Investor Buys 30 Units Amid High Rates

Investor Buys 30 Units Amid High Rates

Jesse Walters started his real estate journey in 2021 with one rental property. By 2025, he had grown his portfolio to around 30 rental units.

He achieved this growth even as interest rates climbed and the market faced uncertainty. Walters’ strategy focused on understanding local demand and building strong relationships.

Early Investments and Learning

Walters bought his first rental, a single-family home, in 2021 with a 20% down payment. Shortly after, he purchased a second single-family home that needed some work.

He invested about $15,000 in renovations for this property. It was rented out for $1,500 per month.

In 2023, Walters bought a fourplex in his hometown for $190,000. One unit was vacant, and he listed it for rent at $700 per month. The high number of responses showed him he had underestimated the market.

He realized there was a significant need for rentals in the area with limited supply. He adjusted rents upwards over time, and within 18 months, all four units were rented, generating about $3,000 per month.

Building Relationships for Deals

Finding deals often involves more than just searching online. Walters credits strong relationships with lenders and real estate agents for his success.

He works with an agent who brings him properties needing significant work, which other agents might avoid listing. Walters ensures these agents still get paid their commission, creating a mutually beneficial arrangement.

This approach helps him find off-market deals. Agents know they can bring him properties that might be a hassle to sell conventionally.

They also know he understands the required repairs and can close deals efficiently. This builds trust and encourages repeat business.

Strategic Property Acquisition

Walters buys properties using various methods, including direct mail campaigns and agent referrals. He makes many offers, expecting most to be rejected.

His success rate is about one offer accepted for every ten made. This volume is key to finding the right opportunities.

In 2025, he purchased a single-family home for $200,000. After $15,000 in cosmetic upgrades, it appraised for $287,000 and was rented for $2,300 per month.

He also acquired a duplex for $210,000, investing $30,000 in renovations. This property appraised for $330,000 and generated $2,800 per month in gross rents.

Analyzing Deals and Holding Strategy

Walters uses a simple formula to decide whether to hold or flip a property. He subtracts 30% of the gross rents to cover taxes, mortgage, and insurance.

If the remaining amount covers the debt service or is slightly above, he considers holding the property. This conservative approach helps ensure positive cash flow.

He generally prefers to flip single-family homes and hold multi-family properties. However, the decision depends on the numbers. The goal is to enter deals with built-in equity.

This provides an exit strategy if the initial plan doesn’t work out. Having multiple options is crucial, especially in changing market conditions.

Navigating Challenges: The Flip Gone Wrong

Not all deals work as planned. In 2025, Walters took on a flip project that became challenging. He bought a house for $265,000, budgeting $40,000 for renovations.

The market was shifting, and a similar house next door was not selling. He decided to invest more, spending $65,000 on renovations to make his property more appealing.

The house sat on the market for four months. The final sale price was $373,000, close to his initial target.

However, inspection issues, including a leaning deck and a needed roof replacement, added unexpected costs. These repairs, along with the increased renovation budget, reduced his profit significantly, leaving him with only about $600 in profit.

This deal taught him valuable lessons. He realized he underestimated renovation costs and didn’t adjust his strategy for the changing market.

It’s important to pay attention to market trends and invest in higher-end finishes when necessary for a higher-value property. Sometimes, spending more to fix issues is better than holding a property that loses money over time.

A New Venture: The Motel Conversion

Despite the flip setback, Walters continues to find opportunities. He is currently converting an old motel into a 10-unit apartment building, potentially adding an eleventh unit.

He bought the 6,000-square-foot property for $325,000. He estimates renovation costs at around $300,000.

He projects the converted building to generate over $9,000 per month in rent. The total investment is expected to be in the $600,000 to $700,000 range. He secured financing for this project with no money down by using a paid-off condo as collateral.

Walters’ journey shows that growth in real estate is possible even in challenging markets. By focusing on relationships, understanding local demand, and learning from mistakes, investors can scale their portfolios. The key is to adapt strategies and always focus on the numbers.

Source: I Bought 30 Rental Units in 5 Years, EVEN with High Interest Rates (YouTube)