Rethinking Real Estate: Why Bigger Isn’t Always Better
- Rose Pelipel
- May 5
- 4 min read
As my businesses have grown and evolved, so too has my philosophy on real estate investing. For years, I believed that financial freedom meant accumulating as many "doors" as possible, aiming for $100–$200 in monthly cash flow per unit. This is what BiggerPockets blogs and podcasts taught us, right? It was a common narrative in the real estate community: the more units, the closer you are to independence. But today, I realize — I was wrong.
For most individuals who want real estate as a part of their financial portfolio — not their entire identity — the key isn't volume. It’s owning a small but mighty portfolio.
The Traditional Strategy (And Why It’s Still a Good Starting Point)
Early on, I would preach the value of:
- Small multifamily properties (2-4 units),
- Single-family homes with in-law suites, or
- Starter condos if the budget was tighter.
These are fantastic first purchases. Every first-time homebuyer should seriously consider assets like these, depending on your market. They allow you to get your feet wet, experience being a landlord, and start building equity. Not to mention, you can utilize primary residence low money down financing to purchase these assets.
But after you’ve successfully executed that initial strategy, an important question arises:
What’s next? Should you keep buying residential properties? Or is it time to go commercial?
Here’s my updated view and how I believe real estate portfolios should be structured in today’s market:
My New Philosophy: A Smarter Roadmap “WHAT WOULD CASSIDY BUY?”
1. Buy a Starter Home Young
Your first purchase should be a primary residence with potential:
- House hack if you can (rent out extra rooms or units).
- Live there for a few years.
- Eventually convert it into a rental.
This gives you low down payment financing and your first true asset. This doesn’t and shouldn’t be your forever home, far from it. Something small that hopefully will eventually become a bank for you (more on this later).
2. Maybe Do It Again
Depending on your lifestyle, it can make sense to repeat this process once more:
- Buy another starter-style property.
- House hack or rent.
- Build more equity and cash flow.
But beyond two properties, residential investing becomes more work than reward for many.
3. Own the Building Your Business Operates Out Of
If you’re a business owner, this is a game changer.
Use 10% down Small Business Administration (SBA) loans to buy your business's real estate.
• I did this in 2024 with tremendous results.
• Three perfect examples in one of our "What Would Cassidy Buy" articles here: Alexandria, VA would have made excellent buys.
Owning your business address builds personal wealth and shields you from rising lease costs. Not to mention, if you use it correctly, it could be a revenue generator for your business (marketing, signage, events, etc.).
👉 Read the full article here: What Would Cassidy Buy?
4. Buy a Secondary Home with Low Money Down
Another smart move:
- Buy a second home with 5–10% down.
- Choose a market that allows short-term rentals.
Ideally, you’ll cover costs or even cash flow modestly. This expands your portfolio without heavy leverage or huge upfront capital and also allows you to buy something that you can enjoy. Think beach house, mountain house, lake house. Yes, I believe you should buy this asset before you buy your forever home.
5. Buy Your Forever Home (When Ready)
The American dream is shifting.
• Forever homes are getting more expensive.
• Borrowing costs are higher.
That's why executing the earlier steps matters — you can leverage your equity to afford the home you truly want, rather than stretching thin. Now, this is individual dependent, and maybe you don’t want the mansion, but the cost to own a forever home is getting very, very expensive. That’s why you have to execute steps 1-4 first. You have these assets that become the bank so you can leverage your equity for a larger down payment on your forever home.
6. Transition Into Passive Real Estate Investing
Once you’ve built your foundation:
- Stop taking out more loans.
- Stop signing on more debt.
- Stop managing properties yourself.
Instead, invest passively in syndications, real estate funds, or trusted partnerships. You’ll still enjoy:
- Tax advantages (depreciation, deductions),
- Consistent cash flow,
- Strong returns — without the headaches.
In many cases, the returns from passive investments outperform small, actively managed portfolios anyway! Reach out to BPG Holdings to see what offerings we currently have available that could be a good fit for your financial needs.
Final Thoughts
Real estate is still one of the greatest tools for building wealth — but it’s not about how many properties you own. It’s about owning the right ones at the right time in your life.
I hope this roadmap helps you think differently about your journey.
For further insights, check out our related articles:
Happy Investing!
Cassidy Burns
Founder and Managing Member
BPG Holdings
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