAPEX in there and assume that I would need to put in considerable amount of maintenance of CAPEX and still got 5.6% on this deal. So I thought this one was pretty encouraging. Yeah, I just Googled real quick, the insurance thing, and it says, like, Oklahoma is named

the most expensive state for insurance. And it said it was because of severe storms that have gone through as in like billion dollar payouts that insurance companies are having to do. And just like in the last year, there was eight huge severe storms where insurance company had huge payouts. And like most other states have to do with like two a year or something like that. Huh. I wonder if that's like in Colorado, you know, in Denver, you wouldn't expect it. But there's like really bad hail. And so insurance companies are always buying new roofs for people, essentially. because the hail damage,

it's something you don't really think about in terms of weather, but it can be, I mean, you can ask my car, it looks like a golf ball. It's pretty bad hail. So this looks like a house

that it was flipped because it's sold in 2023 for 87,000. Yeah, this is a flip. And I have bought flipped homes before with mixed results, but so I would definitely want to go

and get a good discussion with the person who flipped it and get a good inspection on there too. because sometimes people, you know, do the lipstick on a pig approach to flipping. Some people do good, good work. It depends who you get. But the property taxes look really cheap.

Yeah, actually, as you said, that really offset the price of the insurance. The taxes on this property for a year are 600 bucks. So when you look at insurance and tax together at $5,600 bucks, it's still a lot for a $200,000 property, but it's it averages out to a much better number. Here's some things I like about this property. It looks like they put all new windows in, all new vinyl windows in the house. So that's huge because this house looks like it has a lot of windows and that's a big expense. The things I would look out for on a property like this are that roof looks like it could be pretty old.

Okay. So you may have a Kappex roof expense coming up in the next five years and you got to get that tree away from that side of the house with the wind and the storms. You don't want that laying on your house. Oh, and the siding looks like it's still the original. Like they just painted it. Yeah, they put like some of that cedar plank on the bottom before, but most of it's original. To cover up the asbestos, I'm sure.

Yes. But I will say that with this price point, I set aside 15 grand for make-ready costs. So maybe it wouldn't buy a new roof and new siding, but hopefully one of those would be in good enough shape. If you go to the Google Street View, you can see the before, and it definitely is a huge difference. Boy. What? The Street View. Is that a good, oh, boy or bad, oh, boy?

It looked like it could have been a tear-down, buddy. I'd check that roof and that structure. So I'd check the foundation in that one, for sure. Oh, yeah. Okay. Yeah. There's a lot of plant life going on in the street view. Yeah, so, I mean, obviously we're just looking at these things on market, but you would have to.

of course, check these out a little bit more. I mean, some of the other houses on the street are actually pretty nice and manicured. It looks kind of like a mixed neighborhood. You would have to do some more research. Which could be great for appreciation. It's an area that's turning over. For sure. Yeah. And like there are a couple, like this one in Street View is run down. But the, you know, pride of ownership on some of the other places I'm saying are pretty high. People have well-maintained law and nice houses. So couldn't tell you for sure. But if you wanted to invest in Tulsa, you would hopefully do your due diligence. But hopefully this has been helpful to all of you, just seeing that these kinds of deals are possible. Each of us, I know, spent a little bit of time, but we're able

to find plausible deals in just a couple minutes with these parameters. If you're going to invest, again, do more research than we did. But this was just a fun game to see if we could find on-market deals that work. And I think the answer is yes. So Ashley, Henry, thank you goes so much for this challenge. I appreciate you doing the homework and sharing what you found with us. Dave, we really want to start having a winner at the end of the episode. Oh. I put a lot of work into their homework. Okay.

So for next time when you have us on a challenge, we need to have some definitive measurement. Well, I competed too. So I think we all need to vote, but we just can't vote for ourselves. Okay. Ashley, who would you vote for? Me or Henry? I'm going to vote for yours, Dave, because.

It was a couple red flags in Henry's was it was five-bed, three bath with only a thousand square feet. So I'm afraid some of that is not permitted. We'll need to be ripped out. That was a red flag for me. Then also it went pending twice and fell out of contract. Ooh, okay. So I'm going to go with Dave's deal. Henry, what's yours?

Would you vote for mine or Ashley's? I would vote for Ashley's. Okay. I think yours, the numbers pencil, but seeing that, Before I would want to go to the lid inspection. Check out that foundation and that roof. I think those could be big problems. Because it's not a huge difference from what they bought it from to what they're selling it for.

So like that would make me a little cautious too with your esteem too. Yeah. It's like, did you make no money on this? Or did you invest no money? Let's guess which one they chose. Well, Ashley, I think you're the winner. Although I love Racine, I do think you're just knowledge of your own market and knowing this neighborhood really well would make me feel like I wanted to invest in, if it were me investing

in one of these deals. I would pick that. So, Ashley. I will put on my crown until next time. One point for you. We'll have to keep a tally going forward to keep doing these challenges. But next time, I'm docking you if you just keep saying Buffalo every time. Okay.

Or anywhere in the lake effect. No, I'll be banned from doing it. Yeah. Hey, you made me get out of my comfort zone. Next time we're making her do it. Yeah, yeah. We're going to just do a whole challenge about northwest Arkansas so Henry can get a point. All right.

Well, thank you so much for listening to this episode of the Bigger Pockets podcast. We'll see you in a couple of days. And if you like this episode, please make sure to share this with someone who you think would like it as well. Or leave us a review on either Apple, Spotify, or YouTube. See you in a few days. Thank you all for listening to the Bigger Pockets Real Estate Podcast. Make sure you get all our new episodes by subscribing on YouTube, Apple, Spotify, or any other podcast platform. Our new episodes come out Monday, Wednesday, and Friday.

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