Real Estate Rookie Podcast Summary: "How I’m Making 'Passive' Income with 4 Rentals (Working 9-5!)"

Release Date: July 28, 2025
Hosts: Ashley Kehr and Tony J. Robinson
Guest: Mike Buska

Introduction: Mike Buska’s Real Estate Journey

In this episode of the Real Estate Rookie podcast, hosts Ashley Kehr and Tony J. Robinson welcome Mike Buska, a dedicated real estate investor who successfully manages four rental properties while maintaining a full-time 9-5 job and balancing family life. Mike’s journey exemplifies how rookies can build a profitable real estate portfolio without being hands-on or relocating near their investment properties.

Finding the First Property: Securing an Off-Market Deal

Mike’s real estate journey began with a single-family house in Warren, Michigan, which he refers to as his "training wheels." Despite living in New Jersey, Mike found his first deal through BiggerPockets by connecting with a local brokerage renowned for being investor-friendly.

Mike Buska [01:05]: “The deal was brought to me as kind of a pocket, I’m going to call it a pocket listing... they really seemed to work like their bread and butter is working with investors.”

The detailed breakdowns provided by the brokerage on cash flow, capex, and maintenance gave Mike the confidence to proceed with the investment, even though it was initially off-market.

Choosing the Right Market: Why Detroit Over New Jersey

Facing high taxes and elevated purchase prices in New Jersey, Mike sought more promising markets. His research led him to Detroit, attracted by its revitalization and substantial appreciation potential.

Mike Buska [02:08]: “It was kind of shocking in comparison to the other markets I was doing homework on. And really it was kind of that Warren Buffett, you know, be greedy when others are fearful, quote.”

Mike highlights Detroit’s growth and contrasts it with common misconceptions, emphasizing the city’s hidden opportunities.

Managing Long-Distance Investments: Overcoming Geographical Barriers

Mike’s decision to invest far from his home required strategic planning. Inspired by David Green’s Long Distance Investing, he realized that distance should not hinder his investment strategy if he leverages the right systems and team.

Mike Buska [03:53]: “If you're not going to be the one doing the work on the property due to distance or ability, what does it matter if it's across the street or if it's a thousand miles away.”

This mindset allowed Mike to focus on markets that offered favorable rent-to-price ratios without the burden of on-site maintenance.

Navigating Property Taxes: Lessons Learned

Mike shared a significant lesson from his first investment: the impact of property tax reassessments. Initially, he underestimated the taxes, leading to a substantial increase post-purchase.

Mike Buska [06:46]: “I knew nothing about SEVs. I knew nothing about millage rates and the way you can do crazy analysis with taxes that I don't think a lot of people do, especially in the beginning.”

This experience taught him to conduct thorough tax analyses by consulting the county assessor’s website rather than relying solely on platforms like Zillow.

Building a Reliable Team: The Backbone of Long-Distance Investing

A solid team is crucial for managing long-distance properties. Mike attributes much of his success to the connections he made through BiggerPockets, particularly with Fireteam Realty and his agent, Jess Caldwell.

Mike Buska [16:56]: “They run numbers like no agency I've ever seen. They will send detailed BiggerPockets reports along with Excel sheet breakdowns of every single deal that they push out.”

Additionally, Mike found his property manager independently, ensuring a hands-on approach and local expertise.

Financing and Choosing the Right Lender

Initially, Mike used a lender connected through his turnkey provider. As he progressed, he transitioned to a local broker who consistently offered better interest rates and responsive service.

Mike Buska [21:18]: “For efficiency, just saving time and getting a solid rate, I lean toward Chris and the broker side and being so far away and being so busy with my W2 and I got my wife and my daughter and everything else here.”

This shift underscored the importance of aligning financial partnerships with one’s investment strategy and geographical needs.

Property Management: Outsourcing for Efficiency

To maintain a passive investment approach, Mike employs a property manager. He emphasizes the importance of selecting a manager with local expertise and a personal investment mindset.

Mike Buska [22:22]: “I felt more confident in that guy who still had like a 20-year track record. He was a local investor, he knew, and he could very easily mention things like street by street, neighborhood by neighborhood.”

Outsourcing property management allows Mike to focus on scaling his portfolio without getting bogged down by daily maintenance issues.

Bookkeeping and Systems: Streamlining Financial Management

Effective bookkeeping is a cornerstone of Mike’s investment strategy. He utilizes Excel sheets to track bills, automate payments, and maintain a clear overview of income and expenses.

Mike Buska [28:59]: “I have designated sheets that have everything broken down by property. Every bill that needs to be paid... is set to auto-pay and paperless billing.”

This disciplined approach ensures financial clarity and minimizes the risk of missed payments or overlooked expenses.

Scaling the Portfolio: Transitioning to Multifamily and Short-Term Rentals

Expanding from single-family homes, Mike ventured into small multifamily properties and short-term rentals. Multifamily investments offer higher income with fewer property units, enhancing scalability.

Mike Buska [37:35]: “I saw the power of getting more income out of less roofs and less hot water tanks... It was appealing, so I went with it.”

Conversely, his short-term rental in the Poconos provided significant cash flow during peak seasons but required more hands-on management.

Evolving Mindset: Beyond Cash Flow to Forced Equity

While cash flow remains important, Mike now also values forced equity through property renovations. This strategy increases property value and equity, providing long-term financial benefits.

Mike Buska [41:08]: “I love how you can scale and then leverage some of those assets a little bit better than a single-family home.”

By focusing on both cash flow and equity growth, Mike enhances his portfolio’s overall profitability and sustainability.

Conclusion: Advice for Rookie Investors

Mike Buska’s journey underscores the importance of strategic market selection, building a reliable team, effective financial management, and balancing cash flow with equity growth. His experience serves as a valuable blueprint for rookies aspiring to achieve passive income through real estate while maintaining a full-time career.

Mike Buska [42:49]: “For Instagram would be the best bet. I have a designated... Yonder REI, like yonder long distance.”

Connect with Mike:
Instagram: @YonderREI
Real Estate Page: Yonder REI

This episode of Real Estate Rookie offers actionable insights for novice investors aiming to navigate the complexities of real estate investing while managing other life commitments. Mike’s practical advice and real-world experiences provide a roadmap for building a sustainable and profitable real estate portfolio.