Real Estate Rookie – Episode Summary

Podcast: Real Estate Rookie
Hosts: Ashley Kehr & Tony J Robinson (BiggerPockets)
Episode: Pay Off Your Property or Buy More? + Handling Repairs with Tenants in Place (Rookie Reply)
Date: January 30, 2026

Episode Overview

In this Rookie Reply episode, Ashley and Tony tackle three big topics facing new landlords and small-portfolio investors:

1. How to handle significant repairs when tenants are in place—what's fair, what's required, and where to draw the line.
2. When and how to review your equity and consider refinancing versus holding or paying off property.
3. How to think about growing with partnerships, specifically residential vs. commercial deals when you’ve got investor interest but limited funds.

The episode keeps a practical, judgment-free tone, focusing on actionable advice for investors working on their first few deals.

Segment 1: Handling Repairs with Tenants in Place ([00:00]–[09:37])

Key Issue:

When a crucial repair (like ripping out a tub & subfloor) renders a bathroom or whole unit unusable, what are the landlord’s duties—and how far should you go in assisting tenants with the transition?

Key Discussion Points & Insights:

• Situation Presented:

  • Landlord Brandon’s tenants discover a bathroom leak after moving in. Repair is a 4–6 day job; landlord offers two options: (1) Rent comp for the days out, or (2) a vacant nearby unit as temporary housing.
  • Tenants accept the temporary unit but want the landlord to pay for a moving truck.

• Ashley’s Take:

  • Repair timeline seems long—“First thing I thought of is four to six days seems like a really long time for them to replace the tub and the subfloor.” ([02:47])
  • Recommends landlords confirm with multiple contractors to shorten job time if possible.
  • Shares a similar experience:
    • “I had a unit where we had similar situation...they did it within 24 hours… Fair housing agreed with me and said 24 hours is a completely acceptable time period to go without a shower to make a repair.” ([02:47])
  • Cautions against moving tenants into another owned unit due to potential liability:
    • “I’d rather put them up at a hotel… What if they cause damage to this unit? ...Their security deposit is on a different property and not that property.” ([05:28])
  • Recommends minimizing direct involvement—prefer using third-party services for temporary housing/boarding pets if necessary.
  • On moving trucks:
    • “I definitely agree not to rent the truck for them and take responsibility of moving their belongings.” ([05:01])

• Tony’s Contributions:

  • Points out that if only the tub is unusable, alternatives may be reasonable:
    • “Maybe you get them a gym pass so they can go shower at the gym if they need to…” ([07:24])
  • Agrees that time frame can likely be reduced; also recognizes smaller towns may have limited contractor availability ([08:16]).

Notable Quote:

• Ashley: “Try to eliminate yourself from the equation as much as possible and use third party resources…” ([06:44])

Takeaway Advice:

• Seek the fastest repair timeline possible; multiple contractor quotes are essential.
• Temporary housing is appropriate but should minimize landlord liability.
• Never feel obligated to pay for tenants' moving costs in an emergency repair (especially without lease stipulation).
• Provide alternatives (hotel, gym, etc.) but keep boundaries clear.

Segment 2: When to Reassess Properties Equity/Refinance ([12:06]–[20:24])

Key Issue:

How often and under what circumstances should landlords evaluate the equity in their properties for refinancing, versus holding or paying off?

Key Discussion Points & Insights:

• Question from Listener:

  • Should landlords regularly assess for refinance opportunities, or just focus on pay-off?

• Tony’s Perspective:

  • Five-year plan with partners is more about flexibility in partnerships than systematically refinancing or selling ([13:02]).
  • Emphasizes that the approach depends on personal goals and risk appetite.
    • “Some folks…would rather have eight fully paid off properties…even if the return is less… They just like the idea of not having a mortgage on any of their real estate.” ([13:47])
  • Others focus on maximizing leverage for growth:
    • “If they get more than X percent equity in a deal, then… they need to go redeploy some of that equity…” ([14:15])

• Ashley’s Story:

  • Discusses her own cash-out refi—first time doing so many years after original purchase ([15:06]).
  • Avoids full leverage; prefers a conservative approach and reserves significant equity in properties for peace of mind.
  • “For a lot of my properties, I don’t want to play around, I don’t want to refinance. Like, I want those paid off. Like, I want that peace of mind...” ([16:34])

• Tax Advantage Highlight:

  • Tony stresses that refinancing (vs. selling) has tax benefits because proceeds from a loan are not taxable like capital gains would be ([17:52]).

Notable Quotes:

• Tony: “I think that’s the beauty of investing in real estate … each one of those strategies could be correct because the right strategy is very much dependent on you as an individual person…” ([18:46])
• Ashley: “It’s actually more important for me…even if I have slower growth, to be under leveraged and to have more equity in my properties…” ([19:37])

Takeaway Advice:

• There’s no “one size fits all”—both paying off and leveraging for growth have merits.
• Analyze your own goals, risk comfort, and cash flow needs before refinancing.
• Leverage tax benefits of refinancing when considering tapping into property equity.

Segment 3: Partnering Up – Residential vs. Commercial for First-Time Investors ([23:19]–[31:01])

Key Issue:

A new investor with limited capital and a potential partner wonders if he should focus on commercial deals for higher returns, or stick with single-family Section 8 homes.

Key Discussion Points & Insights:

• Tony’s Initial Response:

  • Warns against thinking commercial = always better returns.
    • “There can be more cash flow... but it’ll probably also require maybe a little bit more capital as well.” ([23:51])
  • Suggests comparing capital requirements for several single-family homes to one multifamily/commercial property.

• Ashley’s Perspective:

  • Urges deeper analysis of operational complexity:
    • “I think they need to look at other elements of investing in residential like section 8 compared to commercial…” ([26:03])
  • Wonders if new investors fully appreciate the management demands and vacancy risks of commercial properties.
  • “Just the return isn’t always the most important piece. Once you figure out which asset class is better for you… then analyze the deals.” ([26:33])
  • Highlights management differences—commercial and residential property management are not interchangeable.

• Finding Deals & Underwriting:

  • Tony says don’t write off platforms like Crexi and LoopNet—deals do get done there ([29:26]).
  • Emphasizes the necessity of proper deal underwriting and relationship-building with brokers.
    • “Both sides of the coin are dangerous. If you over-project, you end up buying a deal that maybe isn’t going to pencil out and if you under-project you end up buying nothing because all the deals look bad.” ([30:45])

Notable Quotes:

• Tony: “Aligning your skill set with the strategy is one of the most important things.” ([29:26])
• Ashley: “Making sure that you have somebody in your area that does one or the other depending on what strategy you decide on because they are definitely not the same management.” ([28:54])

Takeaway Advice:

• Choose asset class (commercial vs. residential) based on experience, management preference, and local demand—not just headline cash flow.
• Residential (like Section 8) can be simpler and more predictable for newer investors.
• Underwriting and networking are key for commercial—take time to learn the nuances.
• Make sure the partnership fits both parties’ risk tolerance and work input expectations.

Memorable Moments & Quotes

• Ashley’s realism about repair timelines:
  • “Try to eliminate yourself from the equation as much as possible…” ([06:44])
• Tony’s partnership wisdom:
  • “The beauty of real estate investing is that you can talk to 100 different people who have 100 different strategies, and each one of those strategies could be correct…” ([18:46])
• Ashley on peace of mind over aggressive leveraging:
  • “It’s actually more important for me…to be under leveraged and to have more equity in my properties…” ([19:37])
• Tony on patience in dealmaking:
  • “I’ve met tons of folks who have bought right off of [Crexi and LoopNet]. I’ve personally done it myself. It’s just a matter of being consistent and actually picking up the phone and talking to folks…” ([29:26])

Timestamps of Key Segments

• Tenant repair responsibilities / temporary housing: [00:00]–[09:37]
• Portfolio equity review and refinancing: [12:06]–[20:24]
• How to start investments with partners / resi vs. commercial: [23:19]–[31:01]

Tone and Style

Direct, conversational, supportive, and focused on practical solutions for small-scale, newer investors. The hosts emphasize understanding both the “math” and the “mindset” behind decisions and encourage listeners to focus on what fits their lifestyle and risk tolerance.

This episode is ideal for listeners facing their first major tenant repair dilemma, thinking about cashing out equity or paying down debt, or those who have an opportunity to leverage a new partnership and want to make a measured, informed leap into the next phase of building their portfolio.