10/12/2026
Not every rental 🏠 should be bought for maximum cash flow. 🏦
This client had a different goal.
They were selling another rental through a 1031 exchange, which meant they had a relatively short window to identify a replacement property and get it under contract.
But we still didn’t want the deadline to dictate the investment.
Their plan called for a turnkey property with strong rent potential and a bigger appreciation/equity play over the next 8–10 years.
So instead of simply searching for the house with the highest monthly cash flow, we focused on where we believed future value could be created.
We found a home in a master-planned community that is still being built out.
Right now, resale homes in the community face significant competition from builders offering brand-new inventory. That creates downward pressure on resale pricing—and potentially an opportunity for a buyer willing to think several years ahead.
The thesis was pretty simple:
New construction should eventually wind down.
The surrounding area continues to attract investment from companies like Costco, H-E-B, Target and Home Depot.
And we were able to purchase the home significantly below where comparable homes had been selling.
The client put roughly 30% down, so no, this isn't a story about maximizing cash flow on day one.
We leased the property, it produces income, and now the client owns a relatively turnkey asset in an area they believe has meaningful upside over their investment horizon.
That's the part of rental investing I think gets overlooked.
The “best” rental isn't always the one with the most cash flow today.
The best rental is the one that fits the plan.
If your goal is $5,000 or $10,000 a month in future passive income, the first step shouldn't be scrolling listings.
It should be figuring out what you're trying to accomplish, how long you have to get there, and what type of properties will actually move you toward that goal.
Then you go shopping.
If you're trying to build a rental portfolio and want help figuring out what types of deals fit your plan, send me “PLAN.”