Overview of Real Estate Rookie by BiggerPockets
Hannah and Easton Jones share how they bought a $675,000 home in the Los Angeles area with about $25,000-ish to get started saving and roughly $80,000 total down/closing costs, despite living on regular W-2 income and facing one of the toughest housing markets in the country. Their strategy was simple but disciplined: save aggressively, use an FHA loan with 9% down, buy a property others passed on, renovate it cheaply, and turn the small back unit into an income-producing short-term rental that eventually covered the mortgage and more.
How They Saved for a Home in Los Angeles
A shared goal made the sacrifice easier
- Both Hannah and Easton always wanted to own a home young.
- They were aligned early in their relationship around:
- homeownership
- saving
- living below their means
- Easton had even taken Dave Ramsey’s course as a teenager, which shaped their mindset.
Their day-to-day money habits
- They lived very frugally:
- cooked at home
- kept grocery spending low
- avoided expensive outings
- made sure they ate before going out with friends
- They tracked spending closely with spreadsheets and reviewed overruns month to month.
- They also used local resources like a church food bank to cut food costs.
- They continued investing while saving, including maxing out Roth IRAs.
Income wasn’t huge, but they hustled
- Hannah transitioned from personal assistant work into software engineering via a boot camp.
- Easton built income through a mix of:
- modeling
- a clothing brand
- graphic design
- restaurant work
- event-related work
- They didn’t rely on a big salary; they relied on discipline and multiple income streams.
The Purchase: FHA Loan, Not 20% Down
Why this deal worked
- They found a property others ignored because it was outdated and needed work.
- The house had a few things they loved:
- a large backyard
- proximity to the beach/freeway
- a small detached back unit with income potential
- That back unit was a major reason they wanted the property.
Financing details
- Purchase price: $675,000
- Loan type: FHA
- Down payment: 9%
- Total cash brought to the deal: about $80,000 including closing costs
- They chose 9% instead of 3.5% because:
- they had the cash
- they wanted a lower monthly payment
- they wanted to reduce PMI and ongoing housing costs
Timing helped
- They closed in July during COVID-era uncertainty.
- Easton’s income had taken a hit, so Hannah’s W-2 income and their savings were important buffers.
- They locked in a sub-3% interest rate, which made the deal even more attractive.
Renovation Strategy: Budget-Friendly and Resourceful
The rehab budget and approach
- They budgeted around $30,000 for renovations.
- They had little room for error because most of their cash went into the purchase.
- Their approach was heavily DIY-adjacent and cost-conscious:
- Facebook Marketplace materials
- secondhand/open-box appliances
- low-cost finishes
- paying labor by the hour instead of using a full-service GC markup
Help from friends and family
- A friend with a construction business let them pay his crew hourly without upcharges.
- Hannah’s dad, a finish carpenter, also helped with construction work.
- They emphasized using relationships and resourcefulness instead of overpaying.
The Hidden Income Stream: A Tiny Unit That Changed Everything
Initial rental use
- They first rented the back unit to Easton’s cousin.
- That alone helped offset their housing cost significantly.
Airbnb/short-term rental pivot
- After traveling through Europe, they realized the tiny unit could work well as a short-term rental.
- They refreshed it and listed it on Airbnb.
Results
- The unit is less than 200 square feet
- It has brought in $3,000 to $5,000+ per month
- In strong months, it has covered the full mortgage
- Their occupancy is strong because of location:
- near the airport
- near the beach
- close to SoFi Stadium and other major attractions
Day-to-day management
- Easton handles guest messaging and in-person communication.
- They pay a cleaner about $100 per turnover.
- Once set up, the operation is relatively manageable because the unit is small.
Life Impact: More Than Just Cash Flow
Hannah was able to leave her job
- The rental income allowed them to live on Easton’s income alone.
- That gave Hannah the ability to leave her software job and stay home with their kids.
- They had planned for that lifestyle shift from the beginning.
Bigger takeaway
- One property created:
- lower monthly housing costs
- rental income
- lifestyle flexibility
- family time
- a path to financial stability without a giant portfolio
Key Takeaways for Rookies
- You do not need 20% down to buy your first home, especially if you use the right loan product.
- Buy the property others overlook if it has hidden upside.
- House hacking can change everything, even with one small unit.
- Frugality matters more than most people think when you’re building a down payment.
- A strong location can make a tiny rental surprisingly powerful.
- Use what you have:
- side hustles
- family skills
- local connections
- secondhand materials
- simple systems
Hannah and Easton’s Advice
- Live like no one else now so you can live like no one else later.
- You don’t need to buy the newest car or go out for expensive dinners.
- Small daily decisions compound into major life outcomes.
- Focus on the long game, stay consistent, and be willing to sacrifice temporarily for freedom later.