Podcast Summary

BiggerPockets Real Estate Podcast: "Why This Expert Investor Owns Only ONE Rental Property"

Host: Dave Meyer (BiggerPockets)
Guest: Mike Baum
Aired: November 24, 2025 (Replay from September 2024)

Episode Overview

This episode features Mike Baum, a seasoned tech professional turned real estate investor, who shares why—after a forced early retirement and a significant lifestyle change—he purposefully chose to own and manage just one short-term rental property in Idaho. Mike’s story dispels the myth that financial freedom through real estate requires a large portfolio, and instead highlights the importance of strategic, intentional investing tailored to life’s circumstances.

Key Discussion Points & Insights

1. Mike's Background and Health-Driven Pivot

• Career at Intel: Mike spent 19 years at Intel in engineering and technical marketing, working long hours under intense stress.
• Life-Changing Event: Suffered a neurological disability in 2011, moving to long-term disability after his health rapidly deteriorated ([03:14]).
  • Quote: "One morning I woke up and I couldn't see... The stress of the work had put me over the edge." — Mike ([03:45])

2. Financial Implications of Disability

• Lost primary income; went from "upper middle class to middle, middle class."
• Relied on Intel’s disability package and Social Security, but could no longer contribute regularly to retirement ([04:19]).

3. Path to Real Estate Investing

• Prior experience with rental properties, but the pivotal decision was to buy a vacation home on Lake Coeur D'Alene, Idaho.
• Initial plan: Strictly for family use, but realized it would be empty most of the time due to distance and logistics ([05:14]).
• Discovered the potential in short-term rentals through BiggerPockets forums ([07:47]).
  • Quote: "If it wasn't for BiggerPockets, I don't think I would have done it." — Mike ([08:04])

4. Transitioning to Short-Term Rental Management

• Navigated the significant learning curve by leveraging his process-oriented engineering background ([12:47]).
• Self-Management: Mike is a strong advocate for direct, personal management and communication with guests, refusing to automate guest interactions ([13:35]).
  • Quote: “I’m a huge believer in personal communication with the guests. I don’t rely on automated communication… I give them my personal cell phone number.” — Mike ([13:37])
• Only a handful of guest-related calls in seven years, credited to stringent guest vetting and home maintenance ([14:51]).
• Early setbacks included property prep and learning from mistakes (e.g., choosing the right sheets), with the first year running at a loss ([19:21]).

5. Cautious Approach to Scaling & FOMO Immunity

• Despite success, Mike never scaled beyond one property:
  • Market factors: Explosive price appreciation and rising interest rates in Idaho post-COVID made expansion less feasible ([21:36]).
  • Missed several opportunities due to market timing or sellers withdrawing listings ([22:02]).
• Now in a "holding pattern," focusing on life balance and planning for his wife’s upcoming retirement ([23:40]).
  • Quote: "We started kind of late in life in this particular game. So, you know, had we known more earlier, I think we would have done better." — Mike ([23:54])

6. Strategic Advice for New Investors

• Mike strongly recommends that young investors skip short-term rentals and instead “house hack” with duplexes, triplexes, or fourplexes using FHA or VA loans ([30:31]).
  • Quote: “If you’re young, you don’t have kids... buy something like that, live in one and you have three renters… build the rest of your financial foundation from there.” — Mike ([31:03])

7. Mindset: Patience Over FOMO

• Discusses his immunity to Fear Of Missing Out (FOMO), especially after experiencing both market booms and disappointments ([27:45]).
• Attributes patience and caution to age, life experience, and the need to protect his family's future, rather than chasing every “shiny object” deal ([28:49]).
  • Quote: “If you get mad and try to jump on every single deal… it’s going to bite you.” — Mike ([28:28])

8. Market Outlook and Community Role

• Anticipates future opportunities as some over-leveraged short-term rental owners sell off at losses due to high interest rates ([33:06]).
• Stresses the value of active participation in the BiggerPockets forums, both for learning and for giving back ([18:08]).
  • Notable Moment: Mike praised as one of BiggerPockets’ most prolific forum contributors, with over 10,000 hours helping fellow investors ([01:00]).

Notable Quotes & Timestamps

• "You don't need a huge, massive portfolio to make a huge impact on your life." — Dave Meyer ([00:46])
• "If it wasn't for BiggerPockets, I don't think I would have done [short-term rental]." — Mike Baum ([08:04])
• "I'm a huge believer in personal communication with the guests... I give them my personal cell phone number." — Mike ([13:37])
• "If you fail to plan, plan to fail... and being more technical minded allows me to get a better understanding of the way finance is supposed to work." — Mike ([16:41])
• "It’s not that we don’t want to expand, but now we’re getting to the point where my wife’s going to retire in a couple of years... Had we known more earlier, I think we would have done better." — Mike ([23:49])
• "I’m not really much of a FOMO guy... It just wasn’t meant to be. If you get mad and try to jump on every single deal that comes along, it’s going to bite you." — Mike ([27:45] and [28:28])
• “My advice to every young investor wanting to get started is to not do short-term rentals... Buy a duplex, triplex, or fourplex and build your base.” — Mike ([30:29])

Important Segments (Timestamps)

• [03:14] – Mike’s health crisis and forced early retirement
• [05:14] – Transition to short-term rental on Lake Coeur D’Alene
• [12:47] – Applying engineering mindset to rental management
• [14:51] – The importance of guest vetting and personalized service
• [19:21] – Early struggles and learning curve in short-term rental
• [21:36] – Reasoning for not scaling his portfolio
• [27:45] – Discussion on patience and avoiding FOMO
• [30:29] – Advice for young/new investors: house hacking vs short-term rentals
• [33:06] – Current market outlook and advice for investors

Final Thoughts

This episode serves as a compelling case study in intentional, disciplined investing, emphasizing that big results don’t require big portfolios. Mike’s journey—from crisis to contentment—offers refreshing counterpoints to the growth-at-all-costs mindset, championing thoughtful risk-taking, deep self-education, and the long-view. His advice for young investors to build a solid base before pursuing riskier strategies is particularly valuable, as is his reminder that community and mentorship (such as on BiggerPockets) are keys to long-term success.