I Bought 30 Rental Units in 5 Years, EVEN with High Interest Rates

TL;DR

Jesse Walters scaled from zero to 30 rental units in 5 years by finding off-market deals, using creative financing, and partnering with builders despite high rates.

Key Points

• 1.Jesse started with a simple turnkey single-family in 2021 and scaled methodically. He bought a Columbia home for $165K with 20% down, rented it for $1,500/month, then kept buying through rising rates — including a fourplex at 8% interest that grossed $3,000/month.
• 2.Off-market deal flow comes primarily from agent relationships and direct mail. Jesse pays full 3% buyer-agent commissions without negotiation, making agents eager to call him first on distressed listings; five properties in one year came from postcards alone.
• 3.His underwriting formula is: gross rents minus debt/taxes/insurance minus 30% for expenses. If the deal breaks even or better after that conservative math, he holds it; if not, he flips it — generally keeping multifamily and flipping singles.
• 4.A 2025 duplex BRRRR netted near-zero cash in after a full refinance at 5.8%. Bought for $210K, put $30K in cosmetics, appraised at $330K, DSCR-refinanced to pull all capital out plus profit, and now earns $2,800/month gross.
• 5.His worst 2025 flip came in at roughly $600 profit after months of pain. Bought a ranch walkout for $265K, budgeted $40K renovation but spent $65K, sat on the market four months through winter, then lost $10K on a leaning deck and a roof at inspection.
• 6.The signature 2025/2026 deal is converting an 18-room motel into 11 affordable apartments. Purchased for $325K in his hometown, projecting $300K renovation, targeting $9K+/month in rents; financed with zero cash down using cross-collateralization against a fully paid-off condo.
• 7.Jesse secured $0 down on the motel by shopping multiple local banks and using cross-collateralization. The first bank demanded 25% all-cash; a second local bank accepted 20% down using a paid-off condo as collateral, effectively eliminating his out-of-pocket cost.
• 8.A builder partnership model lets Jesse do new construction with minimal hands-on work. He buys lots on MLS (acting as his own agent), the builder constructs at cost with no markup, they list and sell the finished home, then split profits 50/50 — one deal yielded $15K each on a $330K sale.