The Differences Between Conventional Buying & Investing

Specialist · I give advice - [email protected] - I focus on states where investing is profitable, reasonably safe & secure · Member since 2026 · 81 posts · 17 votes

There is a difference between buying a single house to live in versus buying multiple houses as investments.

Here is a guide on the outcomes and you can see that over time, the investment process far outweighs the traditional buying the single house using a bank concept, where most of the money actually goes to the bank.

Suggestion: either be wise about how you buy properties or be the bank. :-)

The difference is giving the bank $90,000 to get a negative $33 a month cash fow or

use $35,000 to get a positive $600 cash flow. By the way, this still works in California, Texas and Arizona.

It can work in Indiana & Ohio but find properties near you that you enjoy.

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James JonesPro Member
Investor · Collierville, TN 38017 · Member since 2017 · 685 posts · 500 votes
2d
The math checks out, and I'll put my own numbers on it.
I buy single-family in Memphis under $100K all-in. ARV $180K-$265K. 3BR+ renting $1,395-$1,950 on Section 8. Each door targets $200+/month cash flow and the 1% rule. I refinance into DSCR loans at 70-80% LTV to pull my capital back out and do it again.
A conventional buyer puts 20% down on one house and waits 30 years. An investor buys the cash flow, recycles the capital, and repeats. Same house, completely different outcome — because the investor bought it as a business, not as a place to live.
The difference isn't the property. It's the process. Underwrite on conservative numbers, buy below market, force appreciation with the rehab, and never let a deal depend on hope.
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- John Leland
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  Specialist · I give advice - [email protected] - I focus on states where investing is profitable, reasonably safe & secure · Member since 2026 · 81 posts · 17 votes
  2d
  Quote from @James Jones:
  The math checks out, and I'll put my own numbers on it.
  I buy single-family in Memphis under $100K all-in. ARV $180K-$265K. 3BR+ renting $1,395-$1,950 on Section 8. Each door targets $200+/month cash flow and the 1% rule. I refinance into DSCR loans at 70-80% LTV to pull my capital back out and do it again.
  A conventional buyer puts 20% down on one house and waits 30 years. An investor buys the cash flow, recycles the capital, and repeats. Same house, completely different outcome — because the investor bought it as a business, not as a place to live.
  The difference isn't the property. It's the process. Underwrite on conservative numbers, buy below market, force appreciation with the rehab, and never let a deal depend on hope.
  
  That certainly works, congratulations. The difference in our approaches is you're benefiting from Section 8 where there is a serious need and I'm focusing on middle class America. It would be an interesting study to see the projected growth of each over time.
  
  But the more important aspect is people need to get started.
  
  100% increase in zero is still zero.
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