BiggerPockets Real Estate Podcast

Are $100K Rental Properties Ever Worth It?

51 snips
Jan 28, 2026
They debate whether sub-$100K rental homes can ever be good investments and when cheap equals trouble. They weigh price versus condition and stress proper underwriting for big repairs. Strategies for scaling with multiunits and using larger down payments or shorter loans get airtime. There is a fiery rant about hard money lenders and a discussion on the ethics and impact of flipping homes.
Ask episode
AI Snips
Chapters
Transcript
Episode notes
ADVICE

Underwrite Big Repairs Before Buying

  • Run the numbers to see if a sub-$100K purchase plus repairs meets your return goals.
  • Underwrite for big-ticket future expenses before buying.
ANECDOTE

Foundation Problems Sank A Cheap Buy

  • Henry owned a sub-$100K home with a troubled foundation that he stabilized but still sold.
  • The property remained hard to rent because tenants felt uneasy despite fixes.
ADVICE

Buy For Value, Not Sticker Price

  • Buy based on what the asset will be after rehab (ARV), not the sticker price.
  • If the rehab makes it rent for much more or resell higher, the cheap purchase can be smart.
Get the Snipd Podcast app to discover more snips from this episode
Get the app