Overview of Building a 6-Property Portfolio While Working a W-2 and Raising 6 Kids
This episode of BiggerPockets Real Estate Rookie follows Josh Yates’ journey from rejecting a nearly paid-off mobile home park at 18 to building a six-property portfolio while working a W-2, serving as a pastor, and raising six children. The conversation focuses on how he restarted intentionally, funded his first deals with creative capital, learned to run rentals like a business, and eventually used multigenerational housing to solve both family and cash flow needs.
Josh’s Real Estate Journey
The “worst decision” he ever made
- At 18, Josh’s parents offered him their nearly paid-off mobile home park.
- He turned it down because he wanted to do other things and was tired of being around the property.
- Looking back, he sees it as a major missed opportunity because the park likely would have provided enough income to live on.
How he became an accidental landlord
- At 21, Josh bought his first home for $35,000: a two-bedroom, one-bath property.
- After some light cosmetic work, he moved in with his father due to family health issues.
- Friends from church needed a place to rent, so he rented the house to them.
- That first experience exposed him to landlord life, though it also led to frustration later.
Selling, regretting it, and starting over
- Josh eventually sold that first rental because he felt frustrated and says he let tenants walk over him.
- His wife wasn’t eager to stay in real estate investing at that time.
- Years later, he realized he still wanted the freedom and flexibility real estate could offer, especially for family time.
Building the Portfolio Intentionally
Getting his wife on board
- Around 2021, Josh revisited the idea of investing with a clearer strategy.
- The turning point was shifting from “rental as a side hassle” to “rental as a business.”
- He framed real estate as a path to:
- Spend more time with his family
- Attend kids’ events
- Take vacations without work stress
- Eventually reduce dependence on his W-2 income
Buying close to home
- Josh wanted to invest in his own backyard so he could personally oversee and repair properties.
- He focused on a market near where he lived in Chatham.
- His first serious investing partner was a Zillow-connected real estate agent who became an “investor-friendly” agent and a long-term relationship.
Deal Breakdown: First True Investment Property
Purchase and funding
- Purchase price: about $69,000
- Down payment and closing costs: just over $20,000
- Funding sources:
- HELOC on a prior property
- Tax refund
Property and strategy
- He did not get an inspection, relying heavily on his agent’s assessment.
- The home already had strong fundamentals:
- Good roof
- Good plumbing
- Decent HVAC
- The property later rented for:
- $850/month initially
- Later increased to $1,150/month
- Over time, the rent increases were helped by broader market growth, including a new casino in the area.
Deal Breakdown: Second Property and the BRRRR Mindset
A more intentional rental purchase
- Josh targeted another low-cost home, again around the $70,000–$75,000 range.
- This time, he knew he wanted to renovate and likely refinance.
- Renovation plan:
- Paint
- Flooring
- Refinishing hardwood floors
- He did the rehab himself and used a credit card to fund the work.
Financing details
- He used a combination of:
- Saved cash
- Tax refund
- Cashing out his 401(k)
- Renovation costs came in around $13,000
- The property appraised around $120,000
- He was able to pull out roughly $20,000 through refinance to help fuel the next deal
Key Lessons on Financing and Risk
Recycle equity carefully
- Josh openly acknowledged that some of his early funding decisions were aggressive.
- His guidance:
- Use tax refunds for investing instead of spending them
- Save bonuses and other windfalls
- Be mindful that HELOCs and refinances increase debt obligations
- He noted that part of his ability to manage the HELOC came from eventually selling the property tied to it.
Relationships matter
- Josh emphasized that the most important tool in investing is not just money, but relationships:
- Investor-friendly agents
- Lenders you can call directly
- Contractors you trust
- These relationships made future deals easier and more repeatable.
How He Built His Contractor Network
The “dad life” networking strategy
- Josh found two of his main contractors through a very local connection: their daughters danced with his daughter.
- After getting to know the families, he learned they ran contracting businesses.
- He vetted them by:
- Starting with small jobs
- Evaluating quality and reliability
- Giving larger jobs after they proved themselves
The Multigenerational Housing Plan
Turning one house into a family solution
- Josh found a larger home across the street that initially seemed too expensive at $430,000.
- His wife suggested turning the basement into an apartment for his grandparents.
- The plan expanded when his parents also wanted in on the arrangement.
- The house had:
- A basement apartment setup
- A separate wing with a bedroom, bathroom, laundry, and sunroom
The result
- Josh moved multiple family members into the property arrangement.
- Their previous homes were rented out.
- The income from the setup ended up covering more than the mortgage payment.
- This became a creative real estate solution that also kept generations close together.
Main Takeaways
What listeners can learn from Josh’s story
- Real estate can be a long game; early mistakes do not have to define the future.
- Starting with a small, manageable property near home can build confidence.
- Tax refunds, HELOCs, refinance proceeds, and even a 401(k) can be used creatively — but must be handled carefully.
- Running rentals like a business is critical for long-term success.
- The right spouse conversation often centers on vision, freedom, and family priorities.
- Multigenerational housing can be both a family solution and an investing strategy.
Where to Find Josh
- Facebook: Josh Yates
- YouTube: Next Gen Wealth with Josh
Notable Insight
“Once I told her, look, we’re going to run this as a business, that was kind of the turning point.”
Josh’s story is a strong example of how intentionality, family alignment, and smart use of equity can turn a modest start into a meaningful portfolio.