How to Get Started in Real Estate Investing with Amy Pfeffer
Recorded in Southeast Michigan. Lightly edited for clarity and flow.
Tim: So you want to be a real estate investor? There are a lot of moving parts. I’ve asked my friend Amy Pfeffer to share how she and her family built a small but mighty portfolio here in Southeast Michigan.
Tim: Amy, thanks for joining me.
Amy: Thanks for having me—happy to be here!
Why Amy Started Investing
Tim: Most people invest to build wealth—through appreciation or cash flow. What pushed you into it?
Amy: A few things. I’m in recruiting, and early in my career I kept meeting candidates who’d been at one company for twenty years and—boom—something changed and the job was gone. Watching people’s savings evaporate scared me. I wanted a backup plan and some cash flow that didn’t depend on my W-2. Plus, I love real estate—especially before-and-afters. That combo of safety net + passion made it feel urgent to start.
The Strategy: BRRRR (Buy, Rehab, Rent, Refinance, Repeat)
Tim: You use the BRRRR strategy, right?
Amy: Yep—Buy, Rehab, Rent, Refinance, Repeat. We buy, renovate, place a tenant, then refinance to pull our capital back out and recycle it into the next deal.
Tim: How many doors now?
Amy: Seven rentals in Southeast Michigan.
Where to Invest: Nearby, With Momentum
Host: How did you choose your areas?
Tim: I wanted places I know well so I could be hands-on. Convenience keeps you consistent. I also look for neighborhood momentum—public or private investment, headlines, “buzz.” For example, Detroit’s Fitzgerald neighborhood has seen meaningful institutional attention. That kind of energy supports long-term appreciation, which is our primary wealth lever; we let the cash flow recycle inside the portfolio.
Self-Managing vs. Property Management
Tim: You tried to self-manage at first?
Amy: We did. It “worked,” but it was constant: chasing rent, coordinating plumbers, late-night calls. We realized we’d never scale that way. Hiring a property manager was a turning point and I’d never go back.
What I look for in a PM:
Investor mindset (advises on neighborhoods, rents, growth)
Strong tenant experience (I never want to be the stereotypical landlord)
Reliable maintenance and transparent reporting
Your Core Team (a.k.a. Your Safety Net)
Amy: Beyond a property manager:
General Contractor (+ trades): Honest scope, durable finishes, smart cost/benefit calls.
Real Estate Agent/Team: Finds the right properties and numbers. (You’ve been huge for us!)
CPA: Don’t DIY your taxes when you’re making money.
Attorney: For LLCs, leases, and in case you ever face evictions or other legal issues.
Lenders: This can make or break you.
Lending Lessons (and Why They Matter)
Amy: We started with conventional (Fannie/Freddie) but you hit limits and odd restrictions even when your properties cash flow. We moved to private lenders. Be choosy—one dragged a loan out so long it cost us real money.
Timing matters: many lenders make you wait six months before a refinance; our current lender allows it at three, which lets us move faster.
Long-Term vs. Short-Term Rentals
Tim: Thoughts on Airbnbs/VRBOs?
Amy: We’ve done long-term only. I want to be as hands-off as possible once a unit is stabilized. Short-term can cash flow more, but:
Regulations can change overnight.
Wear/tear and turnover risk are higher.
It doesn’t fit my markets or my lifestyle.
Curiosity corner: I’m intrigued by insurance-placement stays (medium-term) when families are displaced—better underwriting and pay. Haven’t done it yet, but it’s interesting.
What We Buy (and Why)
Amy: Mostly single-family homes. In my markets they appreciate better than multis (which can win more on cash flow). We also like homes under ~1,500 sq. ft.—repairs are typically more manageable.
We do have one gorgeous ~2,000 sq. ft. Detroit home (leaded glass, tons of character) that’s quadrupled in value—but the boiler failure was… intense. Great to own one “jewel,” but a whole portfolio of high-complexity systems can nuke a year’s profit if they fail together.
Getting Started: Is It Right for You?
Amy: Ask yourself:
Do you have an appetite for risk and some hands-on work?
Will you build a team and lead it?
Can you research neighborhoods (day/night drives, activity, safety, local news)?
Are you comfortable with math? (Rents, repairs, insurance, taxes, debt, DSCR—all of it.)
You’ll analyze 20–30 deals to find a good one. Fall in love with numbers, not houses. Be ready to walk away when a pretty property doesn’t pencil.
Sourcing & Vetting Deals
Amy: I constantly:
Track listings (even when not buying) to learn price/rent trends.
Drive target blocks at different times of day.
Stay on local news about investments, crime, new businesses.
Lean on my agent and PM for ground-truth rents and repair reality.
How We Funded the First Deals (Monopoly Style)
Amy: First deal (2013) was 20% down on a 15-year mortgage—great rate, but hard to scale.
The unlock was our primary residence:
Bought in 2017 at a great price, did a major rehab (built our contractor bench).
Opened a HELOC on our appreciated equity.
Bought houses cash with the HELOC, funded rehabs, then cash-out refi and paid the HELOC back.
Repeat.
It’s not a pile of cash in a bank—it’s an untapped line of credit we put to work.
The Not-So-Fun Stuff (a few “horror” stories)
Theft during vacancy: In Detroit, we had all new appliances stolen—twice—even after adding cameras. Lesson: in certain areas, consider installing appliances at move-in or removing them between showings; layer security.
Tenant turn gone sideways: A long-time tenant had life changes, stopped paying, and the end was rocky. With our PM, we navigated it fairly. Expect to handle tenant issues over time.
Frozen-pipe scare: Keys got delayed in the mail, heat was off in sub-freezing weather; we scrambled with space heaters. Learn your utility landlord transfer options so service won’t lapse.
“Passive” isn’t passive: I’ve hauled a stacked washer/dryer through snow in business-casual on my lunch break. You will get your hands dirty—even with a great team.
Parting Advice
Amy: Just do it. People ask me about investing for years and never start. If it’s not for you, sell the house and move on. But you won’t learn what you need to learn until you’re in it.
Preparation + team + clear numbers = when the opportunity shows up, you’re ready.
Want to Talk It Through?
If you’re considering real estate investing in Southeast Michigan and want help running the numbers, vetting neighborhoods, or assembling your team, we’re happy to chat. Call, text, or email—we’ll help you decide if investing fits your goals and risk tolerance.
