Making $92,000 (Tax-Free) from One Real Estate Deal

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.8 • 1.7K Ratings

🗓️ 15 September 2025

⏱️ 44 minutes

🔗️ Recording | iTunes | RSS

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Summary

Think you need a big bank account or extensive investing knowledge to buy a rental property? Today’s guest got started with no money down, and this first real estate deal would open the door to multiple deals and six-figure profits. How did he pull it all off? You’re about to find out! Welcome back to the Real Estate Rookie podcast! Tony Borman hit it out of the park on his first two deals. After buying his first property with $0 down and selling it for a $50,000 profit only a couple of years later, he then found and fixed a property that gave him a $92,000 tax-free payday. But then he hit a snag in his investing journey—buying a rental that lost money once property taxes spiked and going through not one, not two, but seven different contractors on his very first house flip! Despite the recent hiccups, Tony is investing for the long haul, and in this episode, you’ll learn how keeping your W-2 job can help you absorb large losses as you’re learning the ropes. Tony also shares about the difficulty of finding (and keeping) great contractors, the biggest mistakes rookies make when analyzing rental properties, and the risks every investor needs to know about before tackling home renovations! In This Episode We Cover Creative ways to buy a rental property with as little as $0 down How to fix and flip properties (while living in them) for a massive tax-free payday The investing strategy that pays your mortgage (and helps you live for free!) The many benefits of keeping your W-2 job while investing in real estate House flipping risks every rookie needs to know about before getting started The costly mistake you can’t afford to make when analyzing a rental property And So Much More! Check out more resources from this show on ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠BiggerPockets.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ and ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://www.biggerpockets.com/blog/rookie-614 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠[email protected]⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Today's guest spun a $0-dollar-downed starter home into a surprise $50k profit, then turned those funds into a $92,000 tax-free payday.
0:12.9	But then almost nearly lost everything to a nightmare flip.
0:16.8	So stick around slurring the exact moves and the mistakes that can launch or sync a
0:21.8	Rookie investor.
0:27.2	This is the Real Estate Rookie Podcast. I'm Ashley Care. And I'm Tony J. Robinson. And today we're
0:33.2	joined by another Tony. Tony, thanks to join us today, brother. Thanks so much for having me.
0:37.1	Appreciate it. Okay, so let's start off when you first walked into that 1950s Jacksonville,
0:43.5	fixer-upper. What hit your nose? What did the walls look like? Tell us about this property
0:49.4	and how broke you were feeling right when you walked in. Yeah, absolutely. So this is a handful of years back.
0:57.1	My wife and I were, you know, young, early in our careers and decided it was time to try to buy a
1:06.0	property. So this was every bit of, every bit of house we could afford afford probably a little bit that we didn't.
1:13.7	And yeah, the place was in rough shape.
1:16.8	We got it from a guy going through a rough divorce.
1:20.7	And so it was like, you know, grimy, just needed a lot of TLC and a lot of love.
1:26.9	So nothing super major. It was pretty cosmetic,
1:32.6	but it just needed a lot of TLC. So how did you purchase this property? What did the funding look
1:40.3	like for it? Yeah. So like I said, I mean, we were young and broke. We actually didn't even
1:47.1	put any money into the down payment on this one. We did a three and a half percent down loan,
1:54.4	but we actually borrowed that three and a half percent from my father-in-law. So we had,
2:00.1	you know, zero dollars into the deal. Like I said, you know, the mortgage
2:04.0	payment was everything we could afford. So it was scary. So after you've got this property,
2:12.5	tell us about you and your wife walking through it. You said that it was in somewhat disrepair, kind of describe it
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