
BiggerPockets Real Estate Podcast These “Small” Rentals Boast BIG Cash Flow (Even at 7% Rates)
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Aug 11, 2025 Justin Albrecht, a real estate investor, built an impressive 11-unit rental portfolio starting in 2022, even while facing 7% interest rates. He shares how small multifamily properties became his wealth-building strategy, focusing on a simple and repeatable rental formula. With zero prior experience, Albrecht's journey from living with his mom to quitting his job highlights the importance of action in tough markets. He offers insights on unlocking monthly cash flow and the benefits of starting small in real estate.
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House Hack To Greatly Lower Living Costs
- Justin's tenant income cut his mortgage to just $400 per month.
- Dave Meyer notes lowering living costs sets you up to grow equity and reduce expenses.
Bought Duplex With Extra Lot For Safety
- Justin bought a duplex for $126,000 and put 25% down to finance it.
- The extra lot gave him a $15,000 safety valve to sell if needed.
High ROE From Value-Add Duplex
- After renovations Justin netted about $700 per month in cash flow on the duplex.
- That roughly translated to a 14% return on equity for his $60,000 invested.
