Real Estate Rookie Podcast – Episode Summary

Episode Title:
How to Make 3% More Rent Automatically (Takes 5 Minutes) (Rookie Reply)
Hosts: Ashley Kehr & Tony J. Robinson
Release Date: October 24, 2025

Episode Overview

In this Rookie Reply episode, Ashley and Tony tackle three practical, beginner-focused questions submitted by real estate novices. The main agenda: how to make your rent money work harder, strategies for finding deals in competitive markets (specifically Chicago), and a deep dive into running numbers on a potential $700,000 short-term rental (STR) acquisition. Listeners get actionable tips, honest cautions, and real examples for smooth rookie investing.

Key Discussion Points & Insights

1. Making Rental Income Work Harder

[00:46 – 12:43]

Question: Where should landlords keep rental income to maximize interest before paying expenses?

• Traditional Checking vs. High Yield Accounts:
  Most landlords leave rental income in standard checking accounts earning virtually no interest. Hosts agree this is a missed opportunity, especially with inflation eroding idle cash.
• Banking Platforms for Landlords:
  • Ashley’s Pick: Baselane banking platform.
    • Built for real estate investors, with rent collection, automated bookkeeping, and high-yield savings.
    • “I actually made the switch to Baselane, which is actually a banking platform built for real estate investors.” – Ashley [02:23]
  • Tony’s Pick: Relay Financial.
    • Designed for “Profit First” cash management methodology.
    • Offers multiple checking and savings accounts, automation, and robust interest rates.
    • “Relay is actually the only bank that I know of that is the bank built for managing Profit First…” – Tony [04:15]
• Comparing to CDs/Money Markets:
  • CD and money market rates are often not meaningfully higher than liquid high-yield savings accounts. Flexibility is vital for investors who require quick access.
  • “The only time a CD would make sense is if you’re really trying to force yourself to save money.” – Tony [08:55]
  • Ashley emphasizes keeping security deposits highly liquid.
• Other Digital Banking Tools:
  • Ally (3%+ APY)
  • Wealthfront (Ashley’s personal savings, 3.75%+ with referral perks)
  • Crew (Tony uses for discretionary spending, has referral boosts)
• Bank Bonuses:
  Some personal finance enthusiasts cycle between banks for recurring sign-up bonuses, though it may be cumbersome for those with many auto-pays.

Notable Quotes:

• “It makes more sense to put that [idle cash] into some sort of account that earns more interest.” – Tony [01:21]
• “I definitely don’t recommend a small local bank for your business.” – Ashley [03:06]
• “You could potentially get a couple thousand dollars a year just from doing that [bank bonus cycling].” – Ashley [11:09]

2. Finding Multi-Unit Deals in a Hot Market (Chicago)

[14:45 – 20:00]

Question: Why is it so hard to find cash-flowing 2–4 units in “C-ish class or better” in Chicago, and what to do about it?

• Nationwide Challenge:
  Competitive inventory and rising prices are affecting all rookies, not just those in Chicago.
• Reflect & Evaluate Deal Process: Tony breaks down possible bottlenecks:
  • Not enough deals analyzed?
  • Too-strict buy box leading to over-filtering?
  • Not submitting offers at your workable price?
  • Not getting feedback/learning from rejections?
  • “Most rookies ... never get to the point of getting a bunch of rejections. They usually get stuck at some point before that...” – Tony [16:31]
• Creativity & Due Diligence:
  Ashley shares a rookie case where a buyer spotted an additional 900 sq ft not listed (created a rentable unit). Scanning photos and envisioning alternative uses (e.g., converting a large living room to an extra bedroom) can “create” deals that may be invisible at first glance.
  • “Looking outside the box, what else can you do with the property... what additional income streams?” – Ashley [17:55]
• Actionable Advice:
  • Loosen buy box slightly.
  • Analyze more deals.
  • Make more offers—including those below list price.
  • Seek out properties with hidden or untapped value.

3. Running Numbers on a $700K STR (Short-Term Rental)

[23:02 – 30:09]

Question: Is this $700,000 short-term rental (with $300,000 down, $2,225/mo in payments, and $6,800 monthly gross revenue) a good deal?

• Initial Math:
  $3,800 potential monthly net = $45,600/year, about 15% cash-on-cash return. On the surface, an attractive investment.
• BUT—Critical Cautions:
  • Skepticism About Revenue Projections:
    Automated data sources like Rabu or AirDNA can be very off. Always verify figures by creating your own comp set—dig into comparable listings for property style, location, amenities, and actual bookings.
    • “I would not make a purchase decision on any short term rental property based on a revenue estimate from Rabu, from AirDNA or from any other data provider...” - Tony [24:53]
  • Gross vs. Net Revenue Confusion:
    Rabu, AirDNA, and PriceLabs all handle cleaning fees and payout estimates differently—know if numbers are including/excluding fees and adjust analysis accordingly.
    • “If you don’t understand that, you could either grossly overestimate or underestimate…” – Tony [25:32]
  • Hidden/Underestimated Expenses:
    • Setup, design, and amenities are often missed (even turnkey properties need a refresh—furniture, TVs, utensils, décor).
    • Tony recommends budgeting at least $30/sq ft for STR setup.
    • Operational costs: Cleaning, maintenance, utilities, ongoing upgrades to stay competitive.
    • Set aside revenue as a “reinvestment fund” for constant improvement, not just reserves.
• Ashley’s Take as a Rookie STR Host:
  Supplies, CapEx, and cleaning should be itemized in STR budgeting; many rookies skip software, utilities, or underestimate them.
• Big Picture:
  Do not buy purely based on positive spreadsheet numbers—dive deep into real comps, precise expense categories, and what it takes to compete.

Notable Quotes:

• “We typically recommend at least like $30 bucks per square foot to get a short term rental ready.” – Tony [28:22]
• “The revenue estimators… can’t use that same nuance of deciding which comps we should include and which ones we should exclude.” – Tony [25:48]
• “Short term rentals are different… we’ve got to worry about competition and continually improving the experience.” – Tony [29:28]

Memorable Moments & Quotes

• Ashley: “I really definitely like, you know, a banking platform instead. That's all encompassing.” [03:20]
• Tony (on CDs): “For day to day operational things in the portfolio, I don’t think it makes sense.” [08:55]
• Ashley (on deal creativity): “Just because it's a two bed one bath doesn't mean there's extra space to do something with.” [18:40]

Timestamps for Important Segments

| Topic | Timestamp | |--------------------------------------|:-------------:| | Rental income cash management | 00:46–12:43 | | Chicago deal-finding challenges | 14:45–20:00 | | STR deal deep-dive ($700K property) | 23:02–30:09 |

Tone & Style

The tone remains friendly, warm, and accessible, always encouraging rookies to ask “simple” questions and cautioning them where needed. Both hosts use real-life examples, a conversational style, and give actionable steps without gatekeeping or jargon overload.

Final Takeaways

• Move idle rental income into high-yield, landlord-friendly savings or banking platforms.
• In tough markets, widen your scope, analyze more deals, and look for hidden value.
• Don’t blindly trust STR revenue estimates—dig deep on comps, budget for setup and reinvestment, and verify every expense.

For more, listen to the full episode or join the conversation on the BiggerPockets forums!