4 Key Ways to Build Wealth in Real Estate

Dusty Rhodes • December 9, 2019

I'm sure by now most of us have wondered, "Everyone tells me that I should invest in real estate, but how do is it possible to make money?" Well the good news is, there are ways, but there are a few things that you need to keep in mind to really be successful at it. From BiggerPockets.com, here are 4 Ways to Build Wealth in Real Estate:


There are so many reasons to invest in real estate! Talk to 10 investors, and you will get 10 different answers. Some will say that they appreciate the extra cash the investment brings in each month. Others will say that they appreciate the appreciation (see what I did there?) and like to see their properties double and even triple in value. Still other investors will tell you that they like to have control over where their money is.


The truth is, the list of reasons people invest in real estate is long. This is because there are many potential ways to build wealth through real estate investing. On the flip side, though, there are plenty of reasons not to invest and there is certainly risk to investing in real estate. While no investment is risk-free, and there are never any guarantees, there are many benefits to investing in real estate and ways to mitigate your risk.


4 Main Ways to Build Wealth in Real Estate

OK, so now that I’ve convinced you to go out and spend all your money on a rental property, let's talk more specifics. The four main ways to generate and build wealth in real estate include tax savings, loan amortization, cash flow, and appreciation. Not every investment will bring you all these benefits, but your particular investment strategy is up to you.


Taxes

Let’s start with the most boring topic on the history of the planet: taxes! I know, I know, but we have to go there. And honestly, I bet the more you learn about taxes, and tax savings, the more interesting this topic will become!

In my opinion, this reason alone is enough to buy one single rental property. This won’t make you rich by any means, but it allows you to tap into a whole new world of tax saving strategies. And on things you already use and buy anyway! Think: your cell phone, internet bill, your home office, the list goes on and on. These are all potential write offs!

Now, I am no expert, and nothing can replace the advice of your CPA, but check out this article written by someone who is much wiser than me on the topic. Oh, and did I mention that he’s a real estate made millionaire? The fact is the government wants you to buy real estate. It will incentivize you to provide housing for its citizens in the form of extra tax write-offs and 1031 exchanges, to name a few.


Loan Amortization

The next thing I want to talk about, and perhaps my favorite, is amortization. What does that even mean? In a good real estate investment, if you do it right, someone else will be paying down your mortgage. And your interest, taxes, insurance and other expenses. Hopefully even your property manager’s fee. Notice that I said in a “good” real estate investment AND “if” you do it right. This means that you must not only buy it at a price that makes sense, you also have to manage it effectively.

Both are do-able, but neither just happen. In many markets, rents can cover all these expenses, and you can automatically build wealth simply by keeping your property occupied.


Cash Flow

Now on to the real reason you are reading this article: you want to know how much money you can make. This is known as cash flow and is the money that an investor takes home after all expenses are paid.

A good investment cash flows most of the time. Notice, I don’t say always, because there will be times when your expenses exceed your income. My properties average around $300 per month. That is money in my pocket. When I am assessing a potential investment, I consider a good investment one that brings in at least $3,000 in income per year.

Again, this isn’t a huge number but when you consider that the value is likely increasing over time and somebody is paying down a mortgage for you, you can start to build some wealth passively. You can also duplicate this over and over again until you achieve your income goals.


Appreciation

The last topic I want to cover is the icing on the cake: appreciation. If you make a good investment, in the right area, you not only have someone paying off your loan and building you equity in your home, you also have a few hundred extra dollars in your pocket. On top of all of this, your property should increase in value each year. This is called appreciation. And a conservative appreciation rate for the average property in America is over 3%.

This is not a startling rate but let's consider a $100,000 single family home investment. You put $20,000 on a 30-year mortgage at a 5% interest rate. This $80,000 loan will be paid off in 30 years, by someone else, and in that time, you should make $3,000 per year in income totaling $90,000 over this term.

Furthermore, if your initial investment of $100,000 increased at 3% per year, after 30 years it would be worth $235,656. Now, let’s say you completed a $30,000 remodel that increased the total value of your investment by $45,000. The difference, $15,000, can now be added to your $235,656 home value and $90,000 in income.

All in all, your $20,000 investment could turn into $340,656. Now, you could sell the house and net close to $310,000 after you pay realtor fees and closing costs, or you could hold onto it and enjoy a significantly higher cash flow since your mortgage is paid off.



Source: BiggerPockets.com


 

Dusty Rhodes Properties is the Best Realtor in Myrtle Beach! We do everything in our power to help you find the home of your dreams. With experience, expertise, and passion, we are the perfect partner for you in Myrtle Beach, South Carolina. We love what we do and it shows. With more than 22 years of experience in the field, we know our industry like the back of our hands. There’s no challenge too big or too small, and we dedicate our utmost energy to every project we take on. We search thousands of the active and new listings from Aynor, Carolina Forest, Conway, Garden City Beach, Longs, Loris, Murrells Inlet, Myrtle Beach, North Myrtle Beach, Pawleys Island, and Surfside Beach real estate listings to find the hottest deals just for you!


Share

Should You Pay for Your Buyer’s Closing Costs? What Sellers Need To Know.

By Dusty Rhodes • June 15, 2026
A few years ago, sellers could get away with saying “no” to just about everything. No repairs. No concessions. No negotiation. If buyers wanted the house, they pretty much had to take it on the seller’s terms. But now that inventory’s grown, negotiations are becoming a normal part of the process again. That’s why one of the most important things sellers need to understand right now is this: The goal isn’t to “win” every negotiation. Sometimes, it’s worth meeting buyers where they are to get a deal done, fast. One example? Helping with a buyer’s closing costs. Let’s break that down, so you know what to expect if it comes up in your sale. What Are Buyer Closing Costs? Closing costs are the extra expenses buyers pay on top of their down payment when they purchase a home. Freddie Mac gives some examples : Loan origination fees Appraisal and inspection costs Title and attorney fees Survey fees and more Typically, buyer closing costs range from about 2% to 5% of the home’s purchase price. So, on the typical $400,000 home, that could mean anywhere from $8,000 to $20,000 out of pocket. And in today’s affordability-challenged market, that upfront cash can be a major hurdle for some buyers – even if they can comfortably afford the monthly mortgage payment itself. That’s why more people are asking sellers for help. And More Sellers Are Saying “Yes” According to the latest data from Zillow , 67% of sellers reported paying some or all of the buyer’s closing costs in 2025 ( see chart below ):

How to Stage Your Outdoor Space to Sell Your Home Faster

By Dusty Rhodes • June 8, 2026
When preparing to sell your home , the outside matters just as much as what’s inside. Learning how to stage your outdoor space to sell can help create a memorable first impression, boost curb appeal, and make buyers feel emotionally connected before they even walk through the front door. From refreshing landscaping to creating cozy gathering areas, thoughtful outdoor staging can help your home stand out in a competitive market. In this Redfin guide, we’ll share expert-backed tips for transforming your yard, patio, porch, or garden into a space buyers can easily picture themselves enjoying. Whether you’re preparing a bungalow in Boise, ID , or listing a modern home in Savannah, GA , these outdoor staging ideas can help sellers create inviting spaces that feel polished, functional, and move-in ready. Why outdoor staging matters when selling a home Outdoor staging helps buyers form an emotional connection with a home before they even step inside. A clean, inviting exterior can make a property feel more cared for, while thoughtfully designed outdoor spaces help buyers imagine themselves relaxing, entertaining, or spending time outside. In competitive markets especially, those details can help a listing stand out from similar homes nearby. “Staging allows buyers to see the potential of the space and aids realtors in securing high-investment buyers,” shares Julia, CEO of JP Urban Moving . “Staging is an aspect of the moving industry that customers generally don’t consider, but it’s vital and on the rise.” Outdoor staging can also help: Create a stronger first impression during showings. Highlight usable outdoor living areas like patios, porches, and backyards. Make the home feel move-in ready . Showcase the lifestyle the property offers , not just the structure itself. Help buyers remember the home after touring multiple listings. Focus on curb appeal first Curb appeal plays a major role in shaping a buyer’s first impression of a home. Before buyers notice updated interiors or spacious layouts, they’re already evaluating the condition of the yard, landscaping, and exterior maintenance. “Ensure your home is move-in ready by maximizing its curb appeal and value through thoughtful landscape design,” suggests Fel Quinn, Marketing Director at TerraVita Landscape & Gardening Inc. “Carefully consider how the trees, shrubs, and perennials add interest while keeping the space low-maintenance. Sometimes less is more – by prioritizing strategic planting and the overall health of your landscape, you can create a welcoming space that is both well-kept and inviting.” To improve curb appeal before listing your home: Trim overgrown trees and shrubs. Refresh mulch in flower beds and garden areas. Mow and edge the lawn regularly. Keep walkways, driveways, and entryways clean and clutter-free. Choose landscaping that looks attractive while remaining low-maintenance. Create outdoor spaces buyers can picture themselves using When staging an outdoor space , the goal is to help buyers imagine how they would actually live there. A cozy patio setup, welcoming front porch, or peaceful backyard can make the home feel like a retreat rather than just another property on the market. Buyers are often drawn to spaces that feel functional, relaxing, and easy to enjoy from day one. “Think about it: It’s Friday afternoon, you just got off a busy work week, you’re dreaming of how long until you escape to your home, that peaceful haven from the chaos,” says Justin Wilson of American Irrigation Repair . “When you’re selling your house, you’re not just selling just the structure, you’re selling a vision of how a buyer feels when they step on the property.” To create outdoor spaces buyers can connect with: Arrange simple seating areas on patios or decks. Add outdoor pillows or neutral decor for warmth. Incorporate planters or flowers for natural color. Keep pathways and gathering spaces open and uncluttered. Highlight features like fire pits, gardens, or dining areas. Use lighting to make the space feel inviting during evening showings. Less clutter, more function: Keep outdoor staging simple When staging outdoor areas, simplicity often has the biggest impact. Buyers want to see spaces that feel open, functional, and easy to maintain, rather than overcrowded with furniture, decorations, or excessive landscaping features. A clean and thoughtfully arranged yard allows buyers to focus on the home itself while still appreciating the outdoor lifestyle it offers. “When staging an outdoor space to sell, focus on making it feel clean, welcoming, and easy for buyers to picture themselves comfortably living in and using the space,” says Beth Wren of Copper Creek Landscaping . “The goal is to create an outdoor space that feels polished, functional, low-maintenance, and like a natural extension of the home.” To keep outdoor staging simple yet effective: Remove broken furniture , excess décor, and unused yard items. Define seating areas without overcrowding the space. Add fresh mulch and trim overgrown plants. Highlight one or two focal points , like a bird bath or statement planting. Don’t forget the emotional connection buyers feel outdoors Outdoor spaces often leave the strongest emotional impression during a home tour. Long after buyers forget square footage or listing details, they tend to remember how a home felt – especially in areas where they can imagine relaxing, gathering, or unwinding. A thoughtfully staged exterior helps turn a property into something more personal and memorable. At its core, outdoor staging is about selling a feeling as much as a space. Buyers respond to environments that feel peaceful, cared for, and inviting, where they can easily picture everyday moments unfolding. Key emotional drivers in outdoor staging include: A sense of calm and retreat from daily stress. The feeling of a “personal oasis” or private escape. Warmth and comfort created through greenery, lighting, and layout. Subtle signals that the home has been well cared for over time. Spaces that feel ready for connection , whether with family, friends, or nature. How to stage your outdoor space to sell successfully Staging your outdoor space is about more than improving curb appeal – it’s about helping buyers imagine the lifestyle your home offers. Small updates like fresh landscaping, defined seating areas, lighting, and thoughtful decor can make your property feel more welcoming, memorable, and move-in ready. By taking the time to stage your outdoor space to sell, you can create a strong first impression that helps your home stand out to potential buyers.

What a Builder Warranty Covers on New Constructions (and What You’re on the Hook for Yourself)

By Dusty Rhodes • June 1, 2026
Buying a newly constructed home can come with a number of perks, one of them being a builder warranty. Now, the assumption is that the warranty means the builder will assume financial responsibility for anything that breaks . The truth is, while a builder warranty is issued to most new constructions, it covers a very specific list of features in and on the house. Understanding what is covered by this warranty and if you'll need a home warranty in addition to your insurance is an important step for first-time buyers of new-construction homes. Home warranty vs. builder warranty There are importants differences between a builder warranty and a home warranty . The primary difference is that a builder warranty covers new construction or a remodel by a builder. Most newly built homes come with a builder warranty. A home warranty applies to existing properties and covers appliances (like the oven, range, and garbage disposal) and household systems (like electrical, plumbing, heating, and cooling). And while a builder warranty is provided by the builder, a home warranty is purchased by the buyers. What’s covered and what’s not? The lifespan of a builder warranty depends on the specific features of the house. However, the typical builder warranty lasts six months to two years, with some lasting up to 10 years for "major structural defects" like an unsafe roof. While there are differences in warranties from builder to builder, in general, they should cover all of a home’s materials and workmanship. In most cases, that includes: Concrete foundations and floors Dry basement Clapboard and shingles Landscaping Carpentry Thermal and moisture cover Waterproofing Insulation Roofing and siding Doors and windows Glass Garage doors Paint Plumbing Electrical Heating and cooling Septic system Most builder warranties don't cover: Household appliances Defects resulting from work conducted by the homeowner or anyone else after the builder's work is completed Shrinkage and expansion of the house Normal fading of paint Shrinkage of joints/minor cracking Weather-related issues Dampness/condensation caused by failure of the homeowner to maintain adequate ventilation Insect damage Builder warranty essentials While a builder warranty is an “absolute must” if you're buying a new home, it shouldn't make you feel too comfortable, says Robert Pellegrini Jr. , Esq, president of PK Boston, a real estate law firm in Massachusetts . “A builder warranty can give a false sense of security to homebuyers, so you need to be careful.” You might assume something is covered that actually isn't. It’s up to you to ask your builder for the details of the warranty and, ideally, have an attorney look over the contract. “It's a significant negotiation—the builder wants to be responsible for essentially nothing, and it's in the buyer's best interest to have the builder on the hook for as much as possible.” Before you sign the contract, make sure you know not only what is and isn't covered, but also the length of the coverage. Pellegrini says you should also make sure you understand how to notify the builder should something go wrong during the warranty period. If you don't notify the builder in accordance with the contract terms, it could void the warranty. Some of the biggest disagreements arise when the cause is the issue, and the question is: "Was the damage due to neglect during building or to misuse by the homeowner?" For example, if a homeowner decides to clean his paintbrushes in his kitchen sink after he moved in, but doesn't realize that doing so will render the septic system inoperable, he will be liable for replacing it at his own expense. It’s not always cut and dried, though. “If homeowners act in good faith and work well with the builder, the builder is more apt to help you, even if it's not a warrantied item,” Pellegrini says. If the builder goes out of business, however, all bets are off. “In most cases, the buyer is out of luck,” he adds.  Bottom line? If you buy a new construction, make sure you get a builder warranty. But don't bank on that warranty covering everything that might go wrong with your home. While you should try to get as much coverage from your builder as possible, repairs and maintenance fees are all part of the homeowning game.