Podcast Summary: BiggerPockets Real Estate Podcast

Episode: Why Keeping Your Job Makes You Richer (Quicker) in Real Estate
Date: December 10, 2025
Host: Dave Meyer
Guest: Paul Novak

Episode Overview

This episode dives into the often controversial topic of whether you need to quit your day job to quickly succeed in real estate investing—or if, in reality, keeping your traditional W2 employment can actually make you a faster, stronger investor. Host Dave Meyer interviews Paul Novak, a full-time customer satisfaction manager and successful real estate investor, about the overlooked benefits, trade-offs, and strategic advantages of staying employed while scaling a property portfolio. Together, they provide candid insights for aspiring and working investors alike.

Key Discussion Points and Insights

1. Challenging Real Estate Myths (00:00–00:16)

• Myth Busted: Quitting your job is not a prerequisite for real estate success.
• Dave’s View: “Keeping your W2 is maybe the secret to building a portfolio as fast as possible.” (A, 00:16)

2. Paul Novak’s Background and Real Estate Journey (01:39–03:44)

• Lives in Sheboygan, Wisconsin; customer satisfaction manager for 20 years.
• Started in FIRE (Financial Independence, Retire Early) by paying off debt, shifted to real estate during COVID for better cash flow.
• Current portfolio: six properties, eight doors (two multifamily duplexes, rest single-family).

3. Why Stay in a W2 Job? (04:00–04:56)

• Stability & Growth: W2 income provides financial stability and capital for scaling.
  • “You have to have money coming in. If we didn’t work our W2s, it would significantly stunt our abilities to grow or pay off these properties.” (C, 04:09)
• Still in “growth phase”—goal is $11k/month in cash flow; not living off rental income yet.

4. Active Real Estate Income Alternatives (06:12–08:01)

• Dave queries: Why not become an agent, flipper, or property manager for “active” real estate income?
• Paul’s perspective: Transitioning would involve a significant pay cut and learning curve, disrupting family stability, particularly with young kids at home.
  • “I’ve put in 20 years into this career… I don’t know if I want to take those two or three years to catch back up to where I’m already at.” (C, 06:33)

5. Personal Fulfillment vs. Income Security (08:01–10:24)

• Consider both enjoyment and earning potential in your career/investing mix.
• Factors: Age, dependence (family situation), willingness to accept risk.
• Defining “enough” and goal-posts are crucial for making these decisions.
  • "If you know what [enough] is, it’s easier to kind of make that decision." (C, 09:47)

6. Hidden Benefits of Keeping a W2 Job

A. Reliable Income and Lendability (15:21–17:16)

• Banks prefer W2 income for lending; “on paper, my income is so low [without W2], I’m really struggling to continue to scale…” (C, 15:33)
• Most investors use leverage, not all-cash acquisitions.

B. Transferable Workplace Skills (17:16–18:17)

• Skills from employment (project management, leadership, tough conversations, KPIs) directly translate to being an effective landlord and investor.

C. Cushion for Unexpected Expenses (18:17–19:54)

• Real-world cash flow isn’t linear—unexpected repairs can wipe out annual profits.
  • “These expenses hit you when they hit you.” (C, 18:34)
• Steady job income makes such setbacks an inconvenience rather than a crisis.

D. Quality of Asset & Tenant Care (22:25–26:05)

• Secure income allows for higher-quality repairs, upgrades, and tenant experience.
  • "The quality of tenants that I have and the amount of people that stay in my properties...is night and day different." (C, 22:25)
• Dave and Paul share stories of outspending on quality to ensure long-term retention and property health.

E. Long-Term Mindset and Flexibility (19:54–22:25)

• Security enables better, longer-term decision-making (e.g., allowing vacancy for renovations, not sweating short-term cash dips).

F. Lending Advantage (26:05–28:20)

• Conventional mortgage qualification is far easier with a W2, which is essential for scaling.

7. Downsides & Trade-Offs to Staying Employed (32:31–37:49)

• Time Constraints: W2s can limit flexibility to view deals or attend to urgent property matters (33:39).
  • “Not a lot of W2 jobs are going to let you leave midday to go do showings…” (C, 33:55)
• Deal Flow & Networking: Agents or full-time investors see more deals, have stronger networks (34:12–34:57).
  • “The best multifamily deals are probably at least being offered up first to, you know, bigger investors…” (C, 34:49)
• Lack of ‘Real Estate Professional’ Tax Status: Full-timers can leverage losses against active income—W2 employees can’t (35:19–36:37).
  • “Real estate professional tax status is incredible, and you cannot get it as a W2 employee.” (B, 35:20)

8. Final Advice and Mindset (37:49–38:26)

• Don’t rush to quit. Use a good W2 to build a stable base before any pivot.
  • “If you want to become involved in real estate, but you’ve got a good W2 gig, keep investing. Let that portfolio grow to where you have that stable base and then make the pivot.” (C, 37:49)
• Optimize for personal goals, life stage, and risk tolerance.

Notable Quotes & Memorable Moments

• "I believe it's not just possible to invest in real estate with a day job, but keeping your W2 is maybe the secret to building a portfolio as fast as possible."
  — Dave Meyer (A, 00:16)
• “You have to have money coming in...it really lowers the stress level for where we’re going.”
  — Paul Novak (C, 04:09)
• "If you're relying on that income too early in your investing career, that's where you can really get in trouble."
  — Dave Meyer (B, 21:49)
• "Transferable skills from work—project management, leadership—have really set me up to do a lot of those things."
  — Paul Novak (C, 17:06)
• "The quality of tenants that I have and the amount of people that stay in my properties versus—night and day difference."
  — Paul Novak (C, 22:25)
• "Real estate professional tax status is incredible, and you cannot get it as a W2 employee."
  — Dave Meyer (B, 35:20)
• "There's nothing that says you can't do it further down the line."
  — Paul Novak (C, 38:09)

Recommended Listening Timestamps

• Challenging the Quit-Your-Job Myth: 00:00–00:16
• Paul’s Background: 02:00–03:44
• Why Not Go Full-Time Real Estate?: 06:12–08:01
• Hidden Benefits of a W2: 15:21–26:05
• W2 Downsides & Trade-Offs: 32:31–37:49
• Paul’s Closing Advice: 37:49–38:26

Takeaways

Keeping a traditional job is not an obstacle to real estate investing success—in fact, it may be one of your biggest accelerants. The stability, lending power, skillset, and long-term mindset offered by W2 employment are powerful tools in your journey to financial freedom. Weigh the trade-offs for your personal situation, take your time, and let your investment decisions be guided by your goals—not by pressure to “go all in.”