Imagine spending thirty hours to potentially earn over $100,000—who wouldn’t jump at that opportunity? This is exactly the kind of success story David Lecko, CEO of DealMachine, narrates when advising on snagging lucrative real estate deals in 2025. After a slew of calls, numerous mailers, a significant property rehab, and two evaluations, David found himself with a rental property worth six figures in equity!
Welcome back to the BiggerPockets Real Estate podcast! Here, we revisit with David, who’s carved a path to financial independence through a portfolio of nineteen cash-flowing, appreciating properties. What’s his winning formula? Repeatedly purchasing a similar kind of property in his well-studied market—Indianapolis, Indiana. By sifting through tax-delinquent properties that meet his criteria and leveraging the BRRRR method (buy, rehab, rent, refinance, repeat), David smartly transitions from one investment to the next.
However, as David settles into a new chapter in Austin, Texas, he encounters the challenge of managing properties from a distance. While most real estate investors might go the route of hiring a property manager, David opts to self-manage with the help of an assistant acting as his local overseer. Join us as David divulges the details of his latest venture and imparts strategies for investors eager to gain an advantage in 2025!
—
Dave kicks off the discussion by bringing up an age-old debate: do BRRRR tactics still yield results? David Lecko joins him to assure that today’s market can still provide whopping profits—even halfway through 2024! He speaks from experience, having transitioned from a tech worker to a successful real estate investor with a thriving portfolio in Indianapolis.
A year ago, David shared insights on this podcast, leaving everyone on the edge of their seats with upcoming large-scale deals. Now, he’s back to fill us in on his journey and future plans for 2025.
For those who missed David’s past episode, it closely chronicled his transition from burnt-out techie to managing over $2 million in property assets. His foundational strategy revolves around the BRRRR approach perfected by BiggerPockets—transforming undervalued homes into lucrative real estate by renovating, renting, and refinancing.
Let’s find out what’s been up with David these past months:
—
David skillfully shares that the biggest deal he managed to nail was sourced from a tax delinquent list in Indianapolis—a goldmine for nabbing remarkable buys. Here’s the deal: someone could own a mortgage where yearly property taxes are normally escrowed along with each mortgage payment. However, sometimes this slips and results in a ‘tax delinquent’ status. Subsequently, properties can be auctioned unless owners rectify outstanding taxes. David explains how snagging this list early enables investors to step in and relieve sellers of these burdensome properties before they hit the auction block.
One particular snag came from negotiations with an out-of-state orthodontist who faced a hefty headache with several properties in disrepair due to neglectful management. After David’s contact, a deal was struck where he purchased one property below its original purchase price, and with some extra help, even linked up the orthodontist with his contractor, leading to further transactions beyond his purchase.
Through this deal, David offers insight into the financial benefits achieved by fostering good communication and leveraging reputable rehab reports to prove property transformation, ultimately increasing its appraisal value significantly. This sort of smart maneuvering reaped him an extra $100,000!
—
Shifting gears, they delve into the challenges and strategies of managing out-of-state investments. David confesses it isn’t for beginners. Still, for experienced investors, it’s a feasible option when leveraging a trusted assistant—especially helpful when this person is situated locally and versed in the customary processes.
In terms of scaling, David regularly taps into a systematic approach with consistent types of properties—his so-called “buy box”—to streamline acquisitions. This strategic focus streamlines decisions, allowing potential investments to be quickly vetted. In tandem, he draws on data analytics to optimize each property’s profitability.
—
With an eye on the future, David emphasizes the vital role AI will play in possibly revolutionizing property research and underscoring potential investment opportunities before they surface onto mainstream platforms. This proactive approach could afford early-stage investors a leg up in a fast-evolving market.
Ultimately, David’s steadfast philosophy remains: take the right steps today, because waiting can often cost you more in opportunity loss over time. Even if current conditions seem daunting, today’s effort compounds over the years, shaping what tomorrow brings.
—
As the episode closes, David’s resounding success serves as a beacon for novice and experienced investors alike. The shared experiences and strategies might just guide aspiring real estate magnates through the nuanced, challenging, yet rewarding world of property investment. If you’re eager to follow in David’s footsteps or learn more about his journey, links to his digital presence and projects are tucked into the show notes.
Thank you for tuning in, and we look forward to having you join us on the next BiggerPockets podcast! Don’t forget to leave us a rating on iTunes and support the show. If partnering with BiggerPockets interests you, reach out via our contact details provided. Keep aiming for those investment goals—unlike fair-weather trends, your property portfolio won’t curve with the seasons!
