Real Estate Rookie Podcast Summary

Episode: Building Long-Term Wealth With Just 3 Properties (Less = More!)
Release Date: June 30, 2025
Host: Ashley Kehr and Tony J. Robinson
Guest: Matthew Morneau, Active Duty US Army Soldier and Real Estate Investor

Introduction

In this compelling episode of Real Estate Rookie, hosts Ashley Kehr and Tony J. Robinson welcome Matthew Morneau, an active-duty US Army soldier who embarked on his real estate investing journey at the young age of 21. Matthew's story is a testament to resilience and adaptability, showcasing how he transformed a challenging first property deal into a thriving real estate portfolio despite the frequent relocations inherent in military life.

Matthew's First Real Estate Deal in Oregon

[00:00 - 03:36]

Matthew begins by recounting his inaugural real estate investment—a one-and-a-half-bedroom house in Oregon purchased in 2006. Armed with only $20,000 from a settlement after a severe car accident, he took the plunge into homeownership despite being a college student unfamiliar with real estate intricacies.

• Challenges Faced:
  • Property Condition: The house had a poor foundation, partial structural damage from a fire, and numerous plumbing issues. Matthew had to personally repair the sewer lines, which were compromised in multiple locations.
  • Financing Woes: Acquired a subprime, interest-only mortgage using misleading student scholarship documentation, a common pitfall pre-2008 financial crash.
  • Realtor Advice: Poor guidance led to unexpected closing costs of $20,000 on a $72,000 purchase.

Notable Quote:
"I had a really terrible realtor... if you guys remember that. Interest only. And I gave him student, like scholarship documentation and he used that as income."
— Matthew Morneau [01:52]

Turning Challenges into Learning Opportunities

[03:54 - 05:21]

Tony acknowledges the immense challenges Matthew faced, prompting the question of what kept him from abandoning real estate altogether. Matthew attributes his perseverance to the invaluable lessons learned through adversity. His first deal taught him hands-on problem-solving and instilled confidence in handling complex issues, such as plumbing repairs and assessing property value.

Notable Quote:
"I believe, like if you face your fears, then you're not afraid of it anymore... there's nothing that can scare me."
— Matthew Morneau [03:54]

Progression to Subsequent Deals

[05:21 - 07:51]

Matthew discusses his journey beyond the first property. After military deployments and relocations, he purchased a brand-new house in North Carolina using a VA loan. Although the property burdened him financially for nine years without immediate profit, refinancing at a favorable 2.5% rate eventually yielded significant equity.

• Portfolio Growth:
  • Colorado: Long-term rental property.
  • Arizona: Primary residence transitioning to a midterm rental.
  • Maine: Five-unit short-term rental property comprising cabins and a lakeside cottage.

Notable Quote:
"At nine years I could sell that house because I had to move away from it for military orders with no capital gains tax."
— Matthew Morneau [06:58]

Financing Strategies and Use of VA Loans

[07:10 - 10:34]

Matthew delves into the strategic use of VA loans, which have allowed him to maintain multiple properties simultaneously without large down payments. He emphasizes leveraging the VA's benefits to maximize investment potential, including understanding the importance of funding fees and employing cost segregation to optimize tax benefits.

• Key Insights:
  • VA Loan Advantages: Zero down payment options and favorable interest rates.
  • Cost Segregation: A technique to front-load depreciation, reducing taxable income significantly.

Notable Quote:
"If you're putting 5% down, that'll reduce that fee to only one, one and a half percent."
— Matthew Morneau [25:06]

Building a Diverse Portfolio with Strategic Additions

[12:55 - 16:21]

Matthew explains his investment in Maine’s short-term rentals, including lakefront cabins and RV pads. His approach focuses on adding value through infrastructure improvements and diversifying income streams, such as introducing electric vehicle chargers to generate additional revenue.

• Deal Highlights:
  • Location: Portage Lake, a small community with limited commercial banking options.
  • Financing Tactics: Negotiated directly with local credit unions by presenting pro forma rent projections and leveraging BiggerPockets’ calculators.
  • Property Enhancements: Added RV pads and leveraged local grants for sustainable upgrades like EV chargers.

Notable Quote:
"We grossed $91,000 in revenue the first year despite all of those setbacks."
— Matthew Morneau [21:16]

Overcoming Challenges in Commercial Real Estate

[17:57 - 21:30]

Matthew reflects on the complexities of managing commercial properties compared to his first single-family home. He highlights the importance of thorough inspections and the pitfalls of neglecting due diligence, such as purchasing without a proper inspection leading to unforeseen repairs.

• Lessons Learned:
  • Inspection Importance: Avoiding deals without comprehensive property inspections to prevent costly surprises.
  • Market Fluctuations: Understanding how external factors, like weather patterns and pandemics, can significantly impact rental income.

Notable Quote:
"Buying a house without an inspection taught me so much... it gave me a lot of confidence."
— Matthew Morneau [36:16]

Wins and Successes

[21:30 - 23:19]

Despite initial losses, Matthew achieved notable successes, including substantial revenue from his Maine properties and creating a generational asset for his family. He leveraged local grants for sustainable enhancements, demonstrating innovative ways to increase property value and income streams.

Notable Quote:
"I have four children, so I really look at this as like a generational place we can go."
— Matthew Morneau [21:30]

Strategic Rental Management: Short, Mid, and Long-Term Rentals

[24:05 - 31:59]

Matthew discusses his diversified rental strategies, utilizing multiple platforms like Furnish Finder and Airbnb to maximize occupancy and revenue. He emphasizes the importance of a multi-pronged approach to reduce dependency on a single platform and capture varied tenant needs, from travel professionals to seasonal workers.

• Strategies Implemented:
  • Platform Diversification: Listing properties on multiple rental platforms to ensure consistent bookings.
  • Networking: Collaborating with local businesses and realtors to tap into niche markets.
  • Flexibility: Adjusting rental terms based on seasonal demand and local economic factors.

Notable Quote:
"I want to get connected to the local film bureau... cold call some people... Flexibility is key."
— Matthew Morneau [28:05]

Advice for Military Service Members and Aspiring Investors

[37:47 - 40:34]

Matthew offers invaluable advice to military personnel interested in real estate investing. He highlights the benefits of utilizing VA loans, seeking professional help to minimize stress, and the importance of perseverance despite setbacks. His journey underscores that with strategic planning and resourcefulness, military members can build a robust real estate portfolio.

• Key Recommendations:
  • Use of VA Loans: Take advantage of multiple VA loans to expand holdings without excessive down payments.
  • Seek Assistance: Hire professionals for tasks like moving to reduce personal stress and increase efficiency.
  • Stay Patient and Persistent: Understand that real estate success is a marathon, not a sprint, requiring long-term commitment.

Notable Quote:
"Don't be afraid... take action and you can learn from all those things you were afraid of."
— Matthew Morneau [38:01]

Conclusion and Final Thoughts

Matthew Morneau's journey from a novice homeowner facing significant challenges to a seasoned real estate investor managing a diversified portfolio exemplifies the potential rewards of perseverance, continuous learning, and strategic planning in real estate investing. His story serves as both an inspiration and a practical guide for rookies, especially those balancing demanding careers like military service.

Notable Quote:
"The path to success is not linear. There's a lot of bumps and hiccups and peaks and valleys, but the goal is that when you zoom out, you start to see that upward trend."
— Tony J. Robinson [38:57]

Connect with Matthew Morneau:
For more insights and to reach out to Matthew, listeners are encouraged to connect via LinkedIn or BiggerPockets, as he maintains a presence primarily on these platforms.

Podcast Resources Mentioned:

• Cost Segregation Guide: Available at BiggerPockets Resources
• Landlord Insurance: Steadily Landlord Insurance
• Turnkey Investment Strategies: Rent to Retirement

This episode of Real Estate Rookie underscores the importance of resilience, strategic planning, and continuous education in building a successful real estate portfolio. Matthew Morneau's experiences provide invaluable lessons for beginners eager to embark on their own investment journeys.