Why On-Market Investing?
While many investors chase off-market deals, 95% of all real estate transactions happen on-market through the MLS, Zillow, and other public listing platforms. On-market properties offer distinct advantages:
More Inventory
Access thousands more properties than off-market channels. More opportunities mean better deal selection.
Market Transparency
Public comps, pricing history, and property data help you make informed decisions with confidence.
Faster Deals
No waiting for wholesaler negotiations. See it, analyze it, make an offer immediately.
Lower Acquisition Costs
No wholesale fees or finder commissions. Just your offer and standard closing costs.
The On-Market Advantage: With the right tools and strategies, on-market investing offers better opportunities, more transparency, and faster execution than chasing elusive off-market deals. The key is speed, analysis, and systematic execution—exactly what OnMarket CRM provides.
Strategy 1: Fix-and-Flip
Overview: Buy Low, Fix, Sell High
Fix-and-flip involves purchasing distressed or undervalued properties, renovating them, and selling for a profit. This is an active investing strategy ideal for investors who want quick returns and don't mind hands-on work.
How It Works
- Find undervalued properties on Zillow/MLS that need cosmetic or moderate repairs
- Analyze using the 70% Rule: Offer = (ARV × 0.70) - Repair Costs
- Purchase the property with cash or hard money loan
- Complete renovations in 30-60 days (cosmetic updates, kitchens, baths)
- List and sell at market value for profit
Finding Fix-and-Flip Deals on MLS
Key Search Criteria:
- Properties listed below market value per square foot
- Days on market: 30+ (motivated sellers)
- Property description mentions: "needs work", "TLC", "handyman special", "investor opportunity"
- Recent price reductions (5%+ drop)
- Homes in desirable neighborhoods with dated finishes
- Estate sales, foreclosures, short sales
Pros & Cons
✅ Pros
- • Quick profits (3-6 months)
- • No landlord responsibilities
- • Learn market and renovation costs fast
- • Can scale with experience
❌ Cons
- • Active income (taxed higher)
- • Requires renovation knowledge
- • Market timing risk
- • Holding costs eat into profit
Strategy 2: Buy-and-Hold Rentals
Overview: Build Passive Income & Wealth
Buy-and-hold rental investing involves purchasing properties and renting them out for long-term cash flow and appreciation. This is a passive investing strategy focused on building wealth over time.
How It Works
- Find cash-flowing properties in strong rental markets
- Apply the 1% Rule: Monthly rent should be ≥ 1% of purchase price
- Purchase with financing (conventional mortgage, 20-25% down)
- Find and screen tenants or hire property management
- Collect rent monthly and build equity through appreciation and mortgage paydown
Finding Rental Properties on MLS
Key Search Criteria:
- Price range that hits 1% rule based on local rents
- Multi-family properties (2-4 units for better cash flow)
- Areas with strong rental demand (near universities, employment centers)
- Properties with existing tenants (instant cash flow)
- Neighborhoods with good schools and low crime
- Cap rate > 8% minimum
Income Sources
Monthly Cash Flow
Rent collected minus all expenses (mortgage, taxes, insurance, maintenance, vacancy, management)
Target: $200-500/unit/month
Appreciation & Equity
Property value increases over time while tenants pay down your mortgage
Historical average: 3-4% annually
Strategy 3: BRRRR Method
Overview: Infinite Returns Through Refinancing
BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. This strategy combines fix-and-flip with buy-and-hold to build a rental portfolio while recycling your capital.
The BRRRR Process
Buy
Purchase undervalued property below market value (similar to fix-and-flip criteria)
Use cash or hard money. Target 70% of ARV or better.
Rehab
Renovate the property to increase value and make it rent-ready
Focus on improvements that add value and attract quality tenants.
Rent
Place high-quality tenants and establish cash flow
Wait 6 months+ for refinancing (seasoning period required by lenders).
Refinance
Get a new mortgage based on the higher after-repair value (ARV)
Pull out 70-80% of ARV. Ideally, recover 100%+ of invested capital.
Repeat
Use refinanced capital to acquire the next BRRRR property
Scale your portfolio without additional capital requirements.
💡 BRRRR Success Factor
The key to BRRRR is buying at a discount AND adding value through renovations. If you can purchase at 70% of ARV and do $40K in renovations that add $60K in value, you can potentially pull out 100%+ of your invested capital while keeping a cash-flowing rental.
Strategy 4: Turnkey Rentals
Overview: Ready-to-Rent Properties
Turnkey rentals are move-in ready properties that require minimal work. Perfect for investors who want passive income without renovation hassles or those investing out-of-state.
Ideal For:
- Busy professionals who lack time for renovations
- Out-of-state investors unfamiliar with local contractors
- Investors seeking truly passive income
- Those with capital but limited renovation experience
Finding Turnkey Rentals
Search for properties that are:
- Recently renovated or updated
- Currently occupied by tenants with lease in place
- Marketed as "investor-ready" or "turnkey"
- In good condition per inspection reports
- Managed by professional property management companies
Strategy 5: House Hacking
Overview: Live for Free & Build Wealth
House hacking means living in one unit of a multi-family property while renting out the others, or renting out spare bedrooms in a single-family home. Your tenants cover your mortgage.
Two House Hacking Approaches:
Multi-Family
Buy a 2-4 unit property, live in one unit, rent the others
Benefit: Separate living spaces, easier to scale
Single-Family with Roommates
Buy a 3-4 bedroom house, rent out spare bedrooms
Benefit: Lower purchase price, more location options
Why House Hacking Works
- Qualify for owner-occupied financing (3.5% down with FHA)
- Lower interest rates than investment properties
- Live for free while building equity
- Learn landlording with minimal risk
- Can repeat annually to build portfolio fast
Strategy 6: Short-Term Rentals (Airbnb/VRBO)
Overview: Maximize Income Through Short Stays
Short-term rentals (STRs) involve renting properties nightly or weekly through platforms like Airbnb and VRBO. Higher income potential but more management intensive.
Income Potential
Short-term rentals typically generate 2-3x more income than traditional long-term rentals in the same market. A property that would rent for $2,000/month long-term might generate $4,000-6,000/month as an STR.
Finding STR Properties
Key Criteria:
- Tourist destinations, beach towns, mountain areas
- Near major attractions, events, or business districts
- Areas where STRs are legally permitted (check local regulations)
- Properties with unique features or charm
- Good reviews of other Airbnbs in the area
- Easy self-check-in capability
⚠️ Important Considerations
- • Check local STR regulations (some cities have bans or strict rules)
- • Higher management intensity (cleaning, guest communication, maintenance)
- • Seasonal income fluctuations
- • Need furnishings and ongoing supplies
Choosing Your Strategy
The best strategy depends on your goals, capital, time availability, and risk tolerance. Here's a comparison:
| Strategy | Best For | Capital Needed | Time Commitment | ROI |
|---|---|---|---|---|
| Fix-and-Flip | Quick profits, active investors | $50K-$150K | High (20-40 hrs/wk) | 15-25% |
| Buy-and-Hold | Passive income, long-term wealth | $30K-$75K | Low (5-10 hrs/month) | 8-12% |
| BRRRR | Portfolio building, capital recycling | $50K-$100K | Medium (15-25 hrs/wk) | Infinite |
| Turnkey | Busy professionals, out-of-state | $40K-$80K | Very Low (2-5 hrs/month) | 6-10% |
| House Hacking | First-time investors, low capital | $10K-$30K | Medium (10-15 hrs/month) | 20-50%+ |
| Short-Term Rentals | High income, tourist areas | $40K-$100K | High (15-30 hrs/month) | 15-30% |
💡 Pro Tip: Start with One, Scale to Many
Most successful investors master one strategy before expanding. Start with the strategy that fits your current situation, then evolve. Many investors begin with house hacking, transition to BRRRR, and eventually build a portfolio of buy-and-hold rentals while occasionally flipping properties.
How OnMarket CRM Supports All Strategies
One Platform, Every Strategy
Zillow/MLS Integration
Automatically import on-market properties for any strategy. Filter by investment criteria specific to your approach.
Multi-Strategy Calculators
Built-in calculators for fix-and-flip, rental analysis, BRRRR, cap rate, cash-on-cash returns, and more.
Advanced Filtering
Create saved searches for each strategy. Track properties across multiple investing approaches simultaneously.
Portfolio Management
Track your entire portfolio regardless of strategy. See which properties are flips, which are rentals, which are BRRRR candidates.
Deal Pipeline
Visualize your pipeline from sourcing through closing. Different workflows for each strategy type.
Performance Tracking
Monitor ROI, cash flow, and equity across all properties. Compare strategy performance to optimize your approach.
Frequently Asked Questions
Can I combine multiple strategies?
Absolutely! Many investors run several strategies simultaneously. You might flip 2-3 properties per year while building a rental portfolio through BRRRR. Diversifying across strategies reduces risk and maximizes opportunities.
Which strategy is best for beginners?
House hacking is ideal for beginners—low down payment, owner-occupied financing, live-and-learn experience. Alternatively, a turnkey rental offers passive income with minimal complexity. Avoid fix-and-flip as your first deal unless you have construction experience.
How much capital do I need to start?
House hacking: $10K-$30K (FHA 3.5% down). Buy-and-hold: $30K-$75K (20-25% down). Fix-and-flip or BRRRR: $50K-$150K. You can also partner with others or use creative financing to reduce capital requirements.
Are on-market deals really profitable?
Yes! While off-market deals get attention, 95% of transactions happen on-market. With the right tools, analysis, and speed, on-market properties offer excellent returns. The key is systematic sourcing and rapid response—exactly what OnMarket CRM provides.
How do I know which markets to invest in?
Look for markets with: growing population, job growth, diverse economy, landlord-friendly laws, and strong rental demand. Use OnMarket CRM to track properties across multiple markets and identify where the best deals appear.
Should I hire a property manager?
For out-of-state investments or if you value time over cost, yes. Property management typically costs 8-10% of rent. For local investments where you want to maximize cash flow, self-management works but requires time commitment.
How long until I see returns?
Fix-and-flip: 3-6 months. BRRRR: 6-12 months to complete cycle. Buy-and-hold: Immediate monthly cash flow, long-term appreciation. House hacking: Immediate housing cost reduction. Short-term rentals: Immediate monthly income.
Can I use OnMarket CRM for all these strategies?
Yes! OnMarket CRM is designed to support all on-market investing strategies. Whether you're flipping, renting, or BRRRRing, our platform helps you source, analyze, and manage deals efficiently.
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