Tiny Investments, Killer Cash Flow, and Starting with Just $12K

Summary

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.

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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."

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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."

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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."

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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."

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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."

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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."

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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.

Transcript

[Tony J. Robinson]

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[Ashley Kerr]

This high.

[Tony J. Robinson]

The air is really, really thin up here. The Laurel Road Very High Yield Savings Account Variable Annual percentage yield APY is.

[Ashley Kerr]

Subject to change at any time.

[Tony J. Robinson]

No minimum balance required. Fees may reduce earnings on the account.

[Ashley Kerr]

For full terms and conditions, see LaurelRoad.com Savings LaurelRoad is a brand of KeyBank Member FD.

[Nadia]

This show is sponsored by Airbnb. Fall is here and I've got a trip coming up soon. And while I'm enjoying the autumn vibes, my home will be earning me extra cash as an Airbnb. And the best part? Everything's managed right from my phone so it doesn't mess with my vacation plans or my pumpkin spice lattes. Airbnb makes hosting easy and practical. Whether you're gone for a weekend or a month, it fits right into your lifestyle. Your home might be worth more than you think. Find out how [e-mail] welcome to Nadia.

[Manny]

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[Tony J. Robinson]

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[Manny]

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[Tony J. Robinson]

5G phones only at Metro plus tax.

[Manny]

Bring four numbers and an ID and sign up for any Metro Flex plan not available currently at T Mobile or been with Metro in the past 180 days at. Are you looking for out of the box ideas and strategies to find killer cash flow?

[Tony J. Robinson]

Our guest today used a seller financing strategy and a super small investment of money to begin his real estate business that's now generating crazy cash flow.

[Manny]

I'm Ashley Kerr.

[Tony J. Robinson]

And I'm Tony J. Robinson. And welcome to the Real Estate Rookie Podcast. And I am super excited to welcome to the show. Manny. Manny. What's up, brother? How you doing, man?

[Ashley Kerr]

Hi, Tony. Hi, Ashley. Thank you for having me. Feels very surreal to be here. So happy to be on the show and I appreciate the invite.

[Manny]

Yeah, well, we're excited to kind of dig into your story, Manny. So can you give us a snapshot of your life before real estate investing and kind of what motivated you to actually want to start investing?

[Ashley Kerr]

I didn't really know anything about finance or real estate till after I got out of the army. Before then I didn't really have, I guess, a pathway, if you will. A lot of people around me were kind of just kind of like skating by almost and didn't really feel like they had a plan. And I was kind of the same, to be honest. So I joined the Army a little bit later when I was like 24, and that's kind of what catapulted me into this real estate career pretty much by complete accident too.

[Manny]

So how did, how did that accident occur? What was the thing that kind of made that like light bulb click, like, I need to do this?

[Ashley Kerr]

Yeah. So I was in the army from 2018 to 2022. While I was in the army, I would. So I was a medic, right. So I would be out a lot, like on mission and stuff. And a lot of the time as medics, we don't really do much unless somebody gets hurt. So I would have a lot of downtime, for what it's worth. And in that downtime, I would read as many books I could about business, about real estate, about finance, obviously. I'd listen to BiggerPocket's podcast too, to try to get like my business acumen up, if you will. I got hurt in 2021 pretty, pretty badly to the point where I couldn't walk for like a year and a half. So, yeah, I got, I got discharged. And when I got discharged, I was like, wow, I have nothing lined up because my plan was to stay in the army for at least a little bit longer. And I had a one year old son and I was married to my wife, didn't have a job, so I thought, what do I do? What do I do? I had like maybe around 12k to my name and I scraped that together. As I was getting out, I went and bought my first home. It was a starter home, single family home built in 2021. I 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 up front. And that's kind of what got me into the real estate game once I got that house. So I stayed in there for a year. There's a clause within the VA loan where you have to live there for a year before you can do any rental activities. So stayed there for a year, got back on my feet, started to, you know, be more forward looking. And then I bought my second house with that same VA loan so you can actually use it more than once. There's an allotment to kind of depends on where you live. I think. That being said, after I bought that second house, I was like, okay, I'm going to rent this first one out now.

[Tony J. Robinson]

First meeting, I think, you know, from Ashlyn And I both just like, thank you for your service. Right. I mean, for you to go in and you said you, you couldn't walk for a year and a half, right? It had to be something, something big happened. So thank you, thank you for your service there. But you took what you did in the military and used that as a foundation to start building your real estate portfolio. So the first property, did you buy it with the intention of it eventually becoming a rental or was it like, hey, I just want to get my family situated somewhere.

[Ashley Kerr]

So when I was, when I was still in the military, I started reading about investing, right? And I saw an overwhelming trend how wealthy real estate can make you. So to your point, yes, I wanted to buy with the intent to rent it out. But again, I had no experience, so I wasn't really too sure what I was doing yet. And I kind of just took it as like, okay, I have this short timeline to figure things out, so I'm just going to try to do this as quickly as I can and try to be as efficient as I can with it. So to your point, yes, I did have the intent to rent it out, and it ended up working out pretty well. That house I bought for the first one, I bought for 219, 499. The interest rate was, I think it was 3.125%. So my payment was really cheap. It was like a thousand bucks. And when I was renting it out, I rented it out for 1695. So it was cash flowing like 695 for the first, probably I would say the first, like maybe 18 months after that, the renters left. So I had a really tough time trying to find other renters. And it sat vacant from I think May to, I want to say like the end of the year, like December. So I lost a good amount of money on that. Like close to almost 10,000 trying to rent it out. The downside was so that that neighborhood has an HOA and you can't do like strs or anything like that. So. And I didn't know that at the time because again, I'm still kind of trying to figure things out. So I didn't really have too many strategies other than trying to find a long term renter. And looking back, I probably should have lowered the rent, but I didn't really think too much of it at the time. I have somebody in there now, so I got them in there this past December. But it was definitely a learning experience to have to eat those costs for as long as I did.

[Manny]

Manny when you decided to rent this property out, what were the steps you took to actually get it rent ready? As a rookie investor, having your first tenant come in kind of explain that transition of this is your primary home and now getting it ready for tenants and actually finding tenants and then leasing it out.

[Ashley Kerr]

Yeah, yeah, definitely. So when I bought my second house, I met a realtor that was a longtime friend of my dad's. So that realtor that sold me the second house was also a property manager. And he was like, hey, you have this other house, Let me help you get it rent ready. He's like, and I'll manage it for you too, so you can be completely hands off. I was like, I'll do it. I was like, but I want you to give me a really good deal to be my property manager, and I'll keep buying houses from you exclusively within San Antonio. And he took that deal. So he helped me get everything ready for the first house. Like, he has like the Texas real estate lease. Excuse me, the Texas realtors real estate lease. So he got all that set up. He screened the tenants for me. He also did like the background checks, like all of that stuff, and then found them. So it made everything pretty seamless.

[Manny]

Rookie investors listening. Do you recommend that they take this same route that they find somebody to manage their first rental property?

[Ashley Kerr]

I guess I think it kind of depends. With me, I don't know how much, to be honest. I would have trusted him right away if he wasn't friends with my dad, um, just because I've gotten burned in the past with other, other business deals. But that being said, I think maybe trust your gut, I think is a good way to, to look at it when you're, when you're meeting people and, and doing business with them. If, you know, like completely nothing, it definitely helps, I'll say that much because again, like, I didn't really know too much of what I was doing. And he got me set up with like, hey, you need renters insurance. Hey, this tenant has to have like a history of employment. This tenant needs to have like a decent credit check or credit score. And he would tell me, like, like, for example, like, if somebody didn't have a very high credit score, he would say, well, then I look at like, do they have like, what kind of debt do they have? Like, do they have broken leases? Or is it just like medical debt? Because then, you know, people, people don't intentionally not pay their medical bills if they can't, if they're not able to. So like kind of Things like that, little nuances. It helped like, really open my eyes to see, like, okay, like this is, this is a very people based business and there's more to it than just like, okay, this house is open, you know, pay me rent for it and you know, so on and so forth. So to your point, I do recommend it if they're able to swing it, but I also also recommend being very selective on who you work with.

[Tony J. Robinson]

All right, guys, we're going to take a quick ad break. But first, if you're a rookie investor and you're craving some accountability, then make sure you check out the Momentum Virtual Summit. You'll get to attend eight virtual sessions that cover different real estate investing topics that are super relevant to investing in today's market. Now the most important part though, is that you will get to be involved in an accountability group with like minded rookie investors just like yourself. Now when we come back, we're going to talk to Manny about his seller finance deal that created hyper cash flow form. With that, we'll be right back. All right, let's get back into the show with Manny, guys. So, Manny, I want to get into this kind of cool seller finance deal that you did. But before I do, just one last question. Could you mention before the break that, that you probably lost close to $10,000 on that first rental deal? And, and I can feel your pain, brother, because the second real estate deal that I did, I think we end up losing like close to $30,000 between lost rental revenue, having to cover the mortgage and then we also had to do some repairs, things that came up. So I know you mentioned that potentially dropping the rent price was one thing, but I guess, how did you land on that rent price and I guess what stopped you from, from dropping if you felt maybe that was the solution?

[Ashley Kerr]

I got really used to getting that rental amount because it covered my cost for my property manager, it covered my cost for the maintenance. And then like, I was able to keep some for myself too. I did end up dropping that rent. I dropped it $100 for what it's worth. And once I did that, I was able to, to find tenants. So it's that, it's that vacant for so long, like I said, right from May to December.

[Tony J. Robinson]

I know you, you knocked out a couple of house hacks, right? And that's kind of how you got your feet wet as a real estate investor. But I, I know you also kind of fell into a bit of, a, bit of a glamping business as well. So, so maybe walk us through how was that transition? I guess just what was the initial story behind this idea? To get into the world of glamping?

[Ashley Kerr]

Yeah. So I got into it by complete accident after I bought that second house, that same guy that. That was friend. That is friends with my dad, and that's my property manager. And he. He said, hey. He said, what do you think about tiny houses? And I was like, I think they're super cool. I was like, I would love to, you know, maybe get into them one day. And he was like, well, I have one for you here right now. And he's. He's like, do you want it? And I was like. I was like, can I go see it? And he was like, yeah. So I went over there to go look at it, and it's a. It's an awesome tiny house that he built. Basically like one of those shell homes, like modular almost, but the whole inside is outfitted. It has, like a kitchen, bathroom, and one bedroom and then a living room. It's around 384 square feet, I think, off the top of my head.

[Manny]

So does it sit on a trailer that you can move it or.

[Ashley Kerr]

This is on top of cinder blocks. This is on top of cinder blocks. So when I went there and looked at it, I was like, wow, I really want this. And then the plumber was like, okay, well, it's gonna be like 50 grand. And I was like, well, that's great, but I don't have 50 grand. So he. He ended up saying, like, you know, if you really want it, you know, I'll sell it to you, like, seller finance. And I was like, that's great. I was like, but I don't even have land to put this thing on. So I made a deal with him, and I said, hey, I'll. I'll do the seller finance deal, but let me lease the land so, like, I can at least, you know, like, get this thing going and get on my feet. So.

[Manny]

That's awesome. What a creative.

[Ashley Kerr]

Yeah, I got. I. I got lucky. So, first of all, San Antonio, right? There's a lot of land outside of that city. They call it the Texas Hill country. So that plumber lived out in that area, and he had a good amount of land himself. He had his own house that sat on the land, and then the tiny house down. Down the way from his house, and it was. The utilities were connected to his house, so. So it fed off of his house, and it had, like, its own little plot, and it was separated by a fence. So it was really nice. Like, I Think very Instagramable. I ended up doing a seller finance deal with him. I got it for 50,000. He did me a 5% interest rate, and I think I gave him. I think I gave him 20,000 down that I had saved. And then the rest he financed to me. After that, I put it on Airbnb and it took off pretty well. But the downside was, like, he didn't like the guests that were coming, and the guests weren't really bothering him. I think he was just maybe an old school guy and he wanted his piece. So he was like, hey, you have six months for this land lease. He's like. And then after that, like, you're. You're like, you gotta get out and find somewhere else. And during that time. So it was. It was still kind of the beginning of when I got out of the army, right? So I. I just had surgery on one of my hips. I had surgery on both of my hips, but I had surgery on one side during this time. So, like, I was pretty, like, immobile, if you will. So on top of trying to run this business and trying to find land, I was also dealing with my health too, right? So I was working with my dad's friend again, and I was like, hey, I need some land now. Help me out. So he found me land around 30 minutes outside San Antonio in this area called Medina Lake. The good thing is that this land has no HOA and it has no deed restrictions. So the people out there kind of just do whatever they want to their land, if you will. And I was able to buy that land with the veteran land board loan. So there's a company, I think it's only in Texas. I might be wrong, but that veteran landlord gave me a loan to buy the land.

[Manny]

We have never heard of this before, have we, Tony?

[Tony J. Robinson]

No, I've never heard of that. And this is separate from the VA loan to purchase an actual property. It's literally just for land purchase.

[Ashley Kerr]

Yes, exactly. Exactly.

[Manny]

It's a veteran land board. Like B O A R D. Yeah.

[Ashley Kerr]

I think they go by vlb.

[Manny]

Okay. I just googled it and it does look like it's very specific to Texas.

[Ashley Kerr]

I was talking with my other friends that are veterans, and they were. They were the ones that told me about this. It's not like the VA loan, so it's not zeroed down. The land itself was around 65,000. I think that interest rate at the time was around 5%. And I don't remember exactly the percentage that I paid down, but it was around. I Think it was around five to six grand that I paid down to get the. To get the land. It's like three minute walk from. From Medina Lake. The only downside is the lake is really dry right now. So I was. I'm not going to lie, I was a little nervous to do that because I was like, wow, nobody's going to want to come out here because there's no lake. But that hasn't really been the case.

[Tony J. Robinson]

And, Manny, so what. What was it about that specific piece of land that made you feel like it would be a good location? Like, did you. Did you do research on other Airbnbs? Were there other tiny homes? Like, I know you said there's a lake, but was there anything else that kind of drew you into it?

[Ashley Kerr]

To your point? I looked on air DNA and I looked at a lot of counties around San Antonio, and the place that I picked was number two out of five. I think number one at the time was Canyon Lake, which I hear. I think that lake is drying up as well. And then Medina Lake, which is where I was at, and I think it was Bandera, the town.

[Tony J. Robinson]

Yeah. A few other lakes, and maybe we're in the same area.

[Ashley Kerr]

Right, right. But those. So Air DNA's data showed me that, like, the location I picked was number two. So I was like, okay, like, maybe I can do something with this. When I brought the home over there, it only had a water meter, so it didn't have electricity. Utilities weren't. So it got dropped off there on cinder blocks. And then I'm like, okay, I need to start figuring out, like, what do I need to do? So I called the electrical company. They said, like, hey, we'll come install this pole. And they said we can do underground electric or above ground. We chose, I believe, underground underground.

[Manny]

What was the basis for that reasoning? Like, why did you choose that one compared to the other one?

[Ashley Kerr]

My dad and his realtor friend, they know a bunch of tradesmen and they have a really good friend that they've known for, like, 30 years. It's an electrician. So it was his recommendation, I think, because he said it would be less maintenance for, like, having the wire into the ground. I don't know too much about electrical outlets and electrical, like, setup, to be honest, but I just took his word for it.

[Manny]

Yeah, pretty much anyone who does a new build here does underground electric, too. Yeah.

[Tony J. Robinson]

What was the cost for that, Manny? What did it cost to have that electrical run?

[Ashley Kerr]

So electrical company itself charged me like, 1500. And then the electrician that we Hired charged me another 1500. So it was around three grand out the door. And he set everything up himself, and that included the materials too, for whatever else was needed.

[Tony J. Robinson]

Actually, not too bad, you know, because I. A lot of times it's utility runs that are somewhat the most expensive part. We had Garrett Brown, who's one of the short term rental contributors from BiggerPockets. He had a glamping unit that he built out as well. And if I recall his, his costs and saw his utilities was significantly more expensive. So sounds like he kind of caught a break with the, with the water and with the electrical. So what was your next step then, man? After getting the electrical installed?

[Manny]

Yeah.

[Ashley Kerr]

Yeah. So once electrical was stalled, excuse me, installed, I was like, okay, I have a water meter, I have electricity. Oh wait, I need plumbing. So I was like, okay, let me figure this part out. So I called around some sector companies and they were all telling me, like, this is going to cost a lot because the land that you bought has a lot of rock, which I didn't know about. I mean, I guess Hindsight is 20 20, right? So to answer your question, the next step was to get an aerobic septic tank. And my property manager gave me really good advice. He was like, don't skimp on the, on the septic tank. He's like, get like the top of the line that you can. He's like, because if you want to build more tiny houses out here, they can all be connected over to it. So the aerobic septic tank was 18,000. I didn't have that money up front, so I used a 0% interest credit card to fund it, which I guess in hindsight probably wasn't the best idea because I had to get more creative with that as well. Once I got it installed, it came with the service agreement. So they service it every six months. They'll go out there and look at the tank and do all that stuff. You know, I started to think like, you know, maybe I'm too in over my head and like, I don't know what I'm doing. And like, I started questioning myself and all these things. It was just slowly but surely that it happened. I would say, I would say it took around three to four months for it to be off of Airbnb. I use the same Airbnb listing from the first location. I reached out to Airbnb. I don't know if things have changed since then, but I reached out to them at the time and I said, hey, can I still use the same listing? Because I already had reviews for it.

[Manny]

Oh, but because the property address was changing, you probably had to have them go in the back end and change it then, right?

[Ashley Kerr]

That's exactly what they did.

[Manny]

Yeah.

[Ashley Kerr]

I had to show them proof like, like different things like that I bought this land and I explained to them like, the agreement that I had and I was like, I still want to keep this listing, but I need time to do the construction. I need time to, you know, get everything set up. So, yeah, it was, it was tough. It wasn't, it wasn't anything but easy. You know, my wife kind of tells me that she's like, you just like, look at like the end of how you want to get to things and not like everything in between. So it was, it was really tough to get there. But once I got it set up, it seemed like things have worked out so well.

[Manny]

Tell us about some of the amenities or different features you added that kind of make your glamping site stand out from other ones.

[Ashley Kerr]

Like I was saying before, when the lake dried up, I was like, wow, like, now the lake's dry, I'm done with this. And now I don't know how to get people out here. So if you go and look on the sites, Instagram, like I said, everything, it looks like a shell, right? Like, there wasn't anything. So I started looking around at other glamping sites just to see like, what they were doing. So I added an eight foot privacy fence around the tiny house. I call it a casita. In Texas, a lot of people call it casitas. So I added an eight foot privacy fence fence around it. I added a stock tank pool that doubles as a hot tub too. So it's got like a little propane tank attachment and it's attached to the tiny house. So in the summer, it's really cool. It's got a. I don't know the exact material, but it's not metal inside. It's some sort of like plastic maybe. So when it gets really hot outside, the, the metal doesn't heat up. It's just the plastic coating keeps it, keeps it separate. Right. So. And then in the winter, it doubles as a hot tub so you can flick the propane tank on and the system shoots out kind of like a heater and then we'll heat the water up for you. And it's got like a little motor attached to it. I didn't build it. I hired a company to. And if you've ever seen a stock tank pool, it's kind of like a makeshift pool. It's not the biggest thing, but, man, I think it's so tough to clean.

[Tony J. Robinson]

So ours are more like just kind of soaking tubs, and we actually had to drill a hole in them about like a foot and a half above the base. Otherwise, like, the permitting got a lot more complicated and became like a real pool. And they made it all these other hoops. So ours is really just like, you can lay in it, you know, kind of soak and soak it in a little bit, but then we empty it and the guests refill if they want to use it. So we have some guests who don't even use it, and that way we don't have to worry about cleaning it, you know, for, for every single guest once it's done.

[Ashley Kerr]

That's really smart. I might actually take that idea.

[Tony J. Robinson]

Lessons learned, you know, as we started to scale up, what other amenities have you added to the, to the property?

[Ashley Kerr]

It has like lightning fast WI fi as well. So there's a, there's a TV in there with streaming services. I have like a little game device in there too as well. The inside's furnished with like a futon. It's got. My. My wife decorated it. So like I told her, like, go wild, because I don't know anything about decorating, I'm going to be honest. So she, she went and got all these different, different things from different places. It has the stove in it as well, the shower too. Oh, it has a washer and dryer in it as well. So I added a washer and dryer into where the bedroom is.

[Tony J. Robinson]

Yeah, that's getting them out for 380 some odd square feet. I like that, man. So let me ask, man. I mean, you put a lot of time and effort and energy into getting the listing up and running, I guess. Two questions. How long did it take? From the moment that, you know, you. You moved it from the original location to the new location, how much time did it take to get it live? And then once you've launched it, what kind of revenues have you seen from this investment?

[Ashley Kerr]

Yeah, so construction and everything like that took around three months. So it was three months of no revenue and still having to, you know, pay the carrying costs, if you will. The first year that it was live, it did almost 8,000. That was between Airbnb, Glamp Hub and Hip Camp. And I think I had like one or two bookings on VRBO maybe. So I did okay. Since then, I actually put it on furnace finder just to see what would happen. And I had a solar Company reach out to me that I guess they have students in that area that are training for whatever it is they do. And they said, hey, we need a midterm rental. Your place is the closest for what we need and it has everything that we need. So I did a deal with them. They just moved in January 11th and their move out date is May 11th and they're paying $11.95 a month. Really the only costs to me are the land, the insurance, and then the utilities because I'm carrying those too. They pay for the trash themselves. So I would say like maybe 4 to 500 for my costs. So it's pretty close to almost 700. Cash flow. I think around there, when I first put it on Airbnb, somebody actually trashed it.

[Manny]

Okay, we're going to take a short break. If you haven't already, make sure you are subscribed to our YouTube channel at Real Estate Rookie. And we'll be right back with Manny. Okay. Welcome back from our break. We are here with Manny, who has been giving us insight on how to run a glamping business, along with all of his experiences with having tenants and managing. So Manny, you mentioned that you might have had a tenant that trashed your property, but actually was a guest because it was a short term rental, right?

[Ashley Kerr]

Yeah, that's right. They were actually, I think our first 10 guests at the casita right in the new location. So I, I went as much like all out as I could to try to make it really nice and pretty and everything. And these people came in and it was only supposed to be two guests. I have a ring camera on the front door, but I think they snuck extra people in maybe through the side or something like that or maybe even under the camera. The reason how I know is my cleaners went out there at like 7am they were supposed to be out there at like 11, but they got the time wrong. And when they went out there, there was like, I think like four or five cars there. I'm like, wait a minute, like, why are all these cars here? There's only supposed to be two people. So they, they went there and saw and I messaged them and they were like, oh, like they made up some excuse or something. But after they left, the place was completely trash. They had like some sort of party there or something.

[Manny]

And this is, what did you say? 396 square feet and.

[Ashley Kerr]

Yeah, yeah, something like that. So they had all these people in there. There was, there was all kinds of stuff like, like they like threw up in there. They like, like, all my dishes were like, everywhere, food everywhere. And like, there was even, like, some, like, alleged, like, blood in there, too. I don't know what from. Like, all kinds of weird stuff. And, like, I had to get with Airbnb and, like, show them pictures and, like, they tampered with my. My locks on my. My keypad locks. So they, like, pulled the batteries out and, like, they did all kinds of crazy stuff. I'm just like, why, like, I work so hard to do this.

[Manny]

Yeah. Manny, how did this get resolved with Airbnb? What was kind of the outcome from it?

[Ashley Kerr]

Yeah, so I. I ended up charging them, I think, like, four or five hundred dollars for everything because I had to replace so many things. There were stains, there's all kinds of stuff. It was a huge mess. It took my cleaners, like, a long time. And the funny thing is, so my cleaner. My cleaners live in the neighborhood. So, like, my. My guy texted me and he was like, buddy, he's like, you're going to want to see this. And he, like, sent me all these pictures and I'm like, oh, my God. Like, like, you know something. Another problem. This.

[Tony J. Robinson]

It's unfortunate, right, that that happens from time to time. But, Manny, I mean, I. I don't know if you've seen this in your portfolio, but for us in the short term side, it's like there's. There is going to be those guests that make a mess that don't clean about themselves that caused the headache. But I would say vast, Vast majority of people who stay at our Airbnbs are usually pretty respectful, nice. And you know that they leave the place the same way they found it. Would you. Would you say you've seen the same for yours as well?

[Ashley Kerr]

Yes, 100%. I haven't had any issues since then.

[Tony J. Robinson]

There you go. There you go. That's. That's usually how it goes, man. It's how it's supposed to be, man. Well, it sounds like your hard work is paid off, man. I mean, you. You did the work to secure the. The property itself, seller finance. And you went out and got the land and you did all the work to make it stand out. I guess. What. What's next for you in your glamping business? Like, are you looking at any ways to increase revenue or. Yeah, just. Just what's. What's on the horizon for you?

[Ashley Kerr]

Yeah, defin. I. One thing I found out with having the land and the tiny house, I learned that if I build more, that the first tiny house, the casita will absorb the cost of most things, right? Like. Like the electricity and the water, and then the. The land payment, insurance, all that stuff. So after that, it's almost like pretty much profit, except for maybe like, some of the utilities will go up, right? And then the cleaners. So to your point, I went to Phoenix, Arizona in October before I left here to Tokyo, and I met this team of people. It was an older man and a lady. They had two tiny houses, and you can see them on our Instagram. So they're very, very flashy. It's an orange one and a blue one. I ended up buying the orange one, but then I had to figure out, like, okay, now I have to ship it from. From Phoenix to Texas. That was a whole other thing. The guy that shipped it ended up breaking it. So I got this one seller, Finance, as well. By the way, this one was a lot less down, I think maybe like a couple thousand. If that price for that one was only 23. 23,000. The size is like maybe right under 200 square feet. But it's very, like, nicely decorated. And they're painted, so they have like an Arizona desert skyline on it. The lady that I met commissioned a local artist to paint the entire unit. It's like a container home kind of, but it's so. It's super flashy. Like, if you look at it, there's a blue one and a red one, and they just. They just stand out, right? So I went and bought that one. I had it shipped from Phoenix to Texas. The guy that shipped it broke the floor, so. Because I guess he didn't know what he was doing. So that's something I'm dealing with right now. I haven't had that one listed yet. I have to get the utilities connected for that, which I'm going to use the same electrician. Luckily, I already have a septic, so I can connect that one as well and then connect it to the water. But I want to do the same thing, right, Get. Get the spirit of glamping going there and have it set up and have it rented out. I will say one thing I think that's really saved us is there's a store down the street from there that sells deer corn. So every time I would go out there, I would buy deercorn and I would throw it out, throw it out, throw it out. So now every time people go, I think the deer are conditioned. And it's not just like one or two, it's like 20. Like, there's a ton of them. They go out there and like, people want to take like videos of them and like, you know, pictures of them. And then to the left of that is a really nice scenic view. So I think people are starting to get the experience of like, okay, like, wake up in the morning, have coffee, see the scenic view, and then see all the deer out there as well. It's, it's pretty peaceful that, that orange one. I expect construction to have probably be done sometime next month. There's been a lot of freezes going on in the area, so it's kind of delayed a little bit.

[Manny]

With these properties that you've been able to put together, you're managing them from Tokyo. So I guess kind of my last question here as we wrap up is how many hours a week are you actually spending now that you've built your team on these properties, you know, overseeing them, doing the asset management? How many hours per week?

[Ashley Kerr]

That's a good question. So I think it kind of varies depending on what's needed to be done. Before I left, I built a team out, right? So I have one property manager for the tiny houses and then I have my other property manager for the single family homes. And you know, it's funny, I, I got the times mixed up yesterday and I, I showed up to this meeting at 5am yesterday and I was like, wait, today's not the day. But the funny thing is, is that right after that happened, I got a hit on Airbnb for my other single family home, the second one that I bought, and somebody rented it out for midterm for, for 33 days. And it took me maybe, maybe 30 minutes to an hour of work to get like the messages sent, the short term or the midterm lease sign, like, things like that.

[Manny]

That is really awesome. Like to think that you were able to move across the world to manage your, your properties. Well, Manny, where can other people reach out to you, find more information about you and talk more real estate with you?

[Ashley Kerr]

Yeah, of course, of course. I usually spend time on Instagram mostly for my personal account. It's going to be built by and then my last name, R E Y N A. So built by Reyna. And then my glamping Instagram is just get Casita. That one is one that I'm probably more active on, but 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.

[Manny]

Well, Manny, thank you so much for coming onto the podcast. Thank you again for your service and we really appreciate the value you've been able to bring to our rookie investors. And again, so awesome that you're living in Tokyo, living out your dream life. Just went to Disneyland last week with your son, all while managing your properties in the states. So congratulations on your success.

[Ashley Kerr]

Thank you. Thank you so much for having me.

[Manny]

I'm Ashley, and he's Tony. And we'll see you guys on the next episode of the real estate rookie podcast.