Unlock These 4 Hidden Real Estate Gems for Explosive Gains in 2025—Most Investors Are Missing Out!

Ever wondered if the secret to real estate riches in 2025 lies not in the obvious, but tucked away in overlooked corners? Well, buckle up, because there are dozens of ways to make money in real estate—some so under the radar, they’re quietly making smart investors a ton of cash this year. And guess what? Implementing these strategies might be far simpler than you think. In today’s episode of the Real Estate Rookie podcast, Ashley and Tony pull back the curtain on four niche real estate investments that are turning heads in a tough housing market. Whether you’re just sketching out your game plan or already juggling a few properties, these insider tactics—from stabilizing underperforming rentals with Section 8 housing to maximizing space through clever bedroom conversions—offer fresh, actionable angles to boost your cash flow and build wealth for less than the typical market price. Intrigued? You should be. Dive in and discover how you can sharpen your investing edge and maybe, just maybe, flip the script on what you thought was possible in real estate this year. LEARN MORE

There are dozens of ways to make money in real estate—including some tactics that are currently flying under the radar and quietly making smart investors a ton of money in 2025. The best part? Many of them are easier to implement than you probably think, and in this episode, we’ll show you exactly what’s working in today’s market!

Welcome back to the Real Estate Rookie podcast! Today, Ashley and Tony are breaking down four of the top “niche” real estate investments that are paying big in today’s tough housing market. Adopting one of these investing strategies could give you a serious edge, so whether you’re trying to pin down your strategy or already own a couple of properties, we’ve got something for you!

We’ll show you how to stabilize an underperforming property and create consistent monthly cash flow with Section 8 housing, as well as how to maximize your property’s rentable square footage (and appraised value) with bedroom and bathroom conversions. We’ll even show you how to buy a rental property for much less than the average home in your market!

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Listen to the Podcast Here

Read the Transcript Here

Ashley:
Everyone’s heard of rentals, house hacking and even fix and flips. But what if I told you there are four niche strategies outperforming in 2025 that most rookies don’t even know exist?

Tony:
And look, these aren’t just buzzwords. We’re talking about real deals where rookies can create values in ways the average investors simply overlooking. So if you are rookie and you want strategies that are working right now in 2025, not the same old stuff we talked about before, this episode is free.

Ashley:
This is the Real Estate Rookie Podcast. I’m Ashley Kehr.

Tony:
And I’m Tony j Robinson. And with that, let’s jump into our first niche strategy.

Ashley:
So this first one is a section eight overhang and this brings into accounts low income housing and specifically the low income housing tax credit. So a lot of people have heard of section eight, and if you haven’t, it is when a person qualifies for financial assistance to pay for their rent from an organization such as your local housing authority. So here in Buffalo it is Belmont Housing and a Section eight voucher is somebody applies and most often the rule is that their income has to be less than the medium income for that county. Things like that. There’s different rules. You can Google your local housing authority to see actually what the amount is that qualifies for somebody for low income. But usually your tenant will go ahead and do that themselves. You really don’t have to be involved until they want to move into your property.
And that’s where section eight will come in and do an inspection of your property and make sure it is rent ready and then you’ll actually sign a lease agreement with them to actually pay you part of their rent income. So it could be a portion of it and it’ll be different based on what the person can qualify for. And then your tenant pays the additional portion so you can do a lease agreement with your tenant. Some of the housing authorities do it different ways depending on what organization you go through to do this. But if you just search Section eight vouchers in Buffalo, New York or whatever your city is, you’ll be able to find the housing authority that actually handles them. And they usually have a landlord tab and will tell you everything you need to know about to becoming a landlord that accepts Section eight tenants.
And they even have their own listings there where you can list your property for rent. So all of the counselors there that help people get placements, they can look at your listing and maybe they’ll already have somebody that can, it’s waiting for an apartment to move into there. Okay, so that’s section eight one Pro of section eight is that people can consider it guaranteed income because it’s the government paying the income and not necessarily relying on the tenant if they lose their job or different things come up. So during COVID, people really liked section eight because you still got paid that portion of it. Another thing that I’ve seen from the section eight tenants I have is that they are more likely to pay also because if they stop paying, they lose that section eight voucher and now they get no funding at all. So those are some of the benefits.
I’ve actually never had a bad experience with Section eight resident, but there are people that have and people that stay away from it. But one advantage that isn’t often talked about is the low income housing tax credit. So this is actually where you can get the tax credit and you have to comply of course with rules and regulations and your property has to fit the bill, but this is an additional benefit that can put more money back into your pocket. And Tony and I recently did an episode on what we’re doing for tax planning and tax advantages and this is another way to save money from these tax advantages that are available out there for real estate investors. So Tony, when you had your properties in Louisiana, did you have any Section eight tenants?

Tony:
No, no Section eight experience on my side. That’s why this strategy I think is even more interesting to me because it’s all new and foreign. But I guess help me understand, so section eight is obviously subsidized rent, rent being subsidized by the government, but the low income housing tax credit, just walk me through how does that work? So basically if I’m a landlord and I buy a property that satisfies the conditions for this low income housing tax credit, am I getting some kind of tax benefit that offsets the income of that property? How does it actually work? The credit?

Ashley:
So when you would file your tax return, you would get the tax credit savings on your tax return, you would report your income and expenses for it. And I honestly dunno exactly how it’s calculated for the tax return when you’re reporting the rental income. But I do know there are some restrictions as to even how much you can charge and it has to be under that certain amount in order to fit the low income housing tax credit cap that they have. So some of the reasons I think this is actually worth looking into for rookie investors is because affordable housing and demand is actually exploding and with higher interest rates and rental rates increasing, it’s getting harder and harder for people to find affordable housing. And if we do start to shift into a recession, this actually can be a recession proof income for you because section eight will still pay most of the bill for these renters that you have in place.
Or if somebody’s living in a luxury unit and all of a sudden they’ve lost their job, affordable housing may be what they need. So one thing that I did want to share is how to actually find out if a property is actually eligible for this. And this is one of the nice things about this strategy is looking for properties is that you can most of the time find out if it qualifies before you even purchase the property. So hud, they actually maintain a property database. So this is the L-I-H-T-C database and this is where you can search by city, county or even zip code and it will tell you if the property is already part of the program. The next thing you could do is also contact your local state housing finance agency commonly referred to as HFA and you can tell them the property address and they will actually just tell you if it’s already approved.
And also when the compliance period ends, some of these tax credits, these programs, there’s also one for timber that I’ve learned about too. They have an end period where you can get these tax credits but they end after so many years. So you have to commit and this one is usually 15 years. You commit to being the low income housing 15 years. And then after that you can decide if you want to re-enroll or if you’d like to do something else with the property, which I think gives it flexibility that it’s not something you have to do forever with the property. You can also go ahead and get your property approved. If you already own a property too and you maybe already have a Section eight person in place there and you’re not enrolled into this program but you want your property approved, you can go ahead and actually go through the process to get it approved to get that tax credit to.

Tony:
So Ash, if I’m tracking correctly, really what we’re talking about here is just stacking two strategies together because not every section eight property also qualifies for this low income housing tax credit. And not every property that qualifies for low income housing tax credit is also being filled with Section eight tenants. But you’re saying if you combine both of those, you get the certainty of the section eight voucher and the government backing up their rent payment, but then you also get the tax benefit that comes along with this credit. So we’re really putting two strategies together focused on affordable housing.

Ashley:
And I think this is also another way to stabilize a property you already have. So if you already have a property, you could go ahead and do these two different things, these two different strategies and implement it into that property to be able to get these benefits and maybe make it a better performing property. So I actually went and looked up what Section eight actually pays in my area. And so I looked at one of the, it breaks it down very, very specific by zip code. And so I looked at one of the properties that I have and I’ll tell you the market rent first. So the market rent, and this is based off of my properties I have there and my friend manages two 40 unit apartment complexes there and I know some other units and what they’re going for or whatever. So the market rent for a two bedroom is around nine 50 for just middle of the road, no luxuries, nothing, just your regular standard apartment, nine 50 for a two bedroom for a section eight in that area, they would pay up to $1,300 for a two bedroom apartment.
So in some cases you may be able to raise your rent even if the market rent isn’t there, you still can list it for that with section eight and they will pay up to that amount as long as the tenant they have is qualified for their portion. We’ve had circumstances where section eight would pay it, but then the person was only approved for a thousand dollars that they would get and they couldn’t afford the extra 300 or whatever it would be. But yeah, so that’s just something to look into if you are not looking for a new property is just seeing what you can do to maximize your rent Now with a property you already have too.

Tony:
Alright, but what if you don’t want to deal with tenants like at all? That’s the beauty of land flipping. No late night maintenance calls, no lease agreements, just dirt that you can actually buy. So we’ll cover what this is right after. Quick word from today’s show sponsors. Alright, so we’re back and our next strategy is what we call mid-range land flipping. So we all know home flipping, you buy an undervalued home and disrepair, you fix it up and you sell it for more than what you bought it for. You get to keep the difference, but there’s also this concept of land flipping where you can pretty much do the same thing. But with land, what mid-range land flipping is, it’s I guess most land flippers focus on super cheap pieces of land, like 1000 to $5,000 or on huge development lots where there’s going to be a subdivision of a bunch of homes and that’s in the millions of dollars.
But there’s this mid-range land flip that’s, I dunno, call it like 50 to maybe $250,000. That’s turned into a bit of a sweet spot for folks who are looking to do this. And you can buy a parcel with kind of good underlying fundamentals and that’s is there access, can you actually get to the property, not landlocked, are utilities nearby? Zoning? Is placement good? If you need to put a well or septic or any of those things you hold it for, call it six months, maybe a year and a half and then you resell this after making some small improvements and you get to keep the difference. I’ve never personally land flipped. Have you ever flipped land ash?

Ashley:
No, I don’t think that I have. I mean I guess I would know if I did, but yeah, if I did it was accidentally with another property or something. But I do have 10 acres under contract that I did nothing with and I’m selling it for, let’s see, $5,000 more than I bought it for definitely not covering my holding cost, but I really like this strategy because in my market I am seeing every single week on Facebook and the local group says to looking for two acres to build a home, does anyone have anything available? And all across the US right now are builder incentives, like crazy incentives to purchase a house. But a lot of times builders already have their own lots that you can pick and choose from and most of the time they’re in developments, they’re in a cul-de-sac right next to each other. So for the people that don’t want to be right next to each other, you can go and buy 10 acres and parcel it off into five, two acre lots.
There’s lots of things you have to check on this as to make sure there’s enough frontage so that everybody can have a driveway to their house, make sure that the town will let you parcel it off, speak with the code enforcement there that it won’t be an issue to parcel. And then you could even go as far as putting utilities there or maybe there’s already utilities at the road where it’s not a big deal to actually bring them to the house. So if you’re getting pretty rural, you could put in a septic or a well have electric run under there, but that also can change how when someone’s building their house wherever you put the, well maybe that’s where they wanted the bedroom, it has a view of this tree or something like that and now they’re not going to buy it. So that’s just taking it an extra further step is having the actual infrastructure in.
But just this morning I drove by a property that I remembered being for Sally, I had to take my car to the dealership. So I took a different route on the way back from school and I remember this property being for sale and it was a single family ranch home and there was about, I don’t remember how much land, but a lot of land with it and the house was very dilapidated and just old and it was just like a crazy amount of money. I don’t know what it ended up selling for, but the person that bought it when I drove by, I saw that the single family home had been fixed up, but they also had subdivided the land on the other side of the street and they had driveways put in. Some of them already had contractor sign out front that people were coming in to do the foundation, put in the wells, things like that.
So they had actually gone and subdivided this land. What ended up with the single family house? I don’t know, maybe they moved into that or maybe they rented out, but selling the lots paid for the whole thing. So that’s what I like about the opportunity of land and this subdividing is like you can go ahead and buy it and then parcel it off and then maybe you keep a parcel for yourself to build, put a rental on, do whatever for the future for you to build a house or something like that. But I think that mid range is really key because you’re going to get the developers, the house builders that are going to buy up those bigger lots where they can put a whole paved road through, create the cul-de-sac and have 20 to 30 lots right on there. Then smaller lots you’re just, you can only fit one house and sell it to one person and not be able to subdivide there.

Tony:
And I think that’s why this one’s kind of like that sweet spot, right? Because you think about the cheap land, those homeowners are getting bombarded with people trying to solicit to buy their lots of land and the big parcels, that’s where all the big institutional builders are going, but it’s like that mid-range, maybe a little less crowded, you got less folks going after that. And then from an affordability perspective, I think you brought up a good point ash of if I want to build my own home sometimes, well first sometimes it’s cheaper to build right now it is to even buy a resale home in certain markets we know that that’s definitely a shift that’s happening. But what about the financing portion? I think all of us understand that’s gotten by a traditional single family home. We go to a bank, we get a loan 10, 20, 30% down. What’s this process like if someone wants to do this mid-range land flipping

Ashley:
And that is the difficult piece because it is harder to get a loan on raw land that doesn’t have a property on it. The first thing to do is check with the small local banks to look at getting a loan on the land through them. And some banks will do it if you put 30% down or a larger amount down the way that most people when they build house, their contractor or their builder, if they’re not buying a lot directly from their builder, some people will have their builder buy the lot and then wrap it into their home loan. So then they’re not even owning the lot yet the builder is building their house and when they close on their house, they’re buying it all in one from the builder. Okay, so you don’t have that luxury if you’re going to go and do land flipping on this property of doing that.
So talk to the small local banks, see if they would land it on, but still that’s a lot of cash to have upfront to put 30% down on one of those lots and you most likely have to have some credibility or some kind of experience that they’re just going to lend to you on this raw land that the best way is to get seller financing. Find somebody who will seller finance a property for you for a year or give yourself a cushion of how long you think you need to actually parcel it off and sell each of those lots. The next thing is partnerships. Bring somebody in that has the capital. You have the lot, you have the land, there’s not a lot of things that you need to do to get to this ready besides doing a survey to do the parcels and maybe putting in driveways to the lots and sometimes you don’t even need to go that far.
But yeah, you could bring a partner in and then I think the last thing that you could do is what that house I drove by today did. They bought the land with a single family home on it so they could have gotten financing on that property because there was the single family home. So now the difficult piece of that is though, once you purchase it, you can’t go and just sell and parcel off pieces of land because that land is part of the collateral of all the loan. So when I worked with this other investor, something he would do is go to the bank and ask the bank, can I parcel off this five acre lott? And the bank would basically evaluate what the value of the land was. Some may do an appraisal, some may just do book value, whatever, and they would say yes, that’s okay, there’s still enough collateral in this property, it will work.
So you can go to the bank and do that, especially if you are adding value and you’re rehabbing the property, then you’ll be able to show, I put this property, the house is worth a lot more, can I go ahead and section off this land? Or you could work it out that those five lots you’re selling is actually going to pay off the whole loan. You would just have to time it so that those lots are all pretty much at the same closing time to be able to pay off the loan that you have it. But also if you find buyers for each of those lots, I think that would be a pretty easy way to find a private money lender to pay off your bank financing and they hold the note for three months or whatever it takes to actually close, make some interest off of you or maybe get a cut of the deal during that time until you actually close on the other lots.

Tony:
I think one other concept too, ash, is that the cost of this land in a lot of cases might be what you already have saved up for your down payment of what you were thinking to buy as a down payment. So you might be able to just go out here and buy some of this land and cash and then either partner with someone to do the improvements or whatever the cost may be there. But I think because the price point is so much lower, maybe it does open you up just for using the cash you have sitting around to go out there and take these down. But I guess the last thing that comes to mind for me on this ash, is actually choosing the right markets to do this in because I think that maybe this works better in some markets than others, right? I’m in California, one of the most expensive places to buy land to buy dirt. What do you think are maybe some of the things folks should look for as they think about markets to identify?

Ashley:
Yeah, I think looking on the outskirts of the town, so looking where is their growth that’s coming out of the town? So I think of Denver for example, when you’re driving to the airport just, I mean I’ve probably started going to Denver four years ago, maybe five and just since then, how much is slowly coming out towards the airport to the new development? There is nothing there, nothing. And now there’s things popping up. So I think going and looking at different cities or towns where there’s a lot of growth and looking where are they expanding to where are the pockets where people who can’t get houses in that area, they’re moving out a little bit. So look in those areas. And then I think another thing is to look at where there’s rising building permits. So you can look online in most cities, how many building permits were filed, what they were filed for, and the more building permits means there’s more demand for land already there.
And you can look, are these for residential homes? Do a lot of people want to build residential homes in this market? Then that’s probably a good area for you to look for land for. And some really good tools you can use is just like the county GIS mapping system. My dad actually showed this to me. He would use it when he would go hunting to look up who owned land if the deer he was tracking went on someone else’s land or whatever. But this was like, I used this religiously for years and it’s free to, there’s more advanced options that you can pay for like stream things like that recently. But the county GIS mapping is free and it will show you who owns a parcel, the mailing address sometimes what the taxes are. But it will also tell you is it what it’s zoned as. It will also tell you is there frontage? So is there road access, is it vacant, is there any property on it? So that’s a really useful tool. Then there’s also just looking for properties. You can go to LandWatch land.com, Zillow has a lots in land filter. And then also just even on BiggerPockets, they have the market finder to help you analyze a market too.

Tony:
So obviously the mid range land flipping I think is a concept that more folks should be exploring, especially if it’s something that makes sense in your market. But the third strategy that we want to talk about is bedroom count conversions. So exactly what this sounds like. The idea is taking a property and simply adding more bedrooms to it. It could be taking a two bedroom home and converting it into a three bedroom, or we’re taking a three bedroom and converting it to a five bedroom. And we’ve actually had several investors on the podcast who have done this in various strategies. We had the nasims who were leveraging the rent by the room strategy and they would buy a three bedroom house and convert it into an eight bedroom property. So we’re talking a massive conversion. Then we also had Ariel Herrera who a big part of her strategy was looking for properties that had oversized square footage for the bedroom count so she could go back and add bedrooms.
So I think the idea of finding a property that has the footprint, the existing footprint, and this is obviously you could do this by doing an addition, but I think we’re more so focused on here is within the current footprint, can you add additional bedrooms? And the reason why this is so valuable is because when you think about both appraised value and rental income, both of those things increase somewhat substantially when you add additional bedrooms. So the income from a three bed is substantially higher than the income from a two bedroom. Most situations, the appraised value on a three bed is significantly higher than the appraised value on a two bed again in most situations. So finding these properties that give you that opportunity, I think the strategy outperforms because it’s a relatively small change, reconfiguring some walls, adding some closets, and closing maybe a space that’s already open to get a pretty fast and high ROI as opposed to doing a full gut renovation on something else.

Ashley:
So one of the things that I really like about this strategy is that I’ve love hidden MLS deals. Things that you go to a showing and look at a property and you get excited that you found something that not everyone would see you when they’re on the MLS and Tony’s talking about using data screen, looking at all these things to figure out if there is that key point there. But also just visiting the property and seeing it. And yes, you don’t want to waste a lot of time going to showings, different things like that, but when you find an opportunity, and we’re specifically talking about bedroom conversions, but maybe there’s something else in your market that will really add value to a property that maybe somebody could leave out of a listing, and I can’t think of a single example off the top of my head, but maybe there’s a pond on the property or something like that in my area, people love to have a pond on their property.
So different things like that. And with the bedroom conversion, one thing I will say because I have made this mistake before is if you are on a septic is make sure that your septic is approved for how many bedrooms you want to have in the property or even if you are adding another bathroom to add value that it is approved for that number. So I purchased a property that was a three bedroom, I put in a four fourth bedroom. The septic that is in and past inspection is only for a three bedroom and not approved for up to four bedrooms. So when I go to resell that property, at some point I will not be able to market it as a four bedroom because when they get the septic tested, they’re going to fill out that sheet and say we’re buying a four bedroom house, that septic is going to fail inspection because it’s only meant for three bedrooms.
And then I will have to pay out of escrow for a new septic to be put in at that property, which I do not want to happen. So at the time of selling that property, it will be listed as a three bedroom with an office, with a playroom, with a bonus room, whatever we have to say to not make it a bedroom, which really, really stinks because that would make it an extra bedroom. But also as a buyer, here’s exactly what we’re talking about. Here’s an opportunity where there’s actually more value in the property. So maybe somebody’s going to come and look at this to rent this property out and they’re going to say, oh, I could actually use that other one as a bedroom and I can get a lot of money for a four bedroom property and not even care about the septic.
So I think there’s different looking at the code and area, what actually means turning something into a bedroom, what that actually is around here, almost every house has a basement. So if you’re putting a bedroom in a basement, you have to make sure there’s some kind of access outside. So on this property I was talking about, it had a walkout basement. So the bedroom we put was in the basement, but there was actually a window, but where the window was placed, this bedroom had to be a massive bedroom because there was no other way to configure it because we had to have that window. And when we had code enforcement come to the property just to check everything, things like that, he had said this window is literally the bare minimum of what code is for somebody to be able to escape out of if there was a fire. So window size, making sure that you have the correct window size to make it count as a bedroom. So there’s a lot of little details like that you don’t want to miss out on.

Tony:
I know it can sound like Ash is talking about a lot, but honestly I think this strategy in my mind is actually simpler than doing a full house flip because if the property is in good condition and we’re literally just moving a couple of walls, I think that’s easier than having to do a full gut rehab where you’re tearing down all of the walls and you’re redoing plumbing and electrical and all these other things come along with a full rehab. So in a lot of ways it actually I think might be a lower risk way for a rookie to get into the game while still doing almost a burr type deal, but with way less work and way less overhead.

Ashley:
When I was in college, the guy that I dated, he was in a frat and all the fraternity guys and sororities, they lived off campus in these houses. And I remember him and his friends were getting a house and we went house hunting and I could not believe what was considered bedrooms for these college kids. So you’re in college towns, you probably have way more flex as to what can be considered a bedroom. Every single dining room was turned into a bedroom. The house they ended up settling on the dining room was the biggest bedroom. And then behind it was two more bedrooms. Then off of the kitchen was a pantry and the pantry had a window and the pantry was considered the fourth bedroom. And so they rented this house and it was like someone is actually going to stay in there. And it was a gross, disgusting room and it was like, I mean obviously it was a big pantry, but it was still the smallest room and just the creepiest room.
And what they did to decide as to who would get what room is they each picked one competition. So one picked basketball, one picked a video game, one picked, I don’t know, whatever. And so they had this whole tournament and every place that you got in each of the competitions, you got points and based on your points, you got pick of your room or whatever. So you got to pick, which I actually thought that was pretty creative, but it was just so shocking as to like, wow, college students don’t care. You can live Even the house was disgusting, disgusting. Me and him ended up living in there over the summer to do a summer program or whatever before anybody else even moved in. And so we did the initial walkthrough with the landlords, people that worked for them. I don’t even know, literally the bottom of my shoes were disgusting. And I was like, I don’t think I could live here. I don’t think we had to go to the store and buy all these cleaning supplies and I to scrub it, but it still was just like, it’s just dirt and grime that never ever comes up.

Tony:
But you guys still moved in? Yeah. Oh yeah, there you go.

Ashley:
Yeah. So I had to live there for six weeks out of the summer, and then I was back to my very nice luxury on campus apartment with four of my friends and we had our nice kitchen, everything. We had two bathrooms in our thing.

Tony:
So the moral of the story is go graft after attendance with low expectations like a bunch of boys in college.

Ashley:
So we’re going to take our last ad break. So what if instead of moving walls, you place an entire home on a piece of land? Prefabs are giving investors a way to create affordable housing at half the local median price and they’re selling fast. It’s like flipping, but you’re starting with dirt and ending up with a brand new house. Let’s break down how that works for rookies after a quick word from our sponsors. Okay, so welcome back. We’re going to be talking about prefab homes. So this is prefabricated homes where the home is a modular home or even a manufactured home. But I specifically like modular homes better than manufactured homes because they first of all look and feel more like a stick built home, I guess. So these prefabricated homes are built most of the times in pieces and then trucked to your land and put together in pieces. So I’ve actually never done this, Tony, any of your Airbnbs or any tiny homes or anything set up as prefab homes?

Tony:
No, but a friend of ours, Brody Faucet, I know he’s working on a development, it might be close to Dun now actually. And it was a short-term rental development and he got his homes from zip kit I think it was, but they offer modular homes as well. And he’s building out a little tiny home community built of nothing but these modular homes.

Ashley:
Yeah, so one of the benefits of this is you have it built a lot faster than if you were starting from the ground up because you could ideally order one of these before you even close on your land where if you haven’t closed on your lot, you can’t start building from the ground up yet until you’ve actually closed on the property. And plus, since a lot of these are, they’re kind of the same built out, like you’re probably picking a floor plan and picking a property. Some of the lead time is even less because they’re already just manufacturing making these. I did know a guy once who was building one on some land and he talked about the finishes you can pick out, his wife was deciding on what light fixtures and things like that, but was they would bring the thing and the pieces and put it together and then there was a period of time where it had to sit before they could actually move into the property too and do a bunch of the little finishes and things like that to actually make it to move in ready. But the thing I like about this is because usually it is cheaper than building a stick home from the ground up.
And I say stick home because that’s pretty much what’s built around here is your framing out a property in wood and then building out from there. It’s not concrete homes or anything like that, but that this is more affordable. This actually might be a great option for a rental. I don’t know the pros and cons of it. I think it would be really interesting to look at the lifespan of a modular home. How is the quality of the build compared to actually building one from the ground up? My guess would be it’s not as good, but that’s only just because nobody I know does it. And if it was better quality, why wouldn’t you do it? I guess

Tony:
I think the other piece too for me is just the appraisal of those homes as well. Typically, if you go traditional sick built versus a manufactured home, the manufactured home just simply won’t appraise for as much as a comparable stick-built home. And I wonder if the modular homes maybe have more upside when it comes to their long-term value. Because if someone wants to buy not just for cashflow today, but for long-term wealth, are they potentially setting themselves up for less wealth building because they went with the modular homes? I don’t know. But some of these modular homes that I’ve seen, you could look at them and not even almost know that they weren’t stick-built. So hope is that as this technology gets better, that maybe it is an option for more folks to get in quicker, more affordably than going the traditional sick bill route.

Ashley:
I guess a couple of the other advantages to this is also the speed to market that you’re going to be able to get a property up faster than anyone else to be able to sell it. There is a little recession resistance, so the demand for starter homes rarely disappears. And that’s what I’m seeing in my market is the houses that are still flying off the MLS are this perfect starter homes for people. And then I guess the last thing would potentially be the equity upside. You are essentially creating a house out of just land by placing a prefab onto it. You are multiplying basically the value of your investment by adding value to that land. So instead of doing a burr or rehabbing a property, you are adding value by putting a property on that land. So I think some of the things to look at as far as finding the right market are where our high housing costs, where is it really expensive to actually build or to buy a property and you can put in these cheaper prefabs and be more affordable to hopefully attract more buyers to your property.
Look for counties with flexible zoning and also builder friendly areas too. Well, those are our four niche strategies that we wanted to touch on today. If there are other strategies that you think are really the go-to strategies for 2025, if you’re listening to this on YouTube, please put them into the comments. We’d love to do another episode like this and share with you guys strategies, tips, tricks and advice that we have as investors and what we’ve been able to research and find out for you guys. I’m Ashley, he’s Tony. Thank you guys so much for joining us and we’ll see you on the next episode of Real Estate Ricky.

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In This Episode We Cover:

  • Four “niche” real estate investments that can make you more money in 2025
  • How to create consistent monthly cash flow using the Section 8 “overhang” strategy
  • The key to buying (or building) cash-flowing rentals for less than the average home
  • How to buy land, improve it, and flip it for a massive profit (step by step)
  • Creative ways to stabilize your underperforming rental properties
  • And So Much More!

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