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Seeking seasoned investor advice

Jon DevPro Member
New to Real Estate · Connecticut · Member since 2025 · 4 posts · 2 votes

Hello All, Im new to this forum, as well as the RE investor game. Im extremely motivated to build my own business and develope financial freedom through real estate investments, however as of lately its seemed slightly less attainable. Recently listened to the BP podcast regarding a $12k/month cash flow story and it seems like the first purchase for many seasoned investors were at prices that were impossible to acquire today. Are the margins for success smaller in todays market? Does it require greater initial capital to get in this game? Or is there real opportunity for a person looking to build his legacy in this game. Thank you

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Melissa JusticeBusiness Member
Rental Property Investor · Phoenix, AZ · Member since 2024 · 519 posts · 1k+ votes
1y

@Jon Dev,

Welcome to the forumand more importantly, welcome to the journey. You’re asking the exact right questions, and a lot of new (and even experienced) investors feel the same way right now.

Let’s unpack your thoughts:
Are margins smaller today?
Yes and no.

Yes, in the sense that interest rates are higher, home prices have appreciated, and cash-on-cash returns are tighter in many traditional “turnkey” markets.

No, because investors are still making great deals today, but it often requires more creativity, patience, and strategy than it did 5–10 years ago when prices were lower and financing was cheap.

Does it require more capital today?
In many cases, yes, especially for traditional 20% down purchases. But investors are adapting by:
House hacking
Using seller financing or partnerships
Buying below market and rehabbing (BRRRR strategy)
Investing in lower-cost markets (Midwest, parts of the South)
Starting with smaller properties (e.g. under $150K)

You don’t need a ton of capital-you just need a solid plan and consistent action.

Is there still real opportunity?
Absolutely.

Every market cycle feels “too expensive” when you’re in it. But five years from now, someone will say, “I wish I started back in 2025 when rates were high and no one wanted to buy.”

Opportunity hasn’t disappeared; it’s just shifted.

In 2012, it was buying cheap foreclosures.
In 2020, it was locking in 3% interest rates.
In 2025, it might be creative financing, off-market deals, or building with small multifamily properties in secondary markets.

What You Can Do Now:
Educate Yourself Strategically – Focus not just on motivation, but on actual tactics: deal analysis, financing structures, cash flow projections, etc.

Pick a Strategy That Matches Your Strengths – House hack, BRRRR, turnkey, short-term rentals, etc.

Choose One Market to Learn Deeply – Know the rents, neighborhoods, job drivers, and team members (agents, PMs, lenders).

Start Making Offers or Analyzing Deals Regularly – Action kills doubt. Start with practice offers if you’re not ready to pull the trigger.

Yes, it’s harder than it was. But that’s what creates the barrier to entry. Most people won’t push through that discomfort. If you do? You're already ahead. Keep listening, learning, asking questions and most importantly, stay in the game. Legacy is built one deal at a time.

Always here to chat more! 

Best of luck,

Melissa



[email protected]313-221-8718
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  • Matthew Irish-JonesBusiness Member
    Real Estate Agent · Buffalo, NY · Member since 2017 · 2k+ posts · 2k+ votes
    1y

    Cash on cash returns for decent properties are 4-8%.  So the math is simple if you want $120,000 of passive income you need 1.5 million in readily available capital.

    Thats assuming you hit 8%, not 4% and don't have any dog investments.  Since you are just starting it's highly probably you will have a couple dogs along the way.

    Investing is a path to retire with more money than you would have if you didn't invest.

    I have never met someone who lived off off passive income and started by bootstrapping.

    Im sure they are out there, but its normally a life style choice that comes with living simply, not living it up on the beech while money flows in. 

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  • Melissa JusticeBusiness Member
    Rental Property Investor · Phoenix, AZ · Member since 2024 · 519 posts · 1k+ votes
    1y

    @Jon Dev,

    Welcome to the forumand more importantly, welcome to the journey. You’re asking the exact right questions, and a lot of new (and even experienced) investors feel the same way right now.

    Let’s unpack your thoughts:
    Are margins smaller today?
    Yes and no.

    Yes, in the sense that interest rates are higher, home prices have appreciated, and cash-on-cash returns are tighter in many traditional “turnkey” markets.

    No, because investors are still making great deals today, but it often requires more creativity, patience, and strategy than it did 5–10 years ago when prices were lower and financing was cheap.

    Does it require more capital today?
    In many cases, yes, especially for traditional 20% down purchases. But investors are adapting by:
    House hacking
    Using seller financing or partnerships
    Buying below market and rehabbing (BRRRR strategy)
    Investing in lower-cost markets (Midwest, parts of the South)
    Starting with smaller properties (e.g. under $150K)

    You don’t need a ton of capital-you just need a solid plan and consistent action.

    Is there still real opportunity?
    Absolutely.

    Every market cycle feels “too expensive” when you’re in it. But five years from now, someone will say, “I wish I started back in 2025 when rates were high and no one wanted to buy.”

    Opportunity hasn’t disappeared; it’s just shifted.

    In 2012, it was buying cheap foreclosures.
    In 2020, it was locking in 3% interest rates.
    In 2025, it might be creative financing, off-market deals, or building with small multifamily properties in secondary markets.

    What You Can Do Now:
    Educate Yourself Strategically – Focus not just on motivation, but on actual tactics: deal analysis, financing structures, cash flow projections, etc.

    Pick a Strategy That Matches Your Strengths – House hack, BRRRR, turnkey, short-term rentals, etc.

    Choose One Market to Learn Deeply – Know the rents, neighborhoods, job drivers, and team members (agents, PMs, lenders).

    Start Making Offers or Analyzing Deals Regularly – Action kills doubt. Start with practice offers if you’re not ready to pull the trigger.

    Yes, it’s harder than it was. But that’s what creates the barrier to entry. Most people won’t push through that discomfort. If you do? You're already ahead. Keep listening, learning, asking questions and most importantly, stay in the game. Legacy is built one deal at a time.

    Always here to chat more! 

    Best of luck,

    Melissa



    [email protected]313-221-8718
    8Reply
  • Jeff Roth
    Real Estate Consultant · Ann Arbor, MI · Member since 2022 · 471 posts · 260 votes
    1y

    Hi Jon-

    You are a new real estate investor and concerned that finding opportunities is harder with prices and interest rates what they are currently.

    Great question! You are not the only one concerned about this.

    There are still markets that offer strong cashflow in landlord friendly communities.

    As an out-of-state investor, you want to make sure you have a strong team in place that acts as your fiduciary and makes sure you buy well and the property is managed to increase value and reduce tenant turnover.

    There are many markets in Michigan that cashflow with high renter demand.

    We have helped and continue to help many out-of-state investors build portfolios of cash flowing properties.

    To Your Success!

    0Reply
  • Preston DeanBusiness Member
    Realtor · Fort Worth, TX · Member since 2021 · 779 posts · 368 votes
    1y

    Hi @Jon Dev
    Generally, yes — on the surface. Prices are higher, interest rates have gone up, and rents haven’t always kept pace in every area. That can compress cash flow margins, making the “easy wins” of past markets harder to replicate. But value-add opportunities, creative financing, and off-market deals can still offer healthy margins — they just require more skill, hustle, and sometimes patience.


    In many places, yes. Higher down payments, tougher lending standards, and increased rehab costs all mean you often need more cash to close a deal than investors did 5–10 years ago. That said, partnerships, private lenders, and seller financing can still reduce your out-of-pocket costs if you build strong relationships.


    There is absolutely still opportunity. The market is different, but the fundamentals — buying value, solving problems, building systems — haven't changed. It's just more competitive and requires sharper skills. Investors today succeed through creativity (think subject-to, seller finance, JV deals) and being willing to hunt for less obvious opportunities.

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  • Kerlous TadresBusiness Member
    Realtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votes
    1y

    Welcome Jon! Yes, margins are tighter today, but there are still opportunities. I’d recommend focusing on off-market or distressed properties for better deals. It might take more capital upfront, but creative financing like private money or seller financing can help. In my opinion, with the right strategy and patience, you can definitely build your legacy in real estate.

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  • Seth McGatheyBusiness Member
    Real Estate Agent · Milwaukee WI · Member since 2024 · 321 posts · 255 votes
    1y

    Hey Jon, I agree it is harder than it has been. But it is not impossible or even improbable if you know what you are doing. First off, getting in the game is easy if you are willing to house hack. This is by far the easiest way to get into real estate and set yourself up for a investing. I did this, many people have done this. Generally you can buy a property you could normally afford and then have renters pay all or most of your expenses. Meaning you are essentially living for free. 

    After that you can start using those savings and the appreciation you gain to make your next move. Often a BRRRR is a great next move or even a first move if you are confident enough. You can pair them to make your first move even better or use it in your subsequent moves to continue investing.

    But the big thing is keep looking for deals and you will find them. Just last year I got a $300,000 duplex in my local city of Milwaukee and am cash flowing $500 a month. It is still duoable. You just need to know where to find the deals.

    Good luck!  

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  • Marcus Auerbach
    Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
    1y

    Sorry, but it is next to impossible to generate $12,000 in cash flow in today's market, unless you have well over a million to invest and you know what you are doing.

    It has always taken 7-10 years to get out of a W2, but it was substantially easier 10 years ago than it is now. You can't house hack your way to 12k cash flow, even if you generate $500 per duplex - you'll need 24 of them, which will take you 24-30 years. And by the time you get there you'll be burning that cash flow on replacing roofs and kitchens.

    I still think that real estate is the best investment (if you have the skill and stomach for it). But you are investing for net worth and not for cash flow. Just like on the stock market most people are investing for portfolio value and not for dividends. Good luck building a 12k/mo dividend portfolio out of thin air.

    If you are looking for cash flow, then buy or build a business. The US tax codes heavily incentivices the combination of business + real estate investing.

    2Reply
  • Kate Sanchez
    Member since 2025 · 248 posts · 101 votes
    1y

    @Jon Dev  Totally get where you're coming from. Deals take more creativity now, but the opportunity's still there. Focus on value-adds, partnerships, and staying consistent.

    0Reply
  • Jon DevPro Member
    OP
    New to Real Estate · Connecticut · Member since 2025 · 4 posts · 2 votes
    1y

    Thank you for your time and input everyone. The feedback is invaluable  

    0Reply
  • Aaron ZimmermanBusiness Member
    Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
    1y

    In today's market, you need to work for cash flow and deals a little harder. It's absolutely true that it's harder to make deals pencil when interest rates are in the 6-7% range. You have to be more creative. The way to get better deals in todays market are by buying deeper and expanding opportunities for cash flow such as STR and MTR.

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  • Charles ClarkBusiness Member
    Real Estate Broker · Milwaukee, WI · Member since 2020 · 306 posts · 209 votes
    1y

    @Jon Dev

    Welcome aboard! 🔥 You're asking the right questions early, which is huge. Yes, today’s market is tougher—tighter margins, higher entry costs—but opportunity is absolutely still out there. It just requires more strategy, creativity, and patience. Focus on learning, networking, and taking that first smart step. Legacy building is still very possible. 💪

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