🎙️ Welcome back to America’s #1 Daily Real Estate Podcast
with Tim and Julie Harris — top international Real Estate Success Coaches and eXp Realty Sponsors. 🚀
If you’re serious about success, it’s time to align with leaders who’ve helped agents just like you scale faster, attract more clients, and build lasting wealth.
Ready to choose your broker or upgrade your brokerage experience?
👉 Join today at https://WhyLibertas.com/Harris
or text Tim now at 512-758-0206.
Your future in real estate starts here.
***************
💥 Crush 2026 Before It Crushes You
Want more listings in 2026? Start here.
Tim & Julie Harris reveal how top producers are staying ahead with smart lead generation, magnetic branding, and simple systems that keep pipelines full.
✅ Perfect for real estate agents ready to level up in 2026.
👉 Claim your spot now: https://HarrisMastermind.com
***************
Why This Matters Now
Yes, the market has shifted — but smart investors see that as a green light, not a red one. Rising inventory, longer days on market, and increasingly motivated sellers are creating the best investment conditions we’ve seen in years. Agents who understand how to evaluate, negotiate, and operate rentals will look back at 2025 as the year everything changed.
Last week, we covered the Warren Buffett and Charlie Munger investment strategies and how they apply to your real estate practice. Today we’re diving into rentals — and in upcoming episodes, we’ll cover EXP Revenue Share and other advanced income streams. Consider this a taste of what we coach our Elite Clients to do every day.
This is your practical, no-fluff roadmap for confidently buying income-producing rental properties this year.
✨ HUGE Announcement! ✨
Everything from today’s show (yes, the notes too!) is waiting inside our Daily Newsletter.
You’ll get lead gen strategies, real estate scripts & success plans — FREE.
👉 Grab it now: https://harrisrealestatedaily.com/
✅ 8 Steps to Buying a Rental Property in 2025
1️⃣ Define Your Strategy 🧭
Start with clarity. What exactly are you trying to achieve? Be specific and deliberate. Your strategy may focus on:
-
Cash flow for income
-
Appreciation for long-term wealth
-
Tax advantages
-
Flipping
-
VRBO/short-term rentals
-
A property for your college student to live in (a favorite of many Elite clients)
Decide whether you’ll self-manage or hire it out. Determine if you want single-family homes (our recommendation), duplexes, or small multis — and why. Get focused before you go shopping, or the market will eat up your time and your money.
2️⃣ Launch Your Guaranteed Home Sale Program 💼
If you want more seller leads and better deals, this is one of the most powerful strategies available:
-
Advertise that you’ll buy their home in 90 days if it doesn’t sell
-
You’ll pay 95% of list price
-
They must qualify — you choose who qualifies (for example, sellers who are buying up into one of your own listings)
This attracts motivated sellers and gives you rental opportunities before they hit the MLS. Most of our coaching clients use some version of this strategy because it works.
3️⃣ Pick the Right Market 📍
Not every market is investor-friendly. Make decisions based on data, not emotion:
-
Job and population growth
-
Low vacancy rates
-
Landlord-friendly laws
-
Appreciation potential (not flat or declining)
💡 Don’t limit yourself to your backyard.
Your ideal rental may be in a different town or even a different state.
Work with local agents who understand investment numbers — and network with fellow Harris Coaching clients for off-market opportunities.
Ready to become an EXPIRED Listing Agent? As promised, here is the discount link for the EXPIRED LISTING LEADS: REDX
4️⃣ Stick to Specific Filters 🎯
This eliminates shiny-object syndrome and keeps you disciplined.
Your filters should include:
-
Price range
-
Geographic area
-
Property type
-
Age and condition
-
Target Cash-on-Cash Return (CoCR)
💡 CoCR Formula (Simple & Important!)
CoCR = (Annual Cash Flow ÷ Total Cash Invested) × 100
Example:
Invest $40,000 → Net $4,000 per year
$4,000 ÷ $40,000 = 10% CoCR
🎯 Target at least 8%
5️⃣ Create Consistent Deal Flow 🔁
Great deals don’t chase you — you chase them.
Build your pipeline by:
-
Working with investor-savvy agents
-
Attending local real estate meetups
-
Joining investor groups on WhatsApp and Facebook
-
Connecting with wholesalers and flippers
-
Leveraging your Harris Coaching network
-
Considering new construction opportunities
The more deals you evaluate, the stronger your instincts and confidence become.
6️⃣ Analyze and Negotiate Like a Pro 🧮
Stop hoping — start calculating.
Include everything in your analysis:
-
Property taxes
-
Insurance
-
Maintenance
-
Vacancy
-
Capital expenditures (cap-ex)
-
Management (even if you’ll self-manage)
For VRBOs, demand performance history and compare it to similar homes.
Be conservative. If the deal only works after a refinance, it doesn’t work.
Negotiate hard: price, credits, seller-paid rate buydowns.
Your job is to create your margin of safety before you buy.
7️⃣ Do Real Due Diligence 🔍
Slow down — this is where mistakes get prevented.
-
Full inspection
-
Review utility bills and maintenance history
-
Verify rent rolls and tenant history
-
Double-check zoning, title, and insurance
-
Know local landlord laws
-
Evaluate short-term rental rules if applicable
If anything feels off, trust your instinct and walk.
8️⃣ Close It and Run It Like a Business 🏁
Once it passes your inspection:
-
Coordinate lender, title, insurance, and management
-
Track income and expenses from Day 1
-
Plan for turnover
-
Use AHS warranties
-
Maintain it proactively
Treat it like a business, and it will pay you like a business.
📘 Bonus: Know Your Numbers Like a Pro
💵 1. ROI (Return on Investment)
Measures total profit — cash flow + equity + appreciation.
ROI = (Total Profit ÷ Total Investment) × 100
Example:
Invest $50,000 → Earn $7,500 profit
7,500 ÷ 50,000 = 15% ROI
💰 2. CoCR (Cash-on-Cash Return)
Measures cash flow only — not appreciation.
🧠 3. Cap Rate
Compares net income to price, regardless of financing.
Cap Rate = (NOI ÷ Property Price) × 100
Example:
$18,000 NOI ÷ $200,000 price = 9% Cap Rate
🎯 Good deals range 6%–10% depending on market and risk.
🏁 Final Thoughts from Tim & Julie
2025 is noisy — but opportunity hides behind the headlines.
Serious agents and investors are locking down great deals right now. They aren’t waiting for rates to drop. They aren’t waiting for the media to calm down. They’re taking strategic action with solid numbers and a proven system.
You don’t need to be wealthy to buy rentals.
You need a strategy, a coach, and a community.
👉 Join us at https://HarrisMastermind.com and plug into the training, scripts, and accountability that top-producing agents and investors use every day.
Let’s go build wealth — the smart way.
