On today’s episode, Jesse Dickens and Ruben Greth square off to decide which rental investment model is the best - build-to-rent single family homes or mid-size multifamily complexes.
Fighting out of Denver, Colorado, we have Jesse Dickens. With over 10 years of experience in healthcare, Jesse made the transition to real estate investing through multifamily properties. He currently focuses on small to mid-sized value-add multifamily deals in Colorado and Arizona through his firm Wealthcare Capital Partners.
His opponent,Ruben Greth, comes to us out of Phoenix, Arizona, and is a developer specializing in build-to-rent (BTR) housing. Ruben is currently developing several build-to-rent subdivisions in high-growth Southeast markets. He also hosts the Capital Raisers Show podcast.
Here are some power takeaways from today’s conversation:
[01:42] - Introduction of Ruben and Jesse
[04:08] - Ruben and Jesse’s beginnings in real estate investing
[11:43] - Small to mid-sized multifamily vs. build-to-rent housing
[26:04] - The risk and reward differences between the two, for investors
[28:29] - ROI profiles across the investments
[36:52] - What forcing appreciation looks like in BTR
[40:01] - The pros and cons of each model
[50:05] - Targeting opportunity zones
[1:02:34] - Who’s today’s winner?
Episode Highlights:
[11:43] Mid-Sized Multifamily Value-Add Properties vs. Built-to-Rent Development
Jesse discussed his approach to small to mid-sized multifamily value-add properties. He looks for underperforming assets that can be improved through renovations, better management, and driving rents higher. This allows him to increase the net operating income and property value.
Ruben then explained his build-to-rent model. He partners with experienced developers and general contractors to acquire land, obtain entitlements, and construct entire subdivisions of single-family rental homes. Ruben discussed raising capital in phases - first for infrastructure, then vertical development. Build-to-rent aims to provide the home experience to renters while cash flows for investors.
Both guests also touched on financing. Jesse emphasized flexibility and avoiding variable rate debt. Ruben noted being able to force appreciation at each stage of the build-to-rent process through incremental value creation as infrastructure and amenities are added.
[40:01] The Pros and Cons
For small multifamily (Jesse's model)
For build-to-rent (Ruben's model)
[1:02:34] Today’s Winner: Ruben’s Build-to-Rent
Resources Mentioned:
Jesse Dickens:
Ruben Greth:
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