BiggerPockets Money Podcast

Episode: From Making $28,000/Year to FI in 5 YEARS

Released: October 31, 2025 Guests: Mindy Jensen & Scott Trench (hosts), Deandra McDonald (guest)

Episode Overview

This episode features Deandra McDonald, who went from scraping by on $28,000/year with four part-time jobs to achieving financial independence (FI) and "work optional" status in just five years. The hosts, Mindy and Scott, delve deep with Deandra on her journey—emphasizing actionable steps, mindset shifts, and practical real estate strategies that remain open to anyone willing to put in the work today. The central theme: you can start building wealth and achieve FI, even from modest beginnings, by taking consistent, deliberate action—especially leveraging house hacking.

Key Topics & Discussion Points

1. Deandra’s Challenging Starting Point

• Graduated from University of Virginia with a Chemistry degree (~2013)
  • Expected a good job and financial security
  • Reality: $20,000 in student loans, couldn’t find a full-time job, relied on multiple part-time jobs to stay afloat
  • Emotional toll: “It felt like there was this massive timer over my life that was just counting down until that December 1st date when the first student loan payment was due.” (04:00, Deandra)
• First "big" job: laboratory tech at $28,000/year
  • Felt proud but soon realized it still wasn’t enough to get ahead

2. The Financial Wake-Up Call (Rent Increase)

• Initial optimism with first apartment, until she receives a rent increase notification
  • “What has changed that I now need to come off another 25, 50 dollars a month when I already don’t have Internet and I already don’t have data…?” (08:54, Deandra)
• Rent increase was the trigger for exploring investing and homeownership
  • Sought a mortgage, was denied due to inconsistent income, poor credit, and debt (15:05)
    • Instead of giving up, diligently worked on credit and savings

3. Breaking Into Real Estate (First House Hack)

• Saving, frugality, and discipline
  • Cut all unnecessary expenses; lived below means
  • Focused on saving 3% for a down payment on a cheap property
• First property ($85,000 townhouse in Charlottesville, VA with a roommate)
  • Hard work paid off: “I went from my $725 rent that was going to go up, to a $525 mortgage, and I got a roommate. So with one purchase...I don’t have to pay anything now in order to live.” (18:31)
  • “House hacking” before it was trendy (19:01)
  • Key insight: Action, not circumstances, moves the needle—Deandra made choices most avoid

4. Leveraging Each Move to Accelerate Wealth

• After stabilizing living costs, shifted focus to increasing income and scaling investments
  • Became a teacher (pay jump from $28k to ~$50k, 21:04)
  • Maintained frugal living, funneled all raises and rental profits directly into savings and new investments
  • “All of that went into investments. So anything past the house, when the house did start to make a little bit more money, because I did eventually get a third roommate…” (21:11)
• Repeated house hacking:
  • “Every year I just house hacked again. I just found somewhere else to buy. I got to the point where I almost wasn’t even unpacking.” (22:42)

5. Systematized House Hacking: Team Approach

• Worked with now-husband to maximize leveraging:
  • Each bought a property; coordinated purchases for maximum advantage (24:55)
  • Used marriage milestone and strategic timing to acquire more doors
• Scaling up: learning about multi-family financing, understanding bank/lender approaches (25:55–27:42)

6. Moving Into Multifamily & Creative Financing

• Outgrew single-family house hacking. Moved into small multifamily and creative deals:
  • Purchased a duplex, then condos through seller financing (with a 3-year balloon; 33:14)
  • Leveraged properties as Airbnbs for outsized cash flow
    • “These were all Airbnbs...making a lot of money, but I don’t have any time...very stressed out...that’s where I get introduced to larger multifamilies.” (33:16–34:11)
• Transition to 10-unit "motel" (micro-apartments), opportunity via off-market deal
  • “It was listed for $190,000...when I ran the numbers, I was like, this makes about what my Airbnbs make without the daily work.” (35:24)
    • Negotiated down to $150,000 plus $25,000 in concessions (39:19)

7. Lifestyle, Mindset, and Financial Independence

• Growth: From one struggling house hack to ~8 buildings and 50–55 units (45:47)
  • “I like to say work optional...if I stopped this, I could still live the life I want to live.” (46:16)
  • "If I could do 50 hard years, I can do five hard years." (30:44)
• Low expenses, high savings rate, and intentionality allowed for rapid FI
  • “I have no interest right now in buying another 30 unit right now. I just want to pay off debt and keep living.” (50:38)

Notable Quotes & Memorable Moments

• On taking ownership:
  • “One of the reasons that hard work didn’t scare me is because I was already miserable...This hard had one end, and that end looked terrible. Where this other hard...had an out.” (29:53, Deandra)
• On starting without privilege:
  • “Most people making $28,000 don’t even think about investing. And you’re like, I’m gonna anyway...all the people who are yelling at the radio right now, yeah, but they’re never going to do it. Deandra didn’t have a yeah, but. She’s like, I’m going to do this. And she did.” (52:02, Mindy)
• On scaling up quickly:
  • “It took me 18 months originally to save like three grand...But...the property appreciated. I went to pull a HELOC...I got a HELOC of $50,000. I could not have saved my way into [that], especially as a lower earner.” (28:15, Deandra)
• On modern house hacking:
  • “House hacking also works now, in 2025...My mortgage is like $800 for my six bedroom brick colonial and...it’s $900. So house hacking is not just a situation where...that was great in 2015. I did it in 2025, with 2025 rates.” (53:20, Deandra)

Timestamps for Important Segments

| Timestamp | Segment | |-----------|---------| | 01:55 | Deandra’s post-college struggles & first jobs | | 07:29 | Realizing limited options with $28k/year income | | 12:36 | Timeline: first job, first apartment, first rent increase | | 15:00 | First denied mortgage and “wake-up call” from a loan officer | | 18:30 | First successful house hack, living for "free" | | 19:22 | Next phase: income plateau, planning ahead | | 21:04 | Use of teaching for a salary jump | | 23:20 | Annual house hacking, maximizing the model | | 24:41 | Owner-occupant mortgage rules/buying strategy | | 32:55 | Seller-financed condos & Airbnb pivot | | 35:20 | “Larger multifamily”—purchasing a motel/10-unit complex | | 45:47 | Portfolio update: 7–8 properties, 50–55 units | | 46:16 | Work-optional life; current time spent on real estate | | 50:38 | Shifting from debt-fuelled growth to debt freedom | | 53:20 | House hacking in 2025—still works! | | 56:53 | Mindset wrap-up: “no easy button,” do the work |

Practical Takeaways

• Start where you are, use what you have
  • Deandra began with low income, student debt, and no investing background
• Frugality and discipline turn small wins into big ones
  • House hacking: reduced expenses + roommate income = rapid capital accumulation
• Creative strategies unlock opportunities
  • Seller financing, leveraging Airbnbs, off-market deals, etc.
• FI is possible in years, not decades
  • “If I was going to do 50 years of this, I can definitely do five years of this over here...” (30:44, Deandra)
• Today’s market is still open to beginners
  • “House hacking also works now, in 2025...” (53:20, Deandra)
• MINDSET is everything
  • Action over excuses; leverage discomfort as fuel for growth

Where to Find Deandra & Her Book

• Instagram/TikTok/YouTube: Deandra McDonald
• Website: deandramcdonald.com
• Book: The Multifamily Advantage: Breaking Free from the Single-Family Trap to Scale into Early Retirement (Available for pre-order on Amazon and her website; releases December 1st)

“You can hear about me. This is how you do it. This is how you analyze the properties. This is how you, you decide if you’re in a maintenance phase like I’m in right now or if you’re in a scaling phase.” (54:26, Deandra)

Final Thoughts

• Financial independence is open to anyone willing to take proactive, persistent steps—even from the lowest rungs.
• Eliminating housing cost is the “cheat code” for rapid wealth-building, especially for middle/lower earners.
• Today’s obstacles are surmountable; creative thinking and discipline are timeless tools.
• Deandra’s story is not just inspiration—it’s a blueprint.