Real Estate Rookie Episode Summary

Episode: "45 Rentals and $0 Debt: The Money Mindset Shift That Made Me Financially Free"

Hosts: Ashley Kehr & Tony J Robinson (BiggerPockets)

Guest: Liz Carroll

Release Date: December 1, 2025

Brief Overview

This episode focuses on the transformative journey of Liz Carroll, who with her husband built a portfolio of 45 rental properties—all completely debt-free. Liz shares how she overcame a lifelong belief that she was “bad with money”, shifted her mindset, and embraced intentional financial strategies. The conversation blends practical investing advice, mindset shifts, and strategic decisions about debt, asset management, and exit planning, offering a roadmap for rookie investors seeking financial freedom on their own terms.

Key Discussion Points & Insights

1. Liz’s Early “Money Story” and Mindset Shift

• Liz recounts how childhood events and family messages left her feeling “bad with money” ([01:06]).

• Her turning point came at age 30 after feeling overwhelmed by financial stress, despite holding a good job and having started investing ([02:38]):

  “I felt like I was on a treadmill that was on number five... I needed to have some relief.” – Liz ([02:38])

• She was inspired by reading Financial Peace by Dave Ramsey ([02:56]) and started intentional self-improvement.

2. Defining ‘Good with Money’

• Liz, Ashley, and Tony reflect on what it means to be “good with money” ([03:57]):
  • Having the ability to cover everyday expenses
  • Maintaining savings for short-term needs and emergencies
  • Investing for the future and creating financial security ([05:16])
• Ashley shares her own motivation:

  "I don't want to have to stress about [unexpected expenses]... that's what motivates me to be mindful about money." – Ashley ([06:06])

3. First Steps and Goal Setting

• Liz and her husband created a simple three-item plan ([07:34]):
  1. Live completely debt-free
  2. Pay for their children’s college
  3. Build enough passive real estate income to make work optional by age 50
• Every major financial and investing decision became guided by these "guardrails" ([08:19])

4. Liz’s First Real Estate Deal

• At age 22-23, Liz and her husband bought a $13,625 house in Spokane, WA, with owner-carry financing and $1,500 borrowed from her father ([11:21]).

  • They put $900 into the property and sold it after 18 months for $18,000 ([11:21]).

  “It was the cutest little house... this is one of the only houses that we've ever bought where the tenant actually stayed.” – Liz ([12:15])

• On reflecting if the risk was worth it without much discretionary cash:

  “Yes, I think it was the right move for us for sure. It was a little risky... but the actual risk was pretty low.” – Liz ([14:34])

5. Debt-Free Strategy: Why & How

• Initially followed Dave Ramsey’s personal finance advice, keeping personal debts at zero, but maintained mortgages on investment properties ([16:31]).
• Transitioned portfolio to being fully debt-free as they prepared to leave their W2 jobs, seeking "flexibility and security" ([16:34], [18:23]).
  • Emotional comfort weighed heavily in this decision, alongside the math.

  “We didn’t want to owe anyone anything... there’s so much more flexibility when you don’t have debt on the properties.” – Liz ([18:39])

• Fewer properties led to less management headache:

  "If you are looking to pay off your properties... you could have almost the same cash flow as doubling your portfolio by paying off mortgages." – Ashley ([19:25])

6. Alternative Strategies for Equity and Cash Flow

• Discussed how paid-off real estate can open up options such as private money lending, maintaining cash flow without increasing portfolio size ([20:16]).

7. The Importance of Mindset and Intentionality

• Overcoming self-limiting beliefs is key:

  “I’m amazing with money now... It’s not that hard.” – Liz ([21:43])

• Real estate math is not more complex than “a fifth-grade math education”—most fear is psychological.

8. Practical Advice for Rookies

• Be intentional and plan for the future (pause, reflect, define goals) ([23:45]).
• Live below your means and keep business income reinvested until the portfolio is mature ([23:45]).
• Maintain your W2 job until real estate truly covers living expenses and provides a “safety net” ([24:48]).

  “I don’t call it an emergency fund because I don’t like calling 911. I call it a safety net... it allows us to walk some tight ropes sometimes.” – Liz ([26:39])

9. Niche Investing: Manufactured Homes for Workforce Housing

• Over time, Liz and Dan focused on buying long-term, buy-and-hold manufactured homes (3-bedroom, 2-bath), particularly in rainy Oregon areas ([31:12]).

  • Advantages: Resilience to moisture, high cash flow, affordable purchase prices.

  “There’s a terrific product here for workforce housing... it’s a win, win, win—for the tenants, employers, county, neighborhoods, and us.” – Liz ([31:12])

• Addresses stigma:

  “These aren’t RVs... these are manufactured homes. They’re in neighborhoods, deeded to property, and they’re nice homes." – Liz ([33:22])

10. Exit Strategies: Selling to Tenants

• Instead of large multifamilies, they prefer single units to enable gradual exits in retirement ([34:52]).

  • Helped several long-term tenants become homeowners via seller financing; Liz and Dan provide financial education to prepare them ([34:52]).

  “We educated them on how they could do this. We structured their payment to be similar to their rent; now we hold the note, but they are buying the houses from us.” – Liz ([35:46])

• Mechanics: They only offer this to proven tenants, require a down payment, structure payments to the tenant’s finances, and maintain flexibility ([37:20]).

  • Built on strong relationships fostered by self-management and open communication ([39:41]).

Memorable Quotes with Timestamps

• “I started to believe that I wasn't good with money, and I then proved it because I got into some more credit card debt... I just was like, I don't want to be in this situation.” – Liz ([01:06])
• “It’s not that hard. That’s the other part I think we all have to notice... real estate investing is not much more than a fifth-grade math education.” – Liz ([21:47])
• “If you have the money to solve the problem, then it's not really a problem.” – Tony ([07:04])
• "I call it a safety net because I want to be able to take risks... it's a whole lot easier with the safety net.” – Liz ([26:39])
• “We have wonderful tenants that have stayed with us for a long time... For several, we've gone to them and asked—do you want to own this home? We educated them... and now we hold the note.” – Liz ([35:46])
• “Communication is key. We need to know if something's wrong... we have tenants who have been with us for decades.” – Liz ([39:41])

Important Segments & Timestamps

| Segment | Timestamp | Summary | |---|---|---| | Liz’s money story & limiting beliefs | 01:06–02:38 | Liz describes early struggles and mindset | | Defining good money habits | 03:57–05:16 | Hosts explore what “good with money” means | | Simple, actionable financial plan | 07:34–08:19 | The "three guardrails" | | First rental property experience | 11:21–13:41 | Details on how Liz and her husband got started | | Debt-free investing decision | 16:31–19:25 | The shift to a portfolio without mortgages | | Mindset for rookies/planning tips | 21:43–24:48 | Advice for aligning mindset and action | | Manufactured homes niche | 31:12–34:38 | Why and how Liz focuses on this asset | | Tenant-to-owner exit strategy | 34:52–39:41 | Creative, community-minded approach |

Conclusion

This episode is a masterclass in how ordinary people can build extraordinary financial outcomes by changing their relationship with money, setting clear and values-aligned goals, and investing intentionally. Liz Carroll’s story emphasizes the importance of self-belief, flexibility, and giving back—and provides a realistic, compassionate, and actionable blueprint for rookie real estate investors.

Where to Find Liz:

• Instagram: @mindfulmoneycoaches
• Website: MindfulMoneyCoaches.com