BiggerPockets Real Estate Podcast

13 Rental Units with a “Rinse and Repeat” Investing Method

Mar 24, 2025

Mike Johnson, a savvy real estate investor from Chicago, shares his journey of scaling from zero to 13 rental units in just four years using a smart house hacking strategy. He discusses how he leveraged low-money-down loans to build a $3.4 million portfolio, while also sharing the ups and downs of property management—including dealing with squatters and difficult tenants. Mike emphasizes the importance of seeing your primary residence as an investment and offers tips on navigating challenges in the rental market for anyone looking to replicate his success.

38:14

Episode guests

Mike Johnson

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Episode notes

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Quick takeaways

The investor successfully scaled his portfolio from zero to 13 rental units in four years through strategic house hacking and leveraging low down payments.

Challenges with tenant management taught the investor the value of hiring a property management company for effective oversight and adaptation in real estate investing.

Deep dives

Investor Journey and First Steps

An investor shared his journey, starting from his initial $13,000 down payment on a duplex in 2021 to amassing a portfolio of 13 units in just four years. This rapid growth was made possible by house hacking, where he lived in one property while renting out the others. His approach exemplifies the potential for financial freedom through strategic real estate investments, particularly in favorable markets like Chicago. He emphasizes the importance of leveraging lower down payment options and making financially sound decisions to maximize cash flow and appreciation.

Intro

2min

Navigating Real Estate Investment Post-Pandemic

6min

Building Trust: Effective Tenant Management

7min

Challenges of Real Estate Investment

6min

Navigating Real Estate Challenges

7min

Navigating Tenant Challenges and Investment Strategies

12min

This investor built a multimillion-dollar real estate portfolio with low-money-down loans and little cash-to-close. Thanks to his smart “rinse and repeat” strategy, he’s quickly scaled from zero to 13 rental units in just four years, all while collecting thousands of dollars of cash flow a month. He would have never been able to get to this place if he hadn’t followed a strategy many investors are too scared to try.

Mike Johnson knew the best way to take bigger career risks was to have a backup plan. The ultimate passive income plan? Rental properties. But he didn’t want to put 20% to 25% down on each property he bought, so he started where many investors do—house hacking. Four years later, he’s continued his repeatable house hacking strategy, purchasing a new property every year, living in one unit, and renting out the others.

This has allowed Mike to build a portfolio worth $3.4 million in just four years while buying in B+ or A-class neighborhoods and taking home a healthy amount of cash flow. But he has dealt with his fair share of headaches—squatters, non-paying tenants, and a lot of purple paint. Mike still says investing has been a massive win for him, and you can repeat his same strategy!

In This Episode We Cover:

How to start investing in real estate with little money using the house hacking strategy

Why your primary residence IS an investment (and a phenomenal one at that)

The biggest mistake Mike made that led to him buying a property with a squatter in the unit

The new 5% down multifamily loan you can use to buy bigger, better, more expensive properties

The cash flow AND appreciation market Mike is bullish on (and keeps investing in)

When to self-manage vs. hire property management for your rentals

And So Much More!

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