How to Build Passive Income Through Remote Real Estate Investing

How to Escape the 9-to-5 Grind and Build Location Independence Through Real Estate Investing

Episode Summary

In this powerful episode of The Real Estate Investing Club, host Gabe Petersen sits down with Ryan Mellon from Digital Nomad Nation to uncover the exact strategies he used to transition from working 14-hour days in restaurants and warehouses to achieving complete location independence through real estate. Ryan shares his unconventional journey of quitting his jobs, traveling in an RV for a year, and building a rental portfolio that now funds his travels around the world—all while working remotely.

Key Takeaways:

You can start investing in real estate remotely, even while traveling full-time
The 70% ARV formula still works for finding profitable deals in today’s market
Building passive income through rentals creates true financial freedom
Consistency in acquisitions beats looking for the “perfect” deal
Location independence is achievable through strategic real estate investing

Questions Answered in This Episode:

How do you transition from working multiple jobs to full-time real estate investing?
What’s the best strategy for finding and analyzing REO properties remotely?
Can you really manage renovations and flips while traveling?
How much passive income do you need to achieve location independence?
What markets offer the best opportunities for remote real estate investors?

How Can Someone Working 14-Hour Days Break Into Real Estate Investing Without Quitting Their Job First?

The path from exhausting manual labor to real estate freedom doesn’t always require immediate income replacement—sometimes it requires strategic planning and calculated risk. As Ryan explains about his journey: “I was working in the restaurant business. I was working in a warehouse in the evening and I only got Sundays off and it was just brutal.”

The breakthrough came not from immediately replacing his income, but from saving strategically and partnering with experienced investors. Ryan’s approach was unconventional but effective. He saved enough money to cover one year of living expenses, then took the leap. “I had enough money in savings, quit my jobs. I did own a house at the time… I rented it out and then we went on this road trip,” Ryan shares.

For those currently working demanding jobs, the lesson is clear: you don’t need to wait until real estate replaces your income. Instead, focus on these actionable steps:

Build Your Knowledge Base While Working

Get your real estate license during off-hours to understand the market
Partner with successful investors who can mentor you
Start analyzing deals even before you have capital to invest

Create Your Safety Net

Save aggressively for 6-12 months of living expenses
Consider house hacking your primary residence for immediate cash flow
Build relationships with other investors who might partner on deals

Start Small and Scale

Begin with wholesaling or bird-dogging to learn the business
Use your first property as a rental when you move
Leverage partnerships to access deals beyond your current capital

The key insight from Ryan’s experience is timing. As Gabe notes in the episode: “Once your back’s against the wall, you figure it out. I don’t know if I would necessarily recommend people to do it that way because it is stressful. But sometimes, you know, you get to a point in life… you just need to change.”

What’s the Most Effective Strategy for Finding and Analyzing Bank-Owned Properties and Foreclosures?

Remote real estate investing requires systems and proven formulas for success. Ryan and his partner developed a systematic approach to acquiring REO properties and foreclosures that generated consistent results, even while he was traveling in an RV across the country.

The strategy centers on volume and efficiency rather than perfection. “We were just like sending out like tons of contracts to foreclosures and bank REOs… This is like 2018. There were a ton of those,” Ryan explains. Their systematic approach included several key components that any investor can replicate today.

The 70% Rule for Quick Analysis Ryan’s team used a simple but effective formula: offer 70% of After Repair Value (ARV) minus estimated repairs. This quick calculation method allowed them to analyze dozens of properties rapidly without getting bogged down in complex spreadsheets. “We would do 70% of ARV minus repairs. We would kind of calculate the ARVs and we would just blast out these contracts,” he shares.

Leveraging Technology for Remote Investing The team’s remote system included:

Video walkthroughs for remote property assessment
Pre-signed blank contracts for rapid offers
Systematic tracking through HUD home store and MLS
Batch processing of offers to maximize efficiency

The Power of Volume Over Perfection Rather than analyzing each property to death, Ryan’s approach focused on making numerous offers quickly. “My client wouldn’t even look at it until it came on… Like it’s under contract. Of course we had inspection period,” he notes. This strategy recognizes that in competitive markets, speed often beats perfection.

Key Sources for Finding Deals:

HUD home store for government-owned properties
MLS listings for bank-owned properties
Direct outreach to listing agents specializing in REOs
Foreclosure auction sites for below-market opportunities

The beauty of this system is its scalability. Once you understand the formula and have your contracts ready, you can apply this strategy to any market, from anywhere in the world. Ryan proved this by successfully executing deals while traveling across the United States in an RV.

How Do You Manage Renovations and Property Flips While Traveling or Living Abroad?

Managing physical real estate projects from thousands of miles away might seem impossible, but Ryan developed a systematic approach that allowed him to flip houses and manage renovations while traveling internationally for six months each year. His success proves that location independence and active real estate investing aren’t mutually exclusive.

“I slowly was traveling six months out of the year and when I was home in the summertime, I was buying houses, flipping, renovating, renting them, and then going out traveling again,” Ryan explains. This seasonal approach created a sustainable rhythm that balanced hands-on work with location freedom.

Building Your Remote Renovation Team The foundation of successful remote renovations is a trustworthy team. Ryan emphasizes the importance of relationships: “Word of mouth, everyone knows I buy houses, all my contractors. And so like I get just referrals from people all the time.” These relationships become your eyes and ears on the ground.

Essential team members for remote renovations include:

A reliable general contractor who can manage subcontractors
A local real estate agent familiar with investment properties
Property managers for ongoing tenant relations
Home inspectors for detailed property assessments
Handymen for minor repairs and maintenance

Technology Tools for Remote Management Modern technology makes remote property management more feasible than ever:

Video calling for virtual walkthroughs and progress checks
Project management software for tracking renovation timelines
Digital payment systems for contractor payments
Cloud storage for documents, receipts, and contracts
Security cameras for 24/7 property monitoring

Creating Systems for Success Ryan’s approach involves batching activities during specific seasons. He dedicates summer months to intensive property work—buying, renovating, and setting up systems—then travels during the other six months while properties generate passive income. This strategy allows for both hands-on involvement and extended travel periods.

The Inspection Period Safety Net One crucial element Ryan mentions is always including inspection periods in contracts: “Of course we had inspection period.” This gives you time to thoroughly evaluate properties, get contractor estimates, and ensure the numbers work—all of which can be done remotely with the right team in place.

The lesson here is clear: successful remote real estate investing isn’t about being physically present for every decision. It’s about building systems, trusting qualified professionals, and using technology to stay connected to your investments from anywhere in the world.

How Much Passive Income Do You Really Need to Achieve Complete Location Independence?

The magic number for location independence varies by individual, but Ryan’s journey provides a realistic framework for understanding what it takes to fund a traveling lifestyle through real estate. After six years of consistent investing, he built a portfolio that covers all his monthly expenses while traveling the world.

“Building my portfolio over the years and renovating them and getting that equity and refinancing them just a little at a time really grew my cashflow,” Ryan shares. “It’s taking care of all of my monthly costs. And so… I don’t have to worry about working.”

The Real Numbers Behind Location Independence While Ryan doesn’t share exact figures, the strategy is clear: build enough monthly passive income to cover:

Basic living expenses (food, accommodation, transportation)
Travel costs (flights, visas, travel insurance)
Property management and maintenance reserves
Emergency fund for unexpected expenses
Business expenses for continued growth

The Power of Geographic Arbitrage One advantage of the digital nomad lifestyle is geographic arbitrage—earning in US dollars while spending in countries with lower costs of living. This strategy can effectively double or triple your purchasing power, meaning you might need less passive income than you think.

Building Passive Income Strategically Ryan’s approach focused on long-term rentals in stable markets. His choice of South Hampton Roads, Virginia, offers several advantages:

Strong military presence providing consistent rental demand
Stable property values with steady appreciation
Professional property management infrastructure
Predictable rental rates and low vacancy rates

As Ryan notes about his market choice: “We got a lot of military. It’s a good place.” Military markets often provide stable, long-term tenants with housing allowances, reducing vacancy risk and payment issues.

The Compound Effect of Consistency Rather than chasing one massive deal, Ryan emphasizes consistency: “I would say just like consistently building that rental, like more and more rentals until I was comfortable and had the cash flow where I could do what I’m doing now is the highlight for me. The consistency.”

This approach might mean:

Acquiring 1-2 properties per year
Focusing on cash flow over appreciation
Reinvesting profits to accelerate portfolio growth
Using the BRRRR strategy to recycle capital

The key takeaway is that location independence through real estate isn’t about hitting a home run—it’s about consistently hitting singles and doubles until your passive income exceeds your lifestyle costs.

What Single Market Offers the Best Opportunities for Remote Real Estate Investors Today?

While many investors chase multiple markets, Ryan’s focused approach on South Hampton Roads, Virginia, demonstrates the power of market mastery. “I only invest in my home state, which is South Hampton Roads, Virginia. And it’s a great place to invest,” he emphasizes.

Why Military Markets Create Stability South Hampton Roads hosts multiple military installations including Naval Station Norfolk, the world’s largest naval base. This creates unique advantages for real estate investors:

Military markets typically offer:

Guaranteed housing allowances (BAH) ensuring rent payment
Frequent relocations creating consistent rental demand
Professional tenants with stable employment
Lower crime rates near military installations
Economic stability regardless of market cycles

Characteristics of Ideal Remote Investment Markets Based on Ryan’s success, remote investors should look for markets with:

Population stability or growth trends
Diverse employment base beyond single industries
Landlord-friendly regulations and eviction laws
Professional property management companies
Strong cash flow relative to purchase prices
Below national average for natural disaster risks

The Advantage of Home Market Knowledge Ryan’s decision to focus exclusively on his home market provides several benefits:

Deep understanding of neighborhoods and values
Established network of contractors and professionals
Ability to visit properties during scheduled trips home
Knowledge of local regulations and market dynamics
Existing relationships with agents and sellers

Building Your Market Expertise For investors considering remote markets, Ryan’s approach suggests:

Start with one market and master it completely
Build relationships before making investments
Understand the economic drivers of your chosen market
Know the tenant demographics and preferences
Track market metrics consistently over time

As Ryan learned through experience, trying to do too much can backfire. His story about the six-unit building illustrates this: “I had a six unit apartment building that took me five years to buy… I really was a little over my head on the amount of renovation that needed to be done.”

The lesson? Focus on markets you understand, where you have strong teams, and where the fundamentals support long-term success.

What’s the Biggest Mistake New Investors Make When Trying to Build Passive Income?

When asked about his biggest real estate regret, Ryan’s answer was immediate and echoes throughout the investment community: “Start sooner. I could have been a lot farther along a lot quicker if I started sooner.”

This universal regret among successful investors reveals a crucial truth about real estate investing—the biggest mistake isn’t making a bad deal; it’s not making any deals at all. As Gabe emphasizes: “80 to 90% of the guests that we have on this show wish they got started sooner. So this is your calling, go out there and just get a deal done. Doesn’t have to be anything spectacular.”

Analysis Paralysis: The Success Killer New investors often spend months or years:

Reading every real estate book available
Attending countless seminars and webinars
Creating elaborate business plans
Waiting for the “perfect” market conditions
Seeking the ideal first deal

Meanwhile, investors like Ryan are taking action, learning from experience, and building wealth through imperfect action.

The Power of Imperfect Action Ryan’s story about his six-unit building perfectly illustrates this principle. Despite five years of follow-up and negotiation, the project was beyond his capabilities. But instead of viewing it as failure, he pivoted: “I sold it for about a year and a half later for about 300 grand more than I paid for it… it was also the biggest deal I’ve ever done without any renovation.”

Key lessons from this experience:

Not every deal will go as planned
Pivoting isn’t failure—it’s smart business
Sometimes the best education comes from challenging deals
Action creates opportunities that planning never will

Starting Small Beats Not Starting Ryan’s journey began with simple steps:

Getting his real estate license while working two jobs
Partnering with an experienced investor
Helping find deals before having capital to invest
Converting his primary residence to a rental

The Compound Cost of Waiting Every year you delay getting started costs you:

Appreciation on properties you could have owned
Cash flow that could be reinvested
Experience and market knowledge
Relationships with other investors
Tax benefits from real estate ownership

The message is clear: your first deal doesn’t need to be perfect. As Ryan’s journey shows, success in real estate comes from starting where you are, using what you have, and learning as you go.

How Can Real Estate Investors Transition from Active Income to Truly Passive Income?

The evolution from active real estate work to passive income requires intentional strategy and system building. Ryan’s transition from working two jobs to traveling six months per year while his properties generate income provides a roadmap for this transformation.

“I slowly was traveling six months out of the year and when I was home in the summertime, I was buying houses, flipping, renovating, renting them, and then going out traveling again,” Ryan explains. This gradual transition allowed him to build systems while maintaining income.

The Three Phases of Real Estate Income Evolution

Phase 1: Active Deal Making Initially, Ryan focused on active strategies requiring direct involvement:

Wholesaling contracts to other investors
Bird-dogging deals for experienced flippers
Acting as a real estate agent for commissions
Hands-on renovation management

Phase 2: Hybrid Approach As his portfolio grew, Ryan developed a seasonal strategy:

Summer months: Intensive property acquisition and renovation
Winter months: Travel while properties generate income
Remote deal analysis and contract negotiation
Building reliable team management systems

Phase 3: True Passive Income Today, Ryan’s income is genuinely passive:

Professional property management handles daily operations
Established contractor relationships manage repairs
Referral networks generate new opportunities
Systems run without constant oversight

Critical Systems for Passive Income Ryan’s success relies on several key systems:

Property Management: “Everyone knows I buy houses, all my contractors. And so like I get just referrals from people all the time.” This network operates independently, bringing deals and managing properties without Ryan’s daily involvement.

Financial Systems: Regular refinancing to pull out equity while maintaining cash flow. “Renovating them and getting that equity and refinancing them just a little at a time really grew my cashflow.”

Geographic Strategy: Focusing on one market (South Hampton Roads) simplifies management and builds deep expertise that pays dividends over time.

The Freedom to Pursue Passion With passive income secured, Ryan now focuses on helping others: “I just came out with a masterclass that helps people figure out how to get remote work or become a freelancer. I also do one-on-one coaching with people if they want specific help in their business to create freedom.”

This final phase—where real estate income funds passion projects—represents true financial freedom. As Ryan notes: “Helping other people out there get into that lifestyle and becoming location independent is what I’m passionate about and so that’s why I’m doing what I’m doing now.”

The journey from active to passive isn’t overnight, but with consistent action, strategic system building, and patience, real estate can provide the foundation for complete lifestyle design.

Take Your Next Step Toward Real Estate Freedom

Ryan’s journey from restaurant worker to location-independent investor proves that transformation is possible with the right strategies and consistent action. Whether you’re working multiple jobs or already investing, the path to freedom through real estate is clearer than ever.

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