🏡 8 Simple Steps to Build Wealth Through Rentals How to Invest (Without Guessing or Gambling)

Good evening, agents! 🌓 Building wealth doesn’t have to be risky, complicated, or reserved for the ultra-rich. In today’s edition, we’re breaking down 8 simple, proven steps to help you start (or scale) your rental property journey—with confidence, clarity, and zero guesswork.

Whether you're buying your first investment or fine-tuning your existing portfolio, this guide will help you make smarter moves, avoid costly mistakes, and create predictable, long-term income through real estate.

Let’s turn rentals into real results—step by step. 🏡🎯

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Why Now?

Yes, the market has changed—but smart investors see that as a green light, not a red one. Rising inventory, longer days on market, and motivated sellers are creating real opportunities for agents who know how to analyze and act. Whether you’re just starting or scaling your portfolio, now is your time to get more serious about rentals and what they can do for you and your family.

Last week, we discussed investment strategies that Warren Buffet and Charlie Munger recommended, and how we recommend you utilize those strategies.

Today we're talking about rentals, and in future podcasts, we'll discuss EXP Revenue Share.  We're giving you a little taste of what we do with our ELITE Coaching Clients.  

This is your practical, no-fluff roadmap to confidently buying income-producing rental properties this year:

✅ 8 Steps to Buying a Rental Property in 2025

1️⃣ Define Your Strategy 🧭

Start with clarity. What are you trying to achieve? Be specific.

• Cash flow for income?

• Appreciation for long-term growth?

• Tax benefits or wealth-building?

• Flipping?

• VRBO?

• A rental for your college kid to live in that will appreciate in the meantime? (A strategy of many of our Elite clients)

Will you self-manage or hire it out? Do you want single-family homes, duplexes, or small multis? Why? (We recommend single family).

Get focused before you go shopping, or the market will eat up your time and money.

2️⃣ Launch Your Guaranteed Home Sale Program 💼

Want more seller leads and great deals? Implement this powerful strategy:

• Advertise that you’ll buy their home in 90 days if it doesn’t sell

• Offer 95% of list price 

• They must qualify—you decide who (e.g., they’re buying up into one of your listings)

This generates a steady stream of motivated sellers and potential rental properties before they hit the MLS.  We teach the specifics in our coaching programs. Most of our clients are utilizing some form of this strategy!

3️⃣ Pick the Right Market 📍

Not every market is investor-friendly. Yours may or may not, so open your mind and think analytically to make a business decision.

• Job and population growth

• Low vacancy rates

• Landlord-friendly laws 

• Appreciation, not flat or depreciating

✅ Don’t limit yourself to your backyard.
Your Wish List Property may be in another town—or another state. Work with local agents who understand investing.

🤝 Even better: Network with fellow Harris Coaching clients to uncover off-market opportunities in their markets—and share yours, too.

4️⃣ Stick to Specific Filters 🎯

Avoid shiny-object syndrome. Lock in your Wish List Property filters:

• Price range

• Geographic area

• Property type (single-family, duplex, etc.)

• Age and condition

• Desired Cash-on-Cash Return (CoCR)

💡 How to figure out CoCR:
Tells you how hard your invested cash is working.

Cash-on-Cash Return = (Annual Cash Flow ÷ Total Cash Invested) × 100

Example:
You invest $40,000. The property nets $4,000/year.
→ $4,000 ÷ $40,000 = 0.10 → That’s 10% CoCR
🎯 Target: 8% or higher

5️⃣ Create Consistent Deal Flow 🔁

Great deals don’t find you—you find them.

• Work with investor-savvy agents

• Attend local meetups and real estate groups

• Network through investor groups in What's App and Faceboook

• Build relationships with wholesalers and flippers

• Tap into your Harris Coaching network

• Consider New Construction opportunities

In a buyer’s market, the more deals you review, the more confidence you gain. Preview the opportunities and run the numbers, even if you're not ready to buy yet.

6️⃣ Analyze and Negotiate Like a Pro 🧮

Stop guessing—start calculating.

Run real numbers, not hopeful ones:

• Include taxes, insurance, maintenance, vacancy, cap-ex, and management

• If it's a VRBO, get the history and compare it to others in the area.

• Assume it will be vacant at least one month per year.

• Be conservative. If it only works with a refi later—it doesn’t work.

• Negotiate hard on price, credits, and seller-paid rate buydowns

Your job is to create your margin of safety before you buy.

7️⃣ Do Real Due Diligence 🔍

Now it’s time to slow down and check everything:

• Get a full home inspection

• Review utility bills and maintenance records

• Verify rent rolls, lease terms, tenant history

• Double-check zoning, title, insurance, and local landlord laws

🔑 If the deal smells funny, it probably is. Be ready to walk away.

8️⃣ Close It and Run It Like a Business 🏁

Once it passes inspection, get it closed fast.

• Coordinate lender, title, insurance, and property manager

• Track income, expenses, and repairs from Day 1

• Plan for turnover and long-term maintenance

• Use AHS Warranties on all!

🎯 Treat it like a business, not a side hustle—and it will pay you like one.

Bonus: Know Your Numbers Like a Pro

Want to know if a rental is worth it? Here are 3 must-know investor terms—with kid-simple formulas:

💵 1. ROI = Return on Investment

Measures total profit from everything (cash flow, equity, appreciation):

ROI = (Total Profit ÷ Total Investment) × 100

Example:
You invested $50,000. You earn $7,500 total in profit.
→ $7,500 ÷ $50,000 = 15% ROI

💰 2. CoCR = Cash-on-Cash Return

We covered this above—just remember: it measures cash flow only.

🧠 3. Cap Rate = Capitalization Rate

Compares net income vs. price, regardless of how it’s financed.

Cap Rate = (Net Operating Income ÷ Property Price) × 100

Example:
Property price: $200,000
Net income (before mortgage): $18,000
→ $18,000 ÷ $200,000 = 9% Cap Rate
🎯 Good deals = 6%–10%, depending on market and risk

FINAL TAKEAWAY

2025 is full of noise—but opportunity hides behind every headline. Serious agents and investors are getting deals right now. They’re not waiting for rates to drop or the media to calm down. They’re building wealth with smart strategy, solid numbers, and disciplined action.

You don’t need to be rich to buy rentals. You need a system, a coach, and a community.

👉 Join us at HarrisMastermind.com to plug into the training, scripts, and accountability that top-producing agents and investors use every day.

Let’s go build some wealth—the smart way.

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AND THAT'S A WRAP!

Your trusted mentors in real estate and community leadership,

—Tim & Julie Harris
Harris Real Estate Daily

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