Real Estate Rookie - Episode Summary Title: 5 Portfolio Pivots We’re Making This Year (Real Estate Is Changing FAST)
Host/Author: BiggerPockets
Release Date: May 28, 2025

Introduction

In this episode of Real Estate Rookie, hosts Ashley Kehr and Tony J. Robinson delve into the rapidly changing landscape of real estate investing. They discuss the strategic pivots they're making within their portfolios to adapt to market shifts, share personal experiences, and provide actionable insights for novice investors.

1. Market Overview and Increased Competition

Ashley opens the discussion by highlighting the unpredictable nature of the current market. While some investors panic, others are identifying hidden opportunities.

Ashley Kehr [00:28]:

"In today's unpredictable market, some investors might be panicking about their properties, while others are finding hidden opportunities that are in plain sight."

Tony agrees, emphasizing the need to make strategic moves with existing properties rather than solely focusing on new acquisitions.

Tony J. Robinson [00:37]:

"It's not just about what properties you should buy anymore. It's about making strategic moves with what you already own and being ready to pivot when the market shifts."

2. Portfolio Shifts and Airbnb Strategies

Ashley shares her experience with Airbnb, noting significant changes since 2018. Initially, simple arbitrage strategies worked, but increased competition has necessitated a shift toward offering unique experiences.

Ashley Kehr [01:34]:

"We were one of two Airbnbs in 2018, and now there's probably like 20 of them. So now we're really focused on the unique experiences."

She discusses transitioning to properties that offer distinct experiences, such as an A-frame cabin with amenities like kayaking and paddle boats.

3. Revenue Trends and Market Performance

Tony discusses the performance of their portfolio across different markets, noting a dip in revenue in California's Joshua Tree due to increased competition and higher-quality listings. Conversely, markets like Utah and Tennessee have shown stabilization or growth.

Tony J. Robinson [03:49]:

"The new and increase in competition has been a challenge for us in some markets as well."

Despite challenges in California, Tony is optimistic about the market rebounding due to slowed new listings growth.

Tony J. Robinson [04:00]:

"We're actually up year over year across our entire portfolio in JT. So I'm excited to see that market kind of rebounding."

4. Future Investment Strategies and Market Pivot

Tony reveals plans to shift focus away from existing markets like Joshua Tree and the Smoky Mountains. Instead, he aims to pursue ground-up development and invest in boutique hotels and small motels in more favorable markets.

Tony J. Robinson [05:52]:

"I don't think that I'll purchase anything new in either of those markets, but only because the strategy that I want to use moving forward, I don't think it's best suited for either of those markets."

He cites regulatory challenges in California as a deterrent for ground-up development and highlights the benefits of targeting markets with fewer short-term rental competitors.

5. Portfolio Rebalancing

Both hosts emphasize the importance of rebalancing their portfolios by selling underperforming properties to reinvest in higher-potential assets.

Tony J. Robinson [07:10]:

"We're strategically starting to sell off some of our properties where we have some equity, but they aren't like the best performers."

Ashley echoes this strategy, discussing her decision to sell a partnership property to avoid further losses.

Ashley Kehr [08:00]:

"This may be the first property that I have taken a loss on if this happens."

6. Flipping Experiences

Ashley details her flipping strategies, including successful sales and the use of private money lenders for live-in flips.

Ashley Kehr [09:55]:

"We're under contract right now for 215,000. So not a bad deal."

She explains her approach to live-in flips, which allows for tax-free capital gains by meeting primary residence requirements.

Ashley Kehr [12:14]:

"If I use private money, I'm able to refinance right away and pull all my money out. So I have 0% down into the deal, I guess."

7. Lessons from Flipping

Tony shares his challenging experiences with flipping in California, highlighting the risks of high property prices and unexpected market shifts.

Tony J. Robinson [24:30]:

"Buying something for $300,000 with $50,000 in rehab costs just to make $30,000 feels risky compared to investing in a $100,000 property."

He plans to focus on more affordable markets to reduce risk and rebuild confidence.

8. Cost-Cutting Measures and Software Optimization

Both hosts discuss strategies to reduce expenses, particularly regarding software and subscriptions. Ashley has scaled back her property management tools, while Tony shares his efforts to eliminate unused software licenses.

Ashley Kehr [40:37]:

"I've been going through and like, cutting the things that I do or don't need."

Tony J. Robinson [41:14]:

"We canceled Zoom for everyone except for myself because they can all just go use the Google version of it."

9. Reinvesting in Existing Portfolio vs. Acquiring New Properties

Tony advocates for reinvesting in existing properties to maximize returns rather than solely acquiring new ones. He shares a success story where adding a game room yielded significant cash flow improvements.

Tony J. Robinson [34:53]:

"We added a game room to one of our properties and within the first two months we had made an additional $8,000 compared to the year before."

Ashley supports this approach, mentioning a guest who focused solely on adding value to existing properties without acquiring new ones.

10. Diversifying Investments Outside Real Estate

While primarily focused on real estate, both hosts touch on diversifying their investments. Tony mentions an interest in the restaurant industry, leveraging his wife’s family business. Ashley discusses diversifying her retirement funds into a self-directed IRA and investing in a tech startup.

Ashley Kehr [44:00]:

"I did a rollover into a self-directed IRA and invested in a tech company to diversify a little bit."

11. Conclusion and Takeaways

The hosts wrap up by encouraging rookies to stay resilient amidst market fluctuations, emphasizing that ups and downs are a natural part of real estate investing. They highlight the importance of adapting strategies and reinvesting wisely.

Tony J. Robinson [45:28]:

"The ups and downs in real estate are to be expected. There's always an upward trend when you look at real estate investing."

Ashley Kehr [46:25]:

"We question things, think emotionally."

Notable Quotes with Timestamps

• Ashley Kehr [00:28]:

  "In today's unpredictable market, some investors might be panicking about their properties, while others are finding hidden opportunities that are in plain sight."

• Tony J. Robinson [03:49]:

  "The new and increase in competition has been a challenge for us in some markets as well."

• Ashley Kehr [01:34]:

  "We were one of two Airbnbs in 2018, and now there's probably like 20 of them. So now we're really focused on the unique experiences."

• Tony J. Robinson [34:53]:

  "We added a game room to one of our properties and within the first two months we had made an additional $8,000 compared to the year before."

Final Thoughts

This episode provides a comprehensive look into the evolving strategies of seasoned real estate investors navigating a competitive and fluctuating market. By sharing personal experiences, successes, and setbacks, Ashley and Tony offer valuable lessons and inspire rookies to adapt, reinvest wisely, and remain resilient in their investment journeys.

For more insights and detailed property analyses, visit BiggerPockets and explore their resources tailored for both new and experienced real estate investors.