Real Estate Rookie Podcast: "Waiter to Financial Freedom with 5 Rentals and $5,000/Month Cash Flow"

Date: December 22, 2025
Hosts: Ashley Kehr & Tony J Robinson
Guest: Andres Martinez

Episode Overview

This episode dives into the inspiring story of Andres Martinez, who immigrated to the U.S. at 18 and hustled his way from washing dishes to becoming a financially free real estate investor. Through creative deal-making and the innovative "co-living" rental strategy, Andres built a portfolio of five properties generating $5,000/month in personal cash flow—all after quitting his W2 job with only $300 in his bank account. The conversation covers his journey, actionable advice for rookies, and hard-won lessons about hustle, resilience, and the nuts and bolts of co-living investments.

Key Themes & Insights

1. Bias Toward Action & Immigrant Hustle [00:00–03:37]

• Andres’s background: Arrived in the U.S. at 18, worked every possible job (dishwasher, busboy, waiter, construction, college student), always side hustled.
• Couldn’t qualify for a mortgage as a waiter paid “in cash,” even when earning near six figures.
• Discovered creative real estate (“how to buy houses without any banks, any credit”) via Pace Morby’s mentorship and BiggerPockets, leading to his first wholesale deal.

“When you come from poverty, all you have is hustle, grit, and you cannot give up, right? The hopes of my ancestors lay on my shoulders. I gotta keep going no matter what.” —Andres [06:33]

2. Building Starting Capital: Side Hustles and Wholesaling [03:37–07:33]

• Engaged in various side hustles: selling clothing, furniture, appliances, and even anime toys on campus to pay tuition.
• Transitioned into wholesaling: completed 6 deals in a year, which provided enough cash to attempt buy-and-hold investing.

3. Discovering and Defining Co-Living [07:33–11:00]

• Saw another investor use a “room rental” strategy and initially doubted its viability.
• Researched co-living: renting out individual bedrooms, shared kitchens/baths, commonly facilitated on platforms like PadSplit.
• Not focused on building an in-house “community” (like pizza parties); tenants mostly independent.

“I’ve had only one turnover since I started in 10 months, so I think I’m doing something right…Give them a good product.” —Andres [07:49]

4. Why Co-Living is So Hot Right Now [11:00–13:39]

• Co-living addresses rising rents and lack of affordable options.
• Studio apartments have become unattainable for many; co-living offers shelter to those making less (e.g., teachers, nurses, working class).
• Strong demand validated via Facebook Marketplace test ads for room rentals.

“What happens to the people that are making minimum wage? Where are they living?” —Andres [12:30]

5. Executing the Strategy: Testing, Marketing & Legal Considerations [13:39–18:27]

• Tested market demand with Facebook/Craigslist/Zillow ads—received 13–14 inquiries per day.
• Screened tenants by examining social media profiles; chose introverts over “community builders” to reduce conflict.
• Legal concerns: reviewed contracts carefully after bad advice from onboarding company.

“If their profile picture is themselves holding a few guns with a lot of weed and a couple of pit bulls, they’re probably not going to qualify…” —Andres [16:38]

6. Property Acquisition & Building the Portfolio [19:50–22:09]

• 5 properties, 36 rooms total (avg. 7–8 per house, after renovations/additions).
• Adds walls/rooms to existing houses; acts as his own general contractor after a disastrous experience where a contractor stole $5,000 in materials.
• Completed aggressive DIY renovations, sometimes sleeping on-site to safeguard work.

“I have to save the property, right? …The only way that I knew that it's right is if I can do it myself…” —Andres [22:13]

7. Overcoming Hardship: Health & Financial Challenges [22:09–24:09]

• Dealt with immense stress: contractor fraud, medical emergencies (heart event, wife’s IVF).
• Emptied savings but pushed through—property rented before construction finished.

8. Deal Sourcing & Success Metrics [26:28–29:19]

• Looks for houses with 1600+ sq ft and low PITI payments via “subject to” and seller financing (low interest).
• Passes on deals that won’t clear $2,000/month net (before splitting with partners).
• Importance of parking for tenants (Texas market), and setting house “culture” in first 3 months.

“When I talk to other co-living investors, the moment they tell me ‘it’s easy,’ I stop talking to them…It’s very hands-on.” —Andres [28:48]

9. Quitting the W2 & Achieving Financial Freedom [32:11–33:37]

• Quit waiter/assistant manager job with only $300 in the bank (“I just couldn’t do it anymore”).
• Used credit cards and “other people’s money” (OPM) to close first deals; structures profit split with private partners (often 50/50).
• Now earns $5,000/month in personal cash flow; focus is on scaling and ground-up co-living development next.

“At that point, I had $300 in my cash flow…and I quit my job.” —Andres [32:46]

10. Structuring, Financing, and Scaling the Model [34:06–36:06]

• All deals with private lenders, using creative financing.
• Typical all-in cost per property (acquisition, repair, furnishing): $65K–$80K.
• Investors get 40–50% cash-on-cash returns.
• Next phase: building co-living spaces from the ground up.

“That’s why I’ve had so much success raising money at the beginning—because that’s really hard to find.” —Andres [34:55]

11. Financial Results & Takeaways [36:06–37:04]

• 97% occupancy rate, only one turnover in a year.
• $10,500 cash flow/month from five properties; $5,000 after partner splits.
• Focus on good tenant screening, property improvements, and responsible scaling.

Notable Quotes & Timestamps

• “When you come from poverty, all you have is hustle, grit, and you cannot give up, right?” —Andres [06:33]
• “I’ve had only one turnover since I started in 10 months, so I think I’m doing something right… Give them a good product.” —Andres [07:49]
• “What happens to the people that are making minimum wage? Where are they living?” —Andres [12:30]
• “If their profile picture is themselves holding a few guns with a lot of weed and a couple of pit bulls, they’re probably not going to qualify…” —Andres [16:38]
• “I have to save the property, right? …The only way that I knew that it's right is if I can do it myself…” —Andres [22:13]
• “When I talk to other co-living investors, the moment they tell me ‘it’s easy,’ I stop talking to them…It’s very hands-on.” —Andres [28:48]
• “At that point, I had $300 in my cash flow…and I quit my job.” —Andres [32:46]
• “That’s why I’ve had so much success raising money at the beginning—because that’s really hard to find.” —Andres [34:55]

Important Segment Timestamps

• [00:45–03:27] Andres’s immigration story, early work, and entrepreneurial beginnings.
• [07:33–11:00] What is co-living? How does it work and why is demand rising?
• [13:39–18:27] Testing the co-living market, marketing, screening, and tenant selection.
• [19:50–22:09] Renovating properties, contractor troubles, and learning to DIY construction.
• [24:09–26:28] Reflections on hardship, resilience, and “the grind.”
• [26:49–29:19] Buy box, evaluating deals, calculations, and building tenant “culture.”
• [32:25–34:06] Quitting W2, going all-in, living lean to achieve freedom.
• [34:06–36:06] Creative financing, structuring partnerships, ground-up co-living as the next vision.
• [36:20–36:53] Current portfolio cash flow, occupancy, and conservative growth philosophy.

Conclusion

Andres’s journey encapsulates what the Real Estate Rookie podcast is all about: relentless hustle, practical advice for new investors, and raw honesty about the highs and lows of the real estate game. He demystifies co-living as both an investment and a social solution, proving that financial freedom is possible for ordinary people willing to act, adapt, and persevere.

Connect with Andres:
Instagram: @Andres_Martinez_C

Listen for actionable tips, real-life stories, and behind-the-scenes looks at building financial freedom one rental at a time.