Real Estate Rookie Podcast: Tiny Investments, Killer Cash Flow, and Starting with Just $12K

Episode Overview In this compelling episode of the Real Estate Rookie podcast, hosts Ashley Kerr and Tony J Robinson sit down with Manny Reyna, a veteran and burgeoning real estate investor who transformed his life post-military service through strategic real estate investments and innovative glamping ventures. Released on February 3, 2025, this episode delves deep into Manny's journey from an Army medic to a successful real estate entrepreneur, offering invaluable insights for novice investors aiming to build a modest yet profitable portfolio.

1. Guest Introduction and Pre-Investment Background

Manny Reyna begins by sharing his life before diving into real estate, highlighting his lack of financial or real estate knowledge prior to his military service.

Manny Reyna [02:17]: "I didn’t really know anything about finance or real estate till after I got out of the army... I was kind of the same, to be honest."

Joining the Army at 24 provided Manny with structure and exposure, ultimately catapulting him into the real estate sector by what he describes as a "complete accident."

2. Transition from Military to Real Estate Investing

Manny recounts his time in the Army from 2018 to 2022, where he served as a medic. During his service, he utilized downtime to educate himself by reading books on business, real estate, and finance, and regularly listened to the BiggerPockets podcast to bolster his business acumen.

A pivotal moment occurred in 2021 when a serious injury led to his discharge. Faced with uncertainty and responsibility as a new father, Manny leveraged the knowledge and savings he had amassed—$12,000—to purchase his first home.

Manny Reyna [02:54]: "I bought my first home... used that 12 grand to cover the closing costs. Luckily I got to use the VA loan, so I didn't have to pay anything down upfront."

3. First Investment Property: Acquisition and Early Challenges

Manny acquired his first property, a single-family home built in 2021, for $219,499 at an interest rate of 3.125%, resulting in a manageable monthly payment of approximately $1,000. He intentionally purchased this property with the goal of renting it out to generate cash flow.

Manny Reyna [05:29]: "I wanted to buy with the intent to rent it out... but I had no experience, so I wasn’t really too sure what I was doing yet."

Upon renting, Manny achieved a positive cash flow of $695 per month. However, he soon encountered significant challenges:

• HOA Restrictions: The neighborhood's Homeowners Association (HOA) prohibited short-term rentals, limiting his rental strategies.
• Vacancy Period: After 18 months, Manny struggled to find new long-term tenants, leaving the property vacant from May to December and incurring nearly $10,000 in losses.

Reflecting on this period, Manny acknowledges that he could have mitigated some losses by adjusting rental prices.

Manny Reyna [07:33]: "Looking back, I probably should have lowered the rent, but I didn’t really think too much of it at the time."

4. Securing a Reliable Property Management Strategy

Learning from his initial setbacks, Manny sought the expertise of a trusted realtor and property manager—a longtime friend of his father—to prepare his first property for rental. This collaboration included tenant screening, background checks, and lease setup, significantly streamlining the rental process.

Manny Reyna [07:53]: "He screened the tenants for me... found them. So it made everything pretty seamless."

When asked about recommending this approach to rookie investors, Manny emphasizes the importance of trust and due diligence:

Manny Reyna [09:00]: "Trust your gut... being very selective on who you work with."

5. Implementing Seller Financing for Expanded Investments

Transitioning to the core of this episode, Manny introduces his innovative use of seller financing to acquire additional properties with minimal upfront investment. This strategy allowed him to expand his real estate portfolio without the need for traditional financing methods.

6. Venturing into the Glamping Business

Manny's entrepreneurial spirit led him to the glamping sector—a niche market combining luxury and camping. This shift was initially serendipitous, sparked by a conversation with his property manager about tiny houses.

Manny Reyna [12:10]: "I got into it by complete accident after I bought that second house... he was like, do you want it? And I was like, yeah."

He purchased a 384-square-foot tiny house for $50,000 through a seller financing deal with a favorable 5% interest rate, putting down $20,000 from his savings. Despite initial hurdles, including securing land and managing utilities, Manny successfully listed his tiny house, referred to as a "casita," on Airbnb and other platforms.

7. Overcoming Construction and Operational Challenges

Establishing his glamping site involved several logistical challenges:

• Utility Setup: Manny coordinated with electricians to install underground electricity, costing approximately $3,000, and secured an aerobic septic tank for $18,000 using a 0% interest credit card.
• Land Acquisition: Utilizing a Veteran Land Board loan, Manny purchased land near Medina Lake, Texas, for $65,000, ensuring no HOA or deed restrictions facilitated greater creative freedom.

Manny Reyna [16:53]: "It's literally just for land purchase... it's very specific to Texas."

Manny also faced setbacks, such as a broken floor during the shipping of another tiny house model, underscoring the complexities of remote property management.

8. Crafting an Attractive Glamping Experience

To differentiate his glamping offerings, Manny incorporated several unique amenities:

• Privacy and Comfort: An eight-foot privacy fence surrounding the tiny house and a stock tank pool that doubles as a hot tub enhanced the guest experience.
• Modern Conveniences: High-speed Wi-Fi, streaming-enabled TVs, game devices, and in-unit washer and dryer were added to increase appeal.
• Aesthetic Enhancements: Thoughtful decoration and artistic touches, often with his wife’s creative input, made the space inviting and Instagrammable.

Manny Reyna [23:04]: "I added an eight foot privacy fence... a stock tank pool that doubles as a hot tub."

These features not only attract guests but also ensure positive reviews and repeat business.

9. Financial Outcomes and Revenue Streams

Manny provides an honest account of the financial aspects of his glamping business:

• Initial Revenue: In the first year, the glamping site generated nearly $8,000 across platforms like Airbnb, Glamp Hub, and Hip Camp.
• Current Earnings: With ongoing bookings and a recent midterm rental deal, Manny reports a monthly cash flow of approximately $700 after covering land, insurance, and utilities.

Manny Reyna [26:08]: "The first year that it was live, it did almost 8,000... since then... cash flow around almost 700."

Despite occasional setbacks, such as a guest party that resulted in property damage, Manny successfully navigated these challenges by enforcing stricter guest policies and leveraging platform support to mitigate losses.

10. Scaling and Future Expansion

Looking ahead, Manny plans to scale his glamping business by adding more tiny houses. He highlights that the fixed costs associated with utilities and land are offset by the revenue from each additional property, making expansion increasingly profitable.

Manny Reyna [31:52]: "If I build more, that first tiny house... will absorb the cost of most things, right?... then it's almost like pretty much profit."

Additionally, Manny is exploring creative solutions to logistical issues, such as using local artisans for unique property finishes and optimizing remote management through a dedicated team.

11. Remote Property Management and Time Investment

Despite relocating to Tokyo, Manny efficiently manages his properties through a robust support team, requiring minimal weekly hours:

Manny Reyna [35:18]: "It kind of varies depending on what's needed to be done... Maybe 30 minutes to an hour of work to get the messages sent, the lease signed."

This streamlined approach underscores the feasibility of remote real estate management with the right infrastructure and personnel.

12. Final Insights and Advice for Rookie Investors

Manny concludes by emphasizing the importance of:

• Continuous Learning: Even without prior experience, self-education through books and podcasts can lay a strong foundation.
• Strategic Financing: Leveraging seller financing and specialized loans, like the Veteran Land Board loan, can significantly lower initial investment barriers.
• Building a Reliable Team: Trustworthy property managers and service providers are crucial for seamless operations.
• Adaptability: Being prepared to pivot strategies based on market feedback and personal experiences ensures long-term success.

Manny Reyna [37:21]: "Happy to chat with anybody that wants to talk. Maybe they can learn lessons that I had to learn the hard way so they don’t have to go through them."

Notable Quotes

• Manny Reyna [02:17]: "I didn’t really know anything about finance or real estate till after I got out of the army."
• Manny Reyna [05:29]: "I wanted to buy with the intent to rent it out... but I had no experience."
• Manny Reyna [09:00]: "Trust your gut... being very selective on who you work with."
• Manny Reyna [12:10]: "I got into it by complete accident after I bought that second house."
• Manny Reyna [16:53]: "It's literally just for land purchase... it's very specific to Texas."
• Manny Reyna [26:08]: "The first year that it was live, it did almost 8,000... since then... cash flow around almost 700."
• Manny Reyna [31:52]: "If I build more, that first tiny house... will absorb the cost of most things, right?... then it's almost like pretty much profit."
• Manny Reyna [37:21]: "Maybe they can learn lessons that I had to learn the hard way so they don’t have to go through them."

Conclusion

Manny Reyna's journey exemplifies how determination, strategic financing, and adaptability can transform humble beginnings into a thriving real estate and glamping business. His experiences offer a blueprint for rookie investors aiming to navigate the complexities of real estate with limited capital. By sharing both successes and setbacks, Manny provides a realistic and inspiring roadmap for building a sustainable investment portfolio.

For more insights and real estate strategies, follow Manny on Instagram at @builtbyreyna and @getcasita, and stay tuned to Real Estate Rookie for future episodes filled with expert advice and inspiring stories.