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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163: Using Short-Term Rentals & House Hacks to Become Financially Free in 2 Years w/ Andrew Bresee
162: Rookie Reply: Permitting Problems and Finding Hard Money Lenders
161: Using Calculated Risk to Acquire 17 Doors In Under a Year (at Age 24!) w/ Grace Gudenkauf
160: Rookie Reply: How to Borrow Money for Down Payments (and Pay it Back!)
159: Building an Out-of-State Empire by Using the Right Type of Real Estate Agent w/ Sarah Weaver
158: Rookie Reply: The Best Career Moves for an Aspiring Real Estate Investor
157: The 4 Keys to Perfect Property Management & Live in Flipping as an Army Man w/ Adam Widder
156: Rookie Reply: What’s The BEST Vacation Rental Loan?
155: Progress Over Perfection: Building Wealth w/o Any "Home Run" Properties w/ Ali Garced
154: Rookie Reply: Is Investing with Family Members a Mistake?
153: 20 Deals in a Year as a Professional Basketball Player w/ Terry Harris
152: Rookie Reply: How to Fund Real Estate Deals (and Scale Bigger!)
151: 28 Units as a Full-Time Surgeon and Escaping the “Golden Handcuffs” w/ Daniel Shin
150: Rookie Reply: Which Rent Numbers Can You Trust When Analyzing a Deal?
149: 55-Unit "Mobile Home Queen" and The Nightmare 17-Month Rehab w/Emily Fackler
148: Rookie Reply: Should You Buy a Rental Before Buying Your Primary?
147: 13 Flips as a Full-Time Flight Mechanic and Part-Time Lender w/ Anthony Michael
146: Rookie Reply: How Tony Robinson Lost His Job (and Found His Freedom)
145: Leaving the 9-5 Office Life to Start a Mother-Daughter Flipping Business
144: Rookie Reply: 6 Short-Term Rental Tips from Tony J. Robinson
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