On the BiggerPockets Real Estate Podcast, co-hosts David Greene and Rob Abasolo interview real estate investors and entrepreneurs about successes, failures, and hard-earned lessons. Through in-depth conversations, 1-on-1 listener coaching calls, and news analysis, you’ll get a breakdown of real strategies that work for different niches and experience levels. Tune into the #1 real estate investing podcast every Monday, Wednesday, and Friday.
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episode 456: 126 Multi-Family Units On a Military Salary with Erika Sleger
Anything over 100 units tends to scare many investors, especially rookie investors. How do you even get to 100 units when it’s already challenging enough to get one? That answer is simple: stack them slowly over time. That’s exactly what today’s guest, Erika Sleger, did. Erika heard about house hacking from a lecture in college, so once she graduated she decided to buy a fourplex, live in one unit, and rent out the others.
She learnt some valuable skills from that first fourplex and later sold it for a nice profit, 1031 exchanged it into an 18 unit, and started collecting rent. From there, she used her equity on the 18 unit to buy a 64 unit. Another 16 units here, some more units there, and before she knew it Erika had over 120 rental units. She acquired all of these properties through 1031 exchanges and pulling cash out via refinances for down payments.
Managing over 100 units isn’t easy, it took Erika a while to find management that worked, and she was still managing her managers. Even with the best due diligence, Erika talks through the challenges of filling and managing so many units. That’s why Erika sold her multifamily properties and moved her money into commercial real estate.
Now she owns “amazon-proof” commercial spaces for coffee shops, a daycare center, and even a car maintenance shop. These leases are triple net, and give her the flexibility to move wherever she wants in the world, without having to over-manage a property manager. This is what “the stack” done correctly looks like!
In This Episode We Cover:
- House hacking to secure your first rental property
- Using 1031 exchanges to acquire more properties with no capital gains taxes
- Buying LARGE multifamily properties and setting up management
- The importance of due diligence when buying multifamily and commercial
- Triple net leases and the benefits of commercial buildings
- And SO much more!
Links from the Show
- BiggerPockets Forums
- Tony Robbins
- Walgreens
- CVS
- Starbucks
- Amazon
- BiggerPockets Podcast 253: Recession-Resistant Investing & the Benefits of Buying Shopping Centers with David Puchi
- BiggerPockets Podcast 363: How to Work (Way) Less but Accomplish (Way) More in 2020 with Michael Hyatt
Check the full show notes here: http://biggerpockets.com/show456
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