Why Value-Add Real Estate Beats Every Other Investing Strategy

Value-add real estate is THE way to invest if you’re looking for high cash flow or big boosts in equity. You may not know the term “value-add” but you’ve certainly heard about it before. If you know about flipping houses, the BRRRR strategy, and cap rates, then you probably know how to do value-add real estate. In short, value-add real estate is the strategy of taking an undervalued property, fixing it up and selling it, refinancing it, or renting it for more money than it would have made before.

Tyler Madden accidentally did his first value-add deal on his primary residence, where he put in a steep amount of sweat equity and walked away with a much more expensive home than he originally purchased. It wasn’t rocket science to Tyler, so he did this a couple more times on a few multifamily deals in his area. Now, he gets to collect serious cash flow all while using the refinance to pay back original his renovation costs. Sounds pretty good right?

Tyler is going to give you the lowdown on what value-add real estate investing is, why it beats (almost) every other strategy out there, how to find undervalued properties, and what to know before you buy. So next time you’re house hunting, don’t look for the best home on the block, look for the one that needs the most work!

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Grab “The Book on Estimating Rehab Costs”
The Book on Estimating Rehab Costs
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Check out Last Week’s Episode on High-ROI Rental Renovations:

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How to Estimate Rehab Costs:

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Here’s How to Increase the Value of Your Home or Investment Property:

11 Ways To Increase the Value of Your Home or Investment Property in 2024

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Are Value-Add Apartment Buildings Still a Worthwhile Investment Opportunity?

Are Value-Add Apartment Buildings Still a Worthwhile Investment Opportunity?

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Connect with Tyler on BiggerPockets:
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Follow Tyler on Instagram:
@tylermadden or https://www.instagram.com/tylermadden/

00:00 Why Value-Add Real Estate Works
02:16 Residential vs. Commercial Value-Add
02:48 How to Find Value-Add Properties
04:51 Before You Buy a Value-Add Property
06:18 Flip, BRRRR, House Hack or Hold?

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