112: Rookie Reply: Should You Invest in an Expensive Real Estate Market?

This week’s question comes from Scott (@hotdads1) through Tony’s direct messages on Instagram ! Scott is asking: How are expensive properties profitable? Is it a mindset shift to buy expensive properties, or should I look in cheaper areas? Should I purchase in a quickly appreciating market ? This is a very 2021-type question. We’ve seen numerous markets around the United States (and the world) see massive appreciation over the past year and a half. Now, real estate investors wonder if it’s even worth pursuing deals on the market . Although prices may be higher than they were before , you still have numerous options when trying to purchase a profitable rental property . Here are some suggestions: Price becomes irrelevant when looking at cash on cash return and true cash flow Look at creative financing solutions (like FHA loans) to close on a home with low money down Calculate your numbers for the long term to get rid of any short-term price dropping fears Stop looking at past prices and ask: “ Is it a good deal today? ” And more in the episode… If you want Ashley and Tony to answer a real estate question, you can post in the Real Estate Rookie Facebook Group ! Or, call us at the Rookie Request Line (1-888-5-ROOKIE). Links from the Show Real Estate Rookie Rookie Facebook Group Real Estate Rookie Youtube Channel Scot Morris's Instagram Rookie Podcast 109: From Sleeping in His Car to Multi-Unit Landlord & The “Nomad” Strategy Check the full show notes here: https://biggerpockets.com/rookie112 Learn more about your ad choices. Visit megaphone.fm/adchoices