Book Review: The Book on Rental Property Investing by Brandon Turner (2015)
1. Book Details
• Title: The Book on Rental Property Investing: How to Create Wealth and Passive Income Through Smart Buy & Hold Real Estate
• Author: Brandon Turner
• Publication Year: 2015
• Genre: Business, Real Estate, Investing, Personal Finance
• Pages: 341
• Target Audience: Aspiring and experienced real estate investors looking to build wealth through rental properties.
2. Overview
Brandon Turner, a well-known real estate investor and co-host of the BiggerPockets Podcast, provides a comprehensive guide to rental property investing. He demystifies the process, from acquiring properties to managing them effectively, while emphasizing wealth-building strategies through smart investing.
The book is divided into four main sections, covering:
1. The Basics of Rental Property Investing
2. Finding Rental Properties
3. Financing Rental Properties
4. Managing and Scaling a Rental Property Business
Turner shares actionable advice, case studies, and practical steps for investors at different experience levels.
⸻
3. Key Concepts & Detailed Explanations
1. Understanding Rental Property Investing
Turner starts by breaking down the fundamentals of rental property investing. He stresses that real estate is not a get-rich-quick scheme but a long-term wealth-building strategy.
• Why invest in rental properties?
• Rental properties provide passive income (money earned without actively working).
• Real estate appreciates over time, increasing in value.
• Tax benefits such as depreciation and deductions on mortgage interest.
• Ability to leverage borrowed money (using other people’s money to buy assets).
• A hedge against inflation—as prices rise, so do rents.
2. The Four Wealth Generators of Real Estate
Turner introduces four key ways real estate builds wealth:
1. Cash Flow – The monthly income from rent after paying all expenses (mortgage, taxes, maintenance).
2. Appreciation – The increase in the property’s value over time.
3. Loan Paydown – As tenants pay rent, they help reduce the mortgage balance.
4. Tax Benefits – Investors can deduct expenses such as mortgage interest, repairs, and property depreciation.
3. Creating a Rental Property Investment Plan
Investing in rental properties without a plan is risky. Turner emphasizes:
• Setting clear investment goals (e.g., retire in 10 years, earn $5,000 in passive income).
• Deciding on the number of properties needed to reach financial freedom.
• Choosing an investment strategy (buy-and-hold, flipping, BRRRR, etc.).
4. Finding the Right Rental Properties
Turner provides detailed strategies on how to find profitable properties:
1. The 1% Rule – A property should generate at least 1% of its purchase price in monthly rent (e.g., a $200,000 property should rent for at least $2,000/month).
2. Cap Rate (Capitalization Rate) – Measures a property’s profitability by dividing Net Operating Income (NOI) by the property’s price.
3. Cash-on-Cash Return – Compares the annual cash flow to the initial investment.
4. Location, Location, Location – Choosing areas with strong job markets, low crime, and high rental demand.
5. Analyzing a Rental Property Deal
Turner teaches readers how to evaluate deals like a professional by:
• Estimating costs (mortgage, property taxes, insurance, maintenance, vacancies).
• Calculating ROI (Return on Investment) before purchasing a property.
• Using rental property calculators to project long-term profitability.
6. Financing Rental Properties
Turner discusses various financing methods, emphasizing the importance of leverage:
• Conventional Loans – Best for those with good credit and stable income.
• FHA Loans – Require a lower down payment but are limited to owner-occupied properties.
• Portfolio Loans – Offered by local banks for investors buying multiple properties.
• Private Money & Hard Money Lenders – Alternative funding sources for those who can’t qualify for traditional loans.
• Seller Financing – Buying directly from the seller with flexible payment terms.
7. The BRRRR Strategy (Buy, Rehab, Rent, Refinance, Repeat)
One of the most powerful strategies Turner shares is the BRRRR method:
1. Buy – Purchase a distressed property at a discount.
2. Rehab – Renovate to increase value and rental potential.
3. Rent – Find tenants to generate cash flow.
4. Refinance – Take out a loan based on the new value to recover the initial investment.
5. Repeat – Use the refinanced funds to buy more properties.
This method allows investors to scale quickly with minimal upfront capital.
8. Managing Rental Properties Effectively
Turner highlights how poor management can ruin a good investment. He advises:
• Screening tenants properly to avoid late payments and evictions.
• Setting up systems for collecting rent (online payments, automatic deductions).
• Handling maintenance and repairs efficiently to retain tenants.
• Hiring property managers if you own multiple properties or don’t want hands-on management.
9. Avoiding Common Mistakes
Turner outlines biggest mistakes new investors make and how to avoid them:
1. Not doing due diligence – Buying a property without researching expenses.
2. Underestimating repair costs – Renovations can quickly eat into profits.
3. Overleveraging (too much debt) – Risky if the market declines or vacancies rise.
4. Failing to screen tenants properly – Leads to evictions and lost income.
5. Not having reserves – A good investor should have an emergency fund for unexpected expenses.
10. Scaling a Rental Property Portfolio
Once investors gain experience, they can scale their business by:
• Using equity from existing properties to buy more rentals.
• Networking with lenders and partners to access better deals.
• Outsourcing tasks (property management, bookkeeping) to focus on acquisitions.
• Considering multi-family properties for higher cash flow.
⸻
4. Final Thoughts & Review Score
✅ Strengths of the Book
✔ Beginner-friendly yet detailed – Covers everything from buying to managing properties.
✔ Real-life examples & case studies – Helps readers understand practical applications.
✔ Actionable strategies – Provides clear steps for buying and scaling.
✔ Covers different investment methods (buy-and-hold, BRRRR, seller financing).
❌ Weaknesses of the Book
❌ Not enough focus on tax strategies – A deeper dive into real estate tax planning would have been helpful.
❌ More advanced investors may find some parts basic – The book caters more to beginners.
⭐ Final Rating: 4.8/5
The Book on Rental Property Investing is one of the best guides available for aspiring real estate investors. Turner’s writing is engaging, and his insights are practical. Whether you’re just starting or looking to grow your portfolio, this book offers valuable lessons to help you succeed in rental property investing.
1. Book Details
• Title: The Book on Rental Property Investing: How to Create Wealth and Passive Income Through Smart Buy & Hold Real Estate
• Author: Brandon Turner
• Publication Year: 2015
• Genre: Business, Real Estate, Investing, Personal Finance
• Pages: 341
• Target Audience: Aspiring and experienced real estate investors looking to build wealth through rental properties.
2. Overview
Brandon Turner, a well-known real estate investor and co-host of the BiggerPockets Podcast, provides a comprehensive guide to rental property investing. He demystifies the process, from acquiring properties to managing them effectively, while emphasizing wealth-building strategies through smart investing.
The book is divided into four main sections, covering:
1. The Basics of Rental Property Investing
2. Finding Rental Properties
3. Financing Rental Properties
4. Managing and Scaling a Rental Property Business
Turner shares actionable advice, case studies, and practical steps for investors at different experience levels.
⸻
3. Key Concepts & Detailed Explanations
1. Understanding Rental Property Investing
Turner starts by breaking down the fundamentals of rental property investing. He stresses that real estate is not a get-rich-quick scheme but a long-term wealth-building strategy.
• Why invest in rental properties?
• Rental properties provide passive income (money earned without actively working).
• Real estate appreciates over time, increasing in value.
• Tax benefits such as depreciation and deductions on mortgage interest.
• Ability to leverage borrowed money (using other people’s money to buy assets).
• A hedge against inflation—as prices rise, so do rents.
2. The Four Wealth Generators of Real Estate
Turner introduces four key ways real estate builds wealth:
1. Cash Flow – The monthly income from rent after paying all expenses (mortgage, taxes, maintenance).
2. Appreciation – The increase in the property’s value over time.
3. Loan Paydown – As tenants pay rent, they help reduce the mortgage balance.
4. Tax Benefits – Investors can deduct expenses such as mortgage interest, repairs, and property depreciation.
3. Creating a Rental Property Investment Plan
Investing in rental properties without a plan is risky. Turner emphasizes:
• Setting clear investment goals (e.g., retire in 10 years, earn $5,000 in passive income).
• Deciding on the number of properties needed to reach financial freedom.
• Choosing an investment strategy (buy-and-hold, flipping, BRRRR, etc.).
4. Finding the Right Rental Properties
Turner provides detailed strategies on how to find profitable properties:
1. The 1% Rule – A property should generate at least 1% of its purchase price in monthly rent (e.g., a $200,000 property should rent for at least $2,000/month).
2. Cap Rate (Capitalization Rate) – Measures a property’s profitability by dividing Net Operating Income (NOI) by the property’s price.
3. Cash-on-Cash Return – Compares the annual cash flow to the initial investment.
4. Location, Location, Location – Choosing areas with strong job markets, low crime, and high rental demand.
5. Analyzing a Rental Property Deal
Turner teaches readers how to evaluate deals like a professional by:
• Estimating costs (mortgage, property taxes, insurance, maintenance, vacancies).
• Calculating ROI (Return on Investment) before purchasing a property.
• Using rental property calculators to project long-term profitability.
6. Financing Rental Properties
Turner discusses various financing methods, emphasizing the importance of leverage:
• Conventional Loans – Best for those with good credit and stable income.
• FHA Loans – Require a lower down payment but are limited to owner-occupied properties.
• Portfolio Loans – Offered by local banks for investors buying multiple properties.
• Private Money & Hard Money Lenders – Alternative funding sources for those who can’t qualify for traditional loans.
• Seller Financing – Buying directly from the seller with flexible payment terms.
7. The BRRRR Strategy (Buy, Rehab, Rent, Refinance, Repeat)
One of the most powerful strategies Turner shares is the BRRRR method:
1. Buy – Purchase a distressed property at a discount.
2. Rehab – Renovate to increase value and rental potential.
3. Rent – Find tenants to generate cash flow.
4. Refinance – Take out a loan based on the new value to recover the initial investment.
5. Repeat – Use the refinanced funds to buy more properties.
This method allows investors to scale quickly with minimal upfront capital.
8. Managing Rental Properties Effectively
Turner highlights how poor management can ruin a good investment. He advises:
• Screening tenants properly to avoid late payments and evictions.
• Setting up systems for collecting rent (online payments, automatic deductions).
• Handling maintenance and repairs efficiently to retain tenants.
• Hiring property managers if you own multiple properties or don’t want hands-on management.
9. Avoiding Common Mistakes
Turner outlines biggest mistakes new investors make and how to avoid them:
1. Not doing due diligence – Buying a property without researching expenses.
2. Underestimating repair costs – Renovations can quickly eat into profits.
3. Overleveraging (too much debt) – Risky if the market declines or vacancies rise.
4. Failing to screen tenants properly – Leads to evictions and lost income.
5. Not having reserves – A good investor should have an emergency fund for unexpected expenses.
10. Scaling a Rental Property Portfolio
Once investors gain experience, they can scale their business by:
• Using equity from existing properties to buy more rentals.
• Networking with lenders and partners to access better deals.
• Outsourcing tasks (property management, bookkeeping) to focus on acquisitions.
• Considering multi-family properties for higher cash flow.
⸻
4. Final Thoughts & Review Score
✅ Strengths of the Book
✔ Beginner-friendly yet detailed – Covers everything from buying to managing properties.
✔ Real-life examples & case studies – Helps readers understand practical applications.
✔ Actionable strategies – Provides clear steps for buying and scaling.
✔ Covers different investment methods (buy-and-hold, BRRRR, seller financing).
❌ Weaknesses of the Book
❌ Not enough focus on tax strategies – A deeper dive into real estate tax planning would have been helpful.
❌ More advanced investors may find some parts basic – The book caters more to beginners.
⭐ Final Rating: 4.8/5
The Book on Rental Property Investing is one of the best guides available for aspiring real estate investors. Turner’s writing is engaging, and his insights are practical. Whether you’re just starting or looking to grow your portfolio, this book offers valuable lessons to help you succeed in rental property investing.