Buying small multifamily properties is an easy way to build a portfolio, and with a little creativity, you don’t even need a ton of money! Despite a rocky start to his real estate journey, today’s guest was able to take advantage of a HUGE investing opportunity and buy several properties in very little time.
Welcome back to the Real Estate Rookie podcast! Like many new investors, Sean Reischel started out using the house hacking strategy. Unfortunately, things didn’t go to plan, as an incident involving spaghetti and his garbage disposal ultimately drove a tenant out of his property. However, Sean was able to turn this bad situation into a golden opportunity by renovating the unit, raising rents, and placing a new tenant quickly. Fast forward only a few years, and Sean and his wife own five small multifamily properties worth a combined $2.7 million!
Whether you need help with financing or partnerships, this episode is loaded with practical tips that even the greenest investor can use. Sean shares how he teams up with other investors to buy properties faster, as well as how rehabbing and refinancing properties has increased his buying power. He even dives into his main markets—Salt Lake City, Utah and Louisville, Kentucky—and the investing strategies he deploys in these areas!
In This Episode We Cover
How Sean turned a house hacking “hiccup” into $2.7 million in small multifamily
How to analyze real estate deals using the one-percent rule
What to look for when choosing a new market to invest in
Using the power of refinancing to buy MORE rental properties
How to scale your real estate portfolio faster with partnerships
And So Much More!
(00:00) Intro
(01:11) Sean’s FIRST House Hack
(06:55) The “Spaghetti” Fiasco
(12:49) Renovating the Damaged Unit
(21:33) The Louisville, KY Market
(27:22) Finding & Funding Deals
(33:26) Changing Roles & the Investor “Pitch”
(38:16) Connect with Sean!
Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-403
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185: 11 Doors and Returning to Real Estate After an 8-Year Hiatus
184: Rookie Reply: Should You Rent to a Bankrupt Tenant?
183: Ditching the "American Dream" & Finding Ways to Live a Wealthier Life
182: Rookie Reply: Rent Out Your Primary Residence or Sell and Buy Rentals?
181: 9 Doors While Deployed and Investing from Afghanistan, Iraq, and Africa
180: Rookie Reply: How to Buy Your First Rental With No (or Low) Money Down
179: From Freak to Financially Independent & Beating the Average Joe to $1M
178: Rookie Reply: Why Real Estate Debt Isn’t So Scary
177: Gang Houses, Animals, and 17 Units by Capitalizing on Properties People Avoid
176: Rookie Reply: Tony’s Troublesome Shreveport Deal ($29k LOSS)
175: Changing Their Family's Fate by Building a 600+ Unit Portfolio (At Age 20!)
174: Rookie Reply: How to Structure a Real Estate Partnership
173: $1M in Real Estate in Just 1 Year (and How You Can Do It Too!)
172: Understand ANYONE Around You (Including Yourself!) Using One Simple Tool w/Nick Baumgart
171: The 2022 Housing Market Explained: Is Now a Good Time to Buy? w/Dave Meyer
170: Rookie Reply: ARM vs. Fixed-Rate Mortgages (Which Is Better For Cash Flow?)
169: From Flight Nurse to Financially Fruitful Landlord with 7 Units (in 2 Years!) w/Stacey Stegenga
168: Rookie Reply: How Much Cash Flow Do You Need to Quit Your W2? w/Daryl Clinch
167: 7 Doors in 11 Months While Investing Out-of-State w/ Hashim Ismail
166: Finding Contractors, Renovation Red Flags, and Estimating Rehab Costs (Part 2) w/ James Dainard
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