Why Affordable Properties Are Still the Smartest Way to Build Wealth in 2025

By Jorge Vazquez, CEO of Graystone Investment Group

Introduction: Picking Up Where We Left Off

So, you read Part 1. You know I’m not chasing million-dollar listings or flashy penthouses. I’m chasing returns—and they’re still hiding in affordable properties.

Back then, I told you how a modest home in a working-class neighborhood outperformed a luxury condo when it came to real returns. Fast forward to 2025? That principle hasn’t changed—if anything, it’s gotten stronger.

This second part goes deeper. You already know affordable properties work. Now let me show you:

• Why they’re even more valuable in today’s high-rate economy

• The financing tricks we use to scale faster

• Real stories from Graystone investors growing one door at a time

• And mistakes to avoid so you don’t crash the plane on your second deal

Let’s dive in.

1. 2025 Market Update: What’s Changed Since Part 1?

Here’s what’s wild—despite interest rates going up, many affordable homes have actually increased in value. Yup, the bottom tier of the market is still hot. Why?

• First-time buyers are getting priced out of the “pretty” homes

• Some landlords are finally selling, which gives smart investors an opening

• Rents are climbing, and insurance costs are starting to settle

Even with rates that make people flinch, the numbers can still work when you find the right deal.

2. Why High Rates Help Us (Yes, Really)

Most investors hear 7%+ interest rates and panic. But savvy ones—Graystone clients, my students at Property Profit Academy—we get excited.

Because here’s the thing:

• Higher rates mean fewer buyers

• Fewer buyers mean better purchase prices

• Better prices mean more room for equity and stronger returns

You can always refinance later. But you can’t rewind time and scoop up a property at today’s prices once the market shifts.

3. The 2025 Math (Theoretical Edition)

I won’t throw exact numbers at you, but imagine this:

An investor picks up a solid property in a rental-friendly area at a decent price. After a light rehab and putting in a reliable tenant, the property cash flows. Not break-even. Actual profit every month—even with today’s rates.

And with some seasoning? That same investor can refinance, pull out some equity, and roll those funds into the next deal.

Repeat this play, and you’re not just buying houses—you’re building wealth.

4. Case Study: Scaling One Door at a Time

Let me tell you about one of our Graystone investors. He started small—one property, one strategy, and a single source of funding. Nothing fancy.

He focused on the same type of house every time. Used the same crew. Worked with our management team to stay hands-off. And every time he refinanced, he moved that capital into the next property.

Now he’s got a mini-portfolio, all cash flowing. His life didn’t change overnight. But it did change consistently.

That’s what affordable investing is about. Not magic. Momentum.

5. The Financing Stack (Built for 2025)

Here’s what investors are stacking right now:

• DSCR Loans – These use the rental income of the property to qualify. Great for hands-off investors.

• Hard Money – Perfect for short-term rehabs and BRRRR plays.

• Private Money – Friends, family, networked capital. We teach this all the time.

• HELOCs – Tap into your primary home equity without touching your bank account.

These aren’t gimmicks. This is how real people are doing it—mixing strategies to reduce out-of-pocket risk and scale faster.

6. Mistakes That Still Trip Up New Investors

Alright, let’s keep it real. Some investors still get in their own way:

• Buying for looks, not numbers

• Skipping inspections and getting burned on repairs

• Ignoring tenant screening and winding up in court

• Forgetting to budget for future big-ticket items

If a property won’t produce a healthy return on Day 1, even at today’s rates, it’s not your deal. Let it go.

7. BRRRR Still Works—If You Play It Right

Yes, I still BRRRR. All the time.

Buy cheap. Fix it. Rent it. Refinance. Repeat.

That cycle still works in 2025 if you buy smart and stay patient through the process. The key is finding properties in markets that support rental demand and have room for appreciation.

We teach this at Property Profit Academy because it’s the foundation of how I built my portfolio—one affordable deal at a time.

8. Why I Still Like Section 8 Rentals

Section 8’s not dead—it’s thriving. Especially in markets where wages haven’t caught up with inflation.

• Guaranteed rent from the government

• Stable tenants that often stay for years

• Rent increases are built into the system if you stay compliant

The trick? Keep your property clean, safe, and functional. You don’t need marble counters. Just working AC, a decent roof, and no leaks.

That’s what I call Tonka-style investing. Durable. No fluff.

9. Don’t Self-Manage (Unless You Love Headaches)

Managing a portfolio of affordable rentals yourself? It’s doable—but brutal.

Instead, try this:

• Use property management software to track rent and expenses

• Hire virtual assistants to help with tenant communication

• Or better yet, work with a professional manager (like Graystone) so you can focus on scaling

Systems = sanity. Don’t be the investor who’s plunging toilets on Thanksgiving.

10. Why the Affordable Play Isn’t Going Anywhere

Let’s fast forward.

Luxury condos? Still around.

High-end rentals? Still overpriced.

But affordable housing? Always needed. Why?

• Wage growth is slower than housing growth

• Building costs are still high

• Inflation isn’t done with us yet

That means long-term rental demand is shifting to affordability. If you position yourself now, you’ll have the inventory everyone else wants next year.

Final Thoughts: Be the Garbage Man (Still)

Look—I get it. These homes don’t win awards. They’re not trending on TikTok. But you know what they do?

• Put cash in your account

• Build equity without gambling

• Create stability for you and your family

I started with “junk” houses and got laughed at. Now I get called for advice.

Buy the house nobody else wants. Make it safe. Make it livable. Rent it. Repeat.

And remember:

Wealth doesn’t come from what you flip—it comes from what you keep.

Keep it consistent, stay patient, stay true—if I did it, so can you.

Thanks for tuning in—until the next article, take care and keep building!

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