The BetterLife Podcast

Episode 142: "New Investors: 3 Easy Ways to Get Started in Real Estate"

Hosts: Brandon Turner & Cam Cathcart
Date: April 25, 2025

Episode Overview

In this episode, Brandon Turner and Cam Cathcart break down three straightforward, accessible strategies for new investors to begin their real estate journey. With a focus on actionable steps and minimizing complexity, they share personal stories, practical advice, and encourage listeners to make their first move towards financial freedom through real estate—without compromising their values or lifestyle.

Key Discussion Points & Insights

1. The Simplicity of Starting Small

• Brandon sets the tone by acknowledging that real estate can get complicated with strategies like BRRRR and complex deal structures ([00:00]).
• The episode is targeted at beginners who want “easy ways to buy real estate” to “just get your foot in the door, get in the game” ([00:32]).

2. Strategy #1: House Hacking

• Definition: Living in a property while renting out part of it (bedrooms or units) to offset living expenses ([02:31]).
• Brandon credits himself as one of the early adopters and promoters of the term "house hacking."
  • “I said, how to hack your house and get paid to live for free. There was no name for it. … It became like this worldwide phenomenon in the investment world called house hacking.” (Brandon, [02:31])
• How it Works:
  • Buy a property (single-family or small multi-family) with a low-down-payment loan (e.g., FHA, 3.5% down).
  • Live in one part, rent out the rest.
  • Option to rent out bedrooms even if you don’t own the property.
  • Appeals to both low-budget starters and those with significant resources (example: $4M Hawaii house).
• Benefits:
  • Low barrier to entry.
  • Gain equity while offsetting mortgage.
  • Flexibility to “ride with training wheels.”
• Cam:
  • Shares his experience renting a house in Denver and subletting rooms:
    • “We were paying 50 bucks a month to live there and then saving up money. So…” (Cam, [02:23])
  • Affirms it’s ideal for people with spare bedrooms, especially young couples or singles.

Memorable Example:

• Brandon advises his friend Scott (Hawaii) to buy a $1.3M house and rent out bedrooms, potentially generating $10,000/month in rental income ([04:22]).
• “So you'd be cash flowing thousands of dollars a month to house hack that house? … That could really work forever.” (Brandon, [05:17])

3. Strategy #2: Keep Your House as a Rental When You Move

• Concept: Instead of selling your current residence when upgrading or moving, turn it into a rental ([05:37]).
• Brandon:
  • Shares his decision to rent out his previous Maui house rather than selling, to keep building passive income.
  • “You don't even have to buy a property, you just own a rental.” (Brandon, [06:17])
• Cam:
  • Suggests creative sacrifices: living with parents or in a cheaper rental while renting out the former residence ([06:26]).
  • “Real estate’s hard, but so is not having money. … You could make a sacrifice and say, hey, I'm downsizing into a cheap rental and going to rent this out.” (Cam, [06:46])

4. Strategy #3: The STR (Short-Term Rental) Hack

• Background: Some locations restrict short-term rentals (e.g., Airbnb), but exemptions exist for primary residences ([07:26]).
• Cam:
  • Details the workaround: “If it is your primary house and you are living there, you can still Airbnb that.” ([07:33])
  • Friends rent rooms in primary homes through Airbnb, earning up to $3,000/month, far exceeding their mortgage ([07:35]).
  • Stresses the need to check local regulations:
    • “You do have to … follow the rules on it. But I think that's another great strategy for people.” (Cam, [08:09])
• Brandon:
  • Offers practical upgrades: add a private entry to a bedroom to increase privacy and appeal for guests ([08:35]).
    • “For a couple thousand bucks, all of a sud now you have a really nice rentable unit.” (Brandon, [09:04])
  • Real-world scenario: House in Hawaii has a room with an exterior door perfect for STR opportunities.

Memorable Story:

• Cam tells of a friend with a split-level house renting the lower level to travelers passing through, reducing interaction and maximizing efficiency ([09:17]).
  • “Most of those people get in at midnight and they're out by 6 o’clock. He never sees them, he never hears them.” (Cam, [09:35])

5. Encouragement & Closing Thoughts

• Brandon’s Key Message:
  • Don’t reject these strategies because they seem hard—“They're not hard. They're very, very simple. They're very easy. Yes, they might require sacrifice, but you can do it.” ([09:50])
  • Emphasizes the domino effect of getting your first deal:
    • “The first deal is so important. Get that first deal and then you'll [do a] second, third, fifth, hundredth, and then you get financial freedom.” ([09:50])
• Cam's Final Advice:
  • “I think everybody should get into real estate. There should be. There's a lot of money in that.” ([10:17])

Notable Quotes

| Timestamp | Quote | Speaker | |-----------|-------|----------| | 02:31 | “I said, how to hack your house and get paid to live for free. There was no name for it. … It became like this worldwide phenomenon … called house hacking.” | Brandon Turner | | 02:23 | “We were paying 50 bucks a month to live there and then saving up money. So…” | Cam Cathcart | | 05:17 | “So you'd be cash flowing thousands of dollars a month to house hack that house? … That could really work forever.” | Brandon Turner | | 06:17 | “You don't even have to buy a property, you just own a rental.” | Brandon Turner | | 06:46 | “Real estate’s hard, but so is not having money. … You could make a sacrifice and say, hey, I'm downsizing into a cheap rental and going to rent this out.” | Cam Cathcart | | 08:09 | “You do have to … follow the rules on it. But I think that's another great strategy for people.” | Cam Cathcart | | 09:04 | “For a couple thousand bucks, all of a sud now you have a really nice rentable unit.” | Brandon Turner | | 09:35 | “Most of those people get in at midnight and they're out by 6 o’clock. He never sees them, he never hears them.” | Cam Cathcart | | 09:50 | “They're not hard. They're very, very simple. They're very easy. Yes, they might require sacrifice, but you can do it.” | Brandon Turner |

Key Timestamps

• 00:00 – Episode introduction & framing: Start small, keep it simple
• 01:32 – Personal stories: How Brandon and Cam got started
• 02:31 – House hacking defined & explained
• 04:22 – Real world example: Hawaii house hack math
• 05:37 – Strategy #2: Keep your house as a rental
• 06:26 – Creative ways to leverage low-interest rates and cheap living options
• 07:26 – Strategy #3: STR (Short-Term Rental) Hack
• 08:35 – Practical upgrades to homes for rental potential
• 09:17 – Cam’s friend’s walk-in rental example
• 09:50 – Encouragement to act & closing thoughts
• 10:17 – Final takeaway: “Everybody should get into real estate.”

Takeaways

• Start simple: House hacking, keeping your current residence as a rental, and utilizing your primary residence for short-term stays are all low-barrier entry points into real estate investing.
• Sacrifice and creativity can open doors—literally and figuratively—to building wealth.
• Get your first deal done; momentum and confidence will follow.

This episode offers actionable, encouraging, and relatable guidance for anyone considering their first steps in real estate investing—grounded in the authentic experiences of both hosts.