Episode•March 24, 2022•37 min

Becoming a Landlord with Justin Pogue | Ep. 94

Tiffany welcomes back Award-winning Author & Real Estate Consultant, Justin Pogue to share the essentials for getting started as a first time land lord. About Our Guest Justin Pogue is an award-winning author and real estate consultant. His book, Rental Secrets, has already helped so many people around the country. FOX News, The Mercury News, SFGate, Realtor.com, and ApartmentTherapy.com have all featured his insights for the benefit of their audiences. Since 2003, he has developed and managed apartments, rental homes, and student housing across the United States. Justin holds a degree in Economics from The Wharton School at the University of Pennsylvania, as well as an MBA from The Darden School at the University of Virginia. Connect with Justin Instagram: @rentalsecrets Facebook: https://www.facebook.com/rentalsecrets/ Twitter: https://twitter.com/RentalSecret Connect with Tiffany on Social Media Facebook: Money Talk With Tiff Twitter: @moneytalkwitht Instagram: @moneytalkwitht LinkedIn: Tiffany Grant This podcast uses the following third-party services for analysis: Podcorn - https://podcorn.com/privacy OP3 - https://op3.dev/privacy

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Key Takeaways

1
Mindset is the biggest hurdle for first-time landlords
Butterflies and fear of the unknown never fully disappear until you sign on the dotted line
Most 'what-if' scenarios never happen, and millions of landlords have successfully handled the ones that do
Once you commit and close, many concerns dissipate and new challenges become manageable
2
Always use written agreements—even for room rentals or house hacking
Written contracts clarify roles, responsibilities, and rules for both parties
Even month-to-month roommate agreements should itemize furnishings, guest policies, and common-area access
State laws will govern if no written contract exists, but a written agreement is always preferable
3
Build strong relationships with contractors and vendors—they are invaluable during crises
Contractors have expertise, equipment, and access you may lack
In a flood example, a contractor arrived at 8:30 p.m. and helped extract water and replace flooring for far less than a disaster-recovery company’s $32k quote
Treat vendors like gold; they can provide workable, budget-friendly solutions quickly
4
Look for diamonds in the rough rather than perfect properties
Properties with cosmetic or management issues face less competition
Many problems (landscaping, minor repairs) are inexpensive to fix and can yield strong returns
Changing perspective from 'perfect' to 'solvable issues' makes finding your first investment easier
5
Read every document at closing and schedule morning signings
Title staff may rush you—ignore the eye-rolls; you will live with the mortgage for 30 years
Morning closings ensure lender support if questions arise or changes are needed
Always have a Plan B (and sometimes C) before entering any negotiation or signing

Intro

Tiffany welcomes back Justin Pogue to shift focus from renter advice to the essentials of becoming a first-time landlord.
Justin Pogue is an award-winning author of Rental Secrets and real-estate consultant who has developed and managed apartments, rental homes, and student housing since 2003. He holds degrees from Wharton and Darden.

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– What a Landlord Actually Does

A landlord owns property rented to tenants under a written contract that defines roles and responsibilities. Key duties include property maintenance, appliance repair/replacement, ensuring the unit meets habitability standards (functional kitchen, heat, etc.), mortgage payments, and property taxes.

Becoming a landlord, you are basically, in effect, becoming a small business.
– Justin Pogue

– House Hacking & Roommate Agreements

Even when renting individual rooms, Justin recommends written month-to-month agreements that list furnishings, guest policies, and common-area rules. House hacking lets owners live on-site, learn tenant expectations, and reduce their mortgage while building equity.

House hacking is kind of like landlording with training wheels.
– Justin Pogue

– Mindset & Overcoming the Fear of the First Deal

The anxiety before signing never fully disappears—even experienced investors felt it. Most feared scenarios never materialize, and accumulated landlord knowledge exists to handle the ones that do.

The butterflies that are in your stomach about your first investment, they will never go away until you actually do the first investment.
– Justin Pogue

– Real-World Crisis: Flood Recovery on a Budget

After a drainage canal blockage flooded 16 units, Justin leveraged contractor relationships instead of paying a $32k disaster-recovery quote. Water extraction, sanitization, and new flooring were completed in three days for a few thousand dollars.

Your relationships with your contractors are gold and treat them as such.
– Justin Pogue

– Choosing the Right Neighborhood & Closing Logistics

Evaluate neighboring properties and their management quality—poor neighbors or management can drive good tenants away. Schedule closings in the morning so lenders are available if questions arise, and always read every page of the documents.

Read the paperwork at the signing and pay no attention to the eye roll that you get from the title people.
– Justin Pogue

– Finding Diamonds in the Rough

Perfect properties attract bidding wars. Seek units with cosmetic or management issues that you can solve—these face less competition and can still deliver strong returns after modest fixes.

Books Mentioned

Rental Secrets by Justin Pogue

Resources

Topics

Real Estate InvestingLandlordingHouse HackingFirst-Time InvestorsProperty ManagementMindsetContracts & LegalContractor RelationshipsRisk ManagementRental Property