BiggerPockets Real Estate Podcast: "I Built a $12K/Month Rental Portfolio While Working 9-5"

Release Date: September 8, 2025
Host: Dave Meyer
Guest: Pratik Shah

Episode Overview

In this episode, host Dave Meyer sits down with Pratik Shah, a New Jersey-based pharmacist who, while keeping his full-time W2 job, built a net cash flow of $12,000/month through rental properties across three markets. Pratik walks listeners through his practical, repeatable formula for building a rental portfolio—crucially, without quitting his day job. The episode is rich in real-world stories: from buying his first property off a networking connection, to handling a catastrophic fire, to scaling out-of-state, and adjusting strategy amid shifting markets.

Key Discussion Points & Insights

1. Pratik's Real Estate Origin Story

• Accidental Start through Networking:
  • Inspired by a fellow New Jersey investor he met on a boat in Capri, Italy (01:40)
  • Purchased the investor’s property, leveraging mentorship to ease the first deal jitters
• "The first goal is just to learn, not to hit a home run." – Dave Meyer (03:34)

2. First Deals: Section 8 Tenants and Early Lessons

• Property 1 and 2: Multifamily units with inherited Section 8 tenants in a rough area of New Jersey (02:11)
• Tenant Challenges:
  • Managing inherited tenants, specifically with property upkeep and township code violations (05:07)
  • Decided to sell a problematic property—emphasizing there’s no shame in moving on from a bad deal

    "If there's a deal that's just not working for you, get rid of it before you burn out." – Dave Meyer (05:51)

3. The Fire: From Buy-and-Hold to Forced Flipper

• Unexpected Disaster:
  • Scheduled to sell a property, but a fire destroyed it days before closing (06:33)
  • Had to learn about insurance claims, contractor vetting, and full rehabs (11:10)
• Silver Lining:
  • Ended up selling for six figures more after the post-fire rehab—largely due to the pandemic market upswing (12:45)

    "Financially, yes, it worked out... but I would wish this upon nobody." – Pratik Shah (12:57)

• Growth Mindset:
  • Embraced the forced learning experience—tenant management, construction, dealing with insurance (13:19)

4. Expanding to Out-of-State Markets

• Lehigh Valley, PA:
  • Entered through local networking events (Lehigh Valley an hour from home) (14:09)
  • Continued the approach of buying from fellow investors, inheriting (this time good) tenants
  • Grown to 12 units in the area (15:40)
• Tenant Screening Strategy:
  • Prioritizes personal interviews over just background/credit checks; willing to give people a second chance if they show genuine promise (17:00)

    "Some of it's just through conversation... I was sold on the genuineness..." (18:10)

  • Story of a tenant with a criminal record who became "one of my best tenants" after a personal conversation (18:40)
• Market Selection:
  • Looked at other cash-flow markets (Indianapolis, Cleveland) but preferred proximity for initial expansion (16:01)
  • Placed high value on self-management and personal tenant placement

5. Long-Distance Investing: Fayetteville, NC and Beyond

• Fayetteville, NC:
  • Entered via a work friend who lived nearby; has never visited the market (19:55, 25:04)
  • Built trust by creating a "treasure map" of good/bad neighborhoods with his agent via Google Maps and phone calls (27:47)

    "I had a Google map printed out... circled neighborhoods with my agent on the phone." – Pratik Shah (27:48)

  • Emphasized the critical importance of an honest, knowledgeable agent
• Risk Management:
  • Overcame anxiety by trialing small deals, relying on established local teams, and doing deep research (26:39)
• Market Differences:
  • Noted that appreciation in Fayetteville has slowed, while rent growth hasn’t kept pace with rising prices (29:35)

    "Rents aren't keeping up as much as appreciation... that's analysis I need to do." (29:35)

6. Adapting to a Tight Market: Pivot to Flipping and Further Diversification

• Reason for Diversifying:
  • As more investors entered his markets, returns diminished (25:46); saw benefit in increasing deal funnel and cash flows via multiple strategies
• Flipping in Pittsburgh:
  • Started doing cosmetic flips for faster returns (31:09), drawn to the project management aspect, and honed skills from prior rehab experience
  • Enjoys “running numbers” and the hands-on process—treats it as project management after contractors are lined up (34:29)

    "Once you find a deal that pencils... the hardest step is really figuring out what color combinations and paint palettes you want." (32:59)

• Time Management:
  • Handles deals after work hours, delegates on-the-ground tasks, and leans on spreadsheets and remote project management (34:29)

7. Maintaining a W2 Job While Scaling

• Philosophy:
  • Keeps his day job “because I enjoy it”—real estate remains a side passion for wealth building, not a means to an early retirement (26:16, 36:22)

    "I just love crunching numbers, and when it makes sense, why not pull the trigger?" (25:54)

• Current Portfolio:
  • Just under 20 units across three markets (PA, NC, Pittsburgh) bringing in $12k/month net cash flow (35:10)
• Looking Ahead:
  • No formal “door count” goal; informal target of $25k/month in cash flow—main objective is to “keep growing and have fun” (36:22)
  • Interested in adding private lending to his toolbox (35:41)

Notable Quotes & Memorable Moments

• On Getting Started and Learning:

  "The number one goal for your first deal should just be to learn. It's not to hit a home run." – Dave Meyer (03:34)

• On Market Pivots:

  "If there's a deal that's just not working for you, get rid of it and go do something else. Before you burn out or lose your money on a bad investment." – Dave Meyer (05:51)

• On Surviving a Fire:

  "We were set to close... and on July 27th... I get a call late night... my house is on fire... That started my journey from just being a new investor to, essentially, a flipper." – Pratik Shah (06:33)

• On Out-of-State Investing:

  "I printed out a Google map of Fayetteville... and I got on the phone with [my agent] and we went to neighborhood to neighborhood... circled what's a good area, put X's where not to buy." – Pratik Shah (27:48)

• On Second Chances with Tenants:

  "Some of it's just through conversation... I was able to do it myself and physically see the person... I was sold on the sense of genuineness, and I rented it out to him. He's one of my best tenants." – Pratik Shah (18:10)

• On Work-Life-Real Estate Balance:

  "I have a W2 job that I love... At the end of the day I just want to keep growing. I want to keep having fun." – Pratik Shah (36:22)

Timestamps for Key Segments

• Pratik's introduction & first deal: 01:37 – 03:45
• Early tenant management woes: 04:53 – 05:38
• Decision to sell & fire disaster: 06:12 – 07:20
• Lessons from the fire & rehab: 10:48 – 13:19
• Networking into Lehigh Valley, PA: 14:09 – 15:40
• Thoughtful tenant screening: 17:00 – 19:13
• Entering Fayetteville, NC remotely: 19:55 – 20:44, 25:04 – 27:48
• Building systems for long-distance investing: 27:47 – 29:01
• Market analysis & adapting strategy: 29:35 – 31:09
• Pittsburgh flips & scaling workload: 31:09 – 35:00
• Portfolio overview & future directions: 35:10 – 37:02

Summary & Takeaways

Pratik Shah’s journey offers an accessible formula: keep your day job, network intentionally, buy conservatively, don’t fear pivoting or selling, vet tenants with care, systematize and diversify across markets, and above all, enjoy the learning process. His story demonstrates how setbacks (even disasters) can accelerate learning, and how investing can fit smoothly alongside other life and career ambitions. For investors hoping to build meaningful side income—without going “all in” or giving up professional security—Pratik’s approach is both practical and inspiring.

Listen to this episode anywhere you get your podcasts (YouTube, Apple, Spotify), and find more resources at biggerpockets.com.