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!


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Top Mistakes Homeowners Are Making in 2026 (And How To Avoid Them)

By Dusty Rhodes • March 23, 2026
Let’s be clear: selling your house is absolutely possible right now. According to the National Association of Realtors (NAR), roughly 11k homes sell every day in this country. And the sellers who are making their moves happen all have one thing in common: they’ve adjusted their strategy to match today’s market. They’re realizing inventory has grown. Homebuyers are more selective. And buyer expectations are higher. The sellers who struggle are usually approaching today’s market with yesterday’s expectations. Here are the three biggest mistakes they’re making – and how to avoid them. 1. Pricing Based on What Their Neighbor Got a Few Years Back Setting your price is the most important decision you make when you sell – and the one that’s most often mishandled. Realtor.com data shows almost 1 out of 5 sellers in 2025 had to drop their price. Here’s what those sellers went wrong. Buyers have more choice and more negotiating power now that inventory has grown. And house hunters will actively avoid your house is if feels like it’s priced too high. That’s why overpricing usually leads to: Fewer showings Less competitive (or lowball) offers Longer time on market And all three of those side effects are things you don’t want to deal with. What To Do Instead: The good news is the cure is simple. Just price for today’s buyer, not yesterday’s headlines. Lean on your agent’s knowledge of recent comparable sales, current competition, and local buyer behavior to land in the value “sweet spot” that drives traffic and urgency from day one. 2. Trying To Skip Repairs That Buyers Now Expect A few years ago, you could sell as-is and still get well above asking. Today? Not so much. Right now, NAR says two-thirds of sellers are making at least some repairs. And the reason why is simple. In a market with more inventory, buyers compare homes side by side. Homes that don’t show well (or feel dated) are going to lose attention quickly, even if the issues are minor. What To Do Instead: Ask your agent which high-impact, low-stress updates they’d recommend for your house. The goal isn’t perfection. It’s helping buyers see themselves moving in without a mental to-do list. Small investments in staging, repairs, and curb appeal can make a huge difference in how quickly offers come in – and how strong those offers are. 3. Playing Hardball When Buyers Try To Negotiate Today’s buyers have housing affordability at the top of their minds. And since money is already tight, they’ll be pickier and will probably ask for some compromises from you. Whether that’s making repairs, giving them a credit at closing, or taking just a few thousand dollars off your asking price, negotiating is normal again. So, if something pops up in the inspection, you’re going to need to be open to talking about it. If you’re not, you may very well see your buyer walk away. And some sellers are figuring this out the hard way. Redfin data shows one of the big reasons home sales fell thru in 2025 was inspection or repair issues. Odds are those homeowners weren’t willing to flex a bit to get the deal done. What to Do Instead: Meet with your agent to make sure you understand what buyers in your area care the most about. Align your price with value, present the home clearly and confidently, and stay open to reasonable negotiations that keep deals moving forward.

10 Aging-in-Place Features Pros Swear By

By Dusty Rhodes • March 16, 2026
They’re often called aging-in-place features, but things like curbless showers, nonslip flooring and wide walkways and doorways can benefit everyone, no matter their age or ability. “Regardless of aging in place, there is a place for these in day-to-day life, whether it be a teenager on crutches, a family member having had surgery, active kids,” designer Dana Bass says. “It’s not just about aging in place. We’ve got to account for unplanned life emergencies.” Designer Tammy Battistessa of Ellaire Kitchen & Bath Design agrees. “Whenever possible, I include aging-in-place and universal design features in every project, as I believe many of these features benefit clients of all ages and abilities, in addition to allowing a client to safely remain in their home for a longer period of time,” she says. Creating a home that can adapt also makes it more sustainable. “Aging in place is a key element to making legacy homes that can evolve over time,” architect Tim Barber says. With all that in mind, we asked more than 50 home design and construction professionals to share the aging-in-place features they always recommend. Here are the 10 that came up again and again. 1. Wide Walkways and Doorways Planning ahead is one of the most important steps when incorporating aging-in-place features. Many of these elements require thoughtful design and construction, so it’s wise to start early — and to consider hiring professionals who understand the nuances. “Thinking through how you will really use the space makes all the difference,” designer Haiku Durden of HDS Design says. “Having a designer involved really makes a difference.” A professional can help you create a plan that works for your current needs and anticipates future ones. “We currently default to aging-in-place features when our clients are near retirement or retirement age,” says designer Jenny Guggenheim of Guggenheim Architecture and Design Studio . “Preplanning by adding blocking behind the wall finish, spacious floor planning to allow for wheelchair or walker use.” In fact, spacious layouts are among the most commonly recommended aging-in-place strategies. Wide walkways and doorways — and generous clearances around furniture and fixtures — make it easier for anyone to move through the home comfortably. Installing a continuous flooring material throughout also reduces tripping hazards caused by changes in height or texture between rooms.

The Price You Set Can Make (or Break) Your Sale

By Dusty Rhodes • March 2, 2026
There’s one decision you’re going to make when you sell that determines whether your house sells quickly, or it sits. Whether buyers make an offer, or scroll past it. Whether you walk away with the maximum return, or you end up cutting the price later. And that’s your asking price . The #1 Mistake Sellers Make Today: Trusting the Wrong Number If you’re thinking of moving and trying to figure out what your house may sell for, it’s tempting to start with an online home value tool. They’re fast, free, and easy. And you don’t have to talk to anyone. But here’s the problem: they don’t know your house. And that can be a bigger drawback than you realize. Where Online Estimates Fall Short Online tools often lag behind the market. They look in the rearview mirror, relying on closed sales and delayed information. And in that sense, they’re using incomplete data . That’s not a miss in how these systems are built. Some information just isn’t available online. Bankrate explains: “ While these tools can be a useful starting point, keep in mind that they typically do not provide the most accurate pricing. Algorithms can only rely on the information available; they can’t account for things like a home’s condition or renovations made since the last public information was updated.” They can’t see: The unique features that make your house special All the work you’ve put in to keep it in good condition Or, how in-demand your specific neighborhood is right now So, while they may do a good job in some cases, they can’t be as accurate as a local agent who has boots on the ground day in and day out. In a market where buyers have more options, a seemingly small margin of error can cost you thousands if you price too low, or weeks of lost momentum and time if you price too high. If you want to sell for the most money and in the least amount of time, you don’t want the fast answer on how to price your house. You want the right one. That’s why the savviest homeowners today don’t rely on algorithms when it actually matters. They rely on people, specifically trusted local agents. What an Expert Agent Brings to the Table According to 1000WATT , sellers overwhelmingly believe real estate agents have the best sense of a home’s true value, far more than any automated tools.