I’m enjoying this new interview series that highlights people doing extraordinary things with their lives. These stories are inspiring, and I’m excited to share more. Previous interviews include How This 28 Year Old Retired With $2.25 Million, How This Couple Paid off $204,971.31 in Debt, and How This Couple Bought an $11,500 RV, Traveled To All 50 States, and Built A Thriving Business.
For today’s post I interviewed 29-year-old Elizabeth Colegrove, a successful real estate investor, property manager, and landlord.
Elizabeth currently owns eight rental properties and shows no signs of slowing down.
I asked readers what questions I should pose to Elizabeth, and below you’ll find their questions along with some of mine about owning rental real estate and managing properties from a distance. Make sure you’re following me on Facebook so you can submit questions for future interviews.
In this interview, Elizabeth explains how she built her real estate portfolio, how she finances each purchase, what she looks for in rentals, how she manages properties remotely, and more. You can follow her blog at Reluctant Landlord.
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Tell me your story and all about you and your husband.
My husband and I met in high school; I was a freshman and he was a sophomore. We started dating at 16 and married after college when I was 22 and he was 23. His dream was to be a fighter pilot in the US Navy, which he achieved. I originally planned to work in corporate America.
As a navy wife with a business degree, finding stable work was challenging. I struggled to get hired in small towns where my husband was stationed, despite strong prospects elsewhere. That led me to pursue a master’s degree at our first duty station to broaden my opportunities. After earning my master’s, I shifted into corporate real estate because continuing in manufacturing wasn’t viable.
Living at a remote duty station in south Texas made me want financial independence. I didn’t want to be tied to a location just because of finances when my husband eventually left the military after a career of frequent moves. To ensure choices and mobility, I decided to build savings and cash flow. I’d tried stocks but always loved real estate. After buying our first house in October 2011, it became clear real estate was the path for me. I focused on building a portable career I could take to each duty station, and that strategy has defined our journey.
How did you manage to build up your real estate empire?
We grew our portfolio in two main ways. First, we bought homes to live in. Depending on your mortgage, you can buy with little to no money down—USDA and VA loans can be 0%, FHA 3.5%, and some conventional loans as low as 5% down. Every place we lived, we purchased a starter home. Once settled and employed, we would upgrade and convert the previous home to a rental.
Second, we lived on one income while investing any pay increases into new properties. We purchased four houses strictly as rentals, typically putting down 15–25% on those. This required strict saving and frugal living. Over time we saved the roughly $140,000 that launched our investing activities.
Can you tell us what your income and expenses are with your real estate empire?
In October 2015 I published a detailed income report that shares specific numbers. Monthly figures vary—months with major repairs like HVAC or water heaters look very different than quiet months. We’re currently overhauling our portfolio, selling three houses and purchasing three more using a 1031 exchange. Once that process is complete, I’ll publish updated reports.
How did you afford so many homes? How do you obtain multiple loans?
Affording multiple properties comes down to understanding mortgages and disciplined saving. Many people put 20% down on their primary residence, which lowers payments but slows portfolio growth. If your goal is to expand, spreading down payments across properties can buy you more units faster. For example, using 5% down on a primary residence and allocating the remaining funds to a rental (assuming you’re under certain property count limits) can accelerate growth.
Even with mortgage knowledge, growth requires cash. We lived frugally and increased income through promotions and side strategies like furnished and corporate rentals. That steady focus on saving and increasing income funded our down payments.
Do you have a specific area you invest in? How do you find good income-producing rentals? What do you look for?
Because my husband is active duty Navy, I invest wherever the numbers make sense—there’s no single “local” for us. Local is wherever we’re stationed. We’ve purchased homes in California, then moved to Washington and kept the investments. I’ll travel to evaluate areas if the numbers are strong; recently I flew to Kansas to evaluate properties a friend sent—those numbers were excellent.
Numbers drive decisions. Every investor has different criteria, but we focus on cash-on-cash returns and demographics that fit long-distance self-management. We look for neighborhoods and homes that minimize expenses while attracting responsible tenants. We avoid spending on items tenants won’t pay for—like landscaping or pest control—because they don’t increase rents. Instead we prioritize features tenants value, such as additional bedrooms or square footage.
How do you manage rentals across the country? What if a repair is needed or a tenant moves out?
Technology has made remote management feasible. We list properties online, collect rent electronically, and coordinate repairs remotely. Keys can be exchanged via lockboxes or hidden locations. The biggest challenge is performing physical inspections to assess damage; for that, I either fly out or ask a friend to check the property. I recommend visiting each property about once a year to avoid unnecessary replacements and to see issues first-hand—sometimes what looks replaceable isn’t worth the cost, and a visit can save thousands.
Who is your target tenant?
We aim for tenants who are manageable from a distance—typically young professionals or people who prefer renting the kind of home they might buy but can’t for various reasons, such as transient work or imperfect credit. Our rentals are generally in the higher end of local markets, newer, and designed to keep expenses low. We avoid amenities that don’t add measurable rental value. Over time we’ve developed a very detailed 20-page lease and addenda to clearly define responsibilities, which reduces disputes and ensures both parties understand expectations.
Have you ever had a bad renter? How do you handle them?
Yes—no tenant is perfect until they leave. Some tenants who seemed ideal during tenancy caused problems at move-out, and vice versa. One lesson: set firm boundaries and enforce the lease. Early in my experience I made exceptions for a tenant out of respect and kindness, but that led to problems later. Once I implemented a comprehensive lease and learned to say no when an issue wasn’t my responsibility, management became easier. Clear rules earn respect and prevent many headaches.
What sacrifices did you make to reach this point?
Our success required significant sacrifices and living well below our means. While friends were socializing during flight school, we shared a house with a roommate. I worked full-time to earn my MBA cash-free in 13 months, which sacrificed sleep and family time. We consistently chose smaller homes, split meals to save money, used points for professional clothing, and I self-manage rentals to save over $25,000 a year. Those sacrifices created the capital necessary to build our portfolio.
What work is required to manage your real estate portfolio?
The job requires responsiveness—picking up the phone when it rings. Owning rental properties offers flexibility and rewards, letting me schedule around family and travel, but I’m never fully off duty. Maintenance calls and tenant inquiries often come at inconvenient times. Still, the trade-off of flexibility, income, and opportunities makes the effort worthwhile.
What’s the best way to get started?
The simplest path is to buy a home to live in first. U.S. tax and mortgage systems support homeownership through programs like VA, FHA, USDA, and conventional loans with low down payments. Buying instead of renting can save money and build equity—use available loan programs strategically to begin building a portfolio.
If you could start over, what would you do differently?
If I could go back, I would have pursued vacation rentals sooner. I had ideas about buying cheaper homes for short-term rentals but delayed until the timing and locations aligned. In any business you’ll have “aha” moments; the key is to learn without letting every new idea derail progress. Focus on a strategy you can execute—aim for consistent, solid performance rather than chasing every opportunity.
What is your best tip for someone who wants similar success?
Real estate is deeply personal. Successful investors turn limitations into strengths. Our frequent moves became an advantage, shaping a long-distance investing strategy. My MBA helped me understand mortgages, distressed properties, and self-management. Don’t copy others blindly—adapt strategies to your unique strengths and constraints. Read widely, learn from others, and develop a plan that aligns with your skills, goals, and lifestyle.
What questions do you have for Elizabeth? Are you interested in owning rental property?