As interest rates climb higher and many everyday buyers step back from the housing market, real estate investors are encountering a landscape of opportunity that has not been available in years. Industry experts suggest that current conditions are opening doors to unprecedented negotiations, including double-digit property discounts, low-range interest rates, and flexible down payment options.
Zach LeMaster, CEO of Rent to Retirement and a veteran real estate investor, recently sat down on the BiggerPockets Podcast with host Dave Meyer to break down the exact strategies he is using to secure 10% to 15% off rental properties. While many market participants are waiting on the sidelines for interest rates to drop, seasoned investors are leveraging builder inventory pressures, creative financing structures, and targeted tax strategies to build lucrative portfolios.
From Air Force Optometrist to Turnkey Real Estate Leader
LeMaster’s journey into real estate began nearly 15 years ago during his time as an Air Force optometrist. Commissioned through a military scholarship, LeMaster initially had no background in traditional finance, stocks, or corporate investing. Drawn to real estate simply because it was a tangible asset he could understand, he utilized a VA loan—which allowed for zero money down and no private mortgage insurance—to purchase his first duplex.
Living in one half and renting out the other, LeMaster house-hacked his way into building an early portfolio while stationed in North Dakota. He continued buying properties locally year after year, even while moving across the country for military assignments. Eventually, he encountered a common hurdle for active investors: running out of local capital and reaching a ceiling with local market returns.
Seeking higher yields, LeMaster and his wife ventured into out-of-state investing, starting with low-income housing and two-flats in the Southside of Chicago around 2013. The initial foray proved difficult, marked by constant maintenance issues, complex housing authority regulations, and unexpected expenses that LeMaster describes as "death by a thousand paper cuts." Rather than abandoning the strategy, LeMaster treated the losses as a masterclass in portfolio management. He refined his systems, learned how to identify markets aligned with specific financial goals, and built reliable out-of-state teams.
The success of these systematic out-of-state investments ultimately allowed LeMaster and his wife to replace their active incomes as optometrists, leave the military, and launch Rent to Retirement, which has grown into one of the nation’s leading turnkey real estate companies.
The Shift Toward Out-of-State Investing and Market Strategy
During their discussion, LeMaster and Meyer reflected on the psychological barriers that keep many investors anchored to their local markets. Both hosts noted that while local investing feels comfortable, it often holds investors back if the local geography is overpriced, heavily taxed, or over-regulated.
LeMaster emphasizes that effective out-of-state investing requires a clear understanding of long-term goals, risk tolerance, and personal capabilities. Investors must audit their resources—specifically time, money, and skill—before choosing a strategy. For busy professionals who lack the time or inclination to manage contractors and fix plumbing, outsourcing property management and working with established turnkey partners is often far more efficient than attempting to handle every operational detail locally.
Furthermore, LeMaster cautions newer investors against falling into the trap of chasing unicorn deals or trying to execute multiple complex strategies simultaneously. Sticking to the fundamentals of residential real estate—such as single-family homes and small multifamily properties in growth markets—remains the most reliable path to long-term wealth creation. Housing demand remains strong across the United States, and residential assets provide a sustainable foundation when properly underwritten.
Capitalizing on Builder Inventories and Creative Financing
Addressing the current macroeconomic environment, LeMaster points out that today’s elevated interest rates have actually created a buyer’s market for those willing to hunt for deals. Unlike the low-interest-rate frenzy of past years, when nearly any property generated positive cash flow, today’s market rewards true underwriting skill and aggressive deal negotiation.
One of the most significant opportunities in the current market lies in new construction. National and local builders operating at scale face immense inventory pressures and cannot afford to let properties sit indefinitely on their balance sheets. Because institutional buyers like REITs and large private equity firms have faced increased regulatory scrutiny and pulled back on massive portfolio acquisitions, individual investors now have a window of opportunity to negotiate directly with builders.
LeMaster notes that baseline discounts of 10% are readily available when working with established builders in growth corridors across the Southeast, including markets in Alabama, Georgia, the Carolinas, Florida, and Texas. When purchasing packages of homes through turnkey channels, those discounts can stretch to 13% or 15%. These price reductions, combined with builder-paid rate buydowns, can allow investors to secure financing in the 3% to 4% range on 30-year fixed loans, drastically shifting the math on monthly cash flow and return on investment.
In addition to price negotiations, LeMaster highlights the power of creative financing and aggressive tax planning. Utilizing DSCR loans, adjustable-rate mortgages with favorable terms, and local credit union financing options with low down payments allows investors to preserve capital. On the tax front, leveraging cost segregation studies to accelerate depreciation—coupled with short-term rental strategies and 1031 exchanges—enables investors to defer taxes and protect active income, supercharging portfolio growth over multi-year horizons.
As the market continues to evolve, LeMaster underscores the importance of a long-term mindset. Investors who maintain the discipline to acquire quality assets consistently across all market cycles—treating real estate as a multi-decade journey rather than a short-term trade—are positioning themselves to reap the full rewards of the housing market’s long-term trajectory.