103: Residential Multi-Family House Hacking with Devin Moreno

Devin Moreno started with nothing but a stable job living paycheck-to-paycheck and $500 to his name.
Despite coming from a family of investors (stocks and other businesses), it’s a surprise Devin didn’t
actually make the jump to real estate sooner than he did. (And this was one of Devin’s motivations to
succeed as much as he has so quickly.)

So, coming onto the scene a little later than many Millennials investors, Devin buckled down and learned
as much as he could about the real estate industry in six months. He knew he struggled with analysis
paralysis so the six month deadline was crucial for him to get started.

And just like that, Devin had purchased his very first House Hack using a VA Loan, meaning he was able
to purchase the property for 0% down. Since then, he has used this first property as a launching point into
the small multi-family space using a combination of conventional and private financing to continue
leveraging his investments.

Up to date, Devin is closing on his first triplex which will be a BRRRR investment purchase. Devin knows
his goals have definitely evolved since he began, and thinks they will continue to change going forward.
Right now, the important thing for him is to ensure he continues to invest in properties that excite him and
challenge his comfort levels.

Our takeaways with our conversation with Devin:

1) Run your business like a business. When Devin
purchased his first privately funded deal, he confessed to us that asking people for money was not
something he was accustomed to (as we’re sure with many investors starting out). That’s okay. As per
Devin’s case, the people he was looking to get funding from were people who also didn’t know much
about private financing. So as he learned more and more about deal structure, Devin kept an open line of
communication with them and explained to his lenders exactly how the deal was going to work. Along with
explanations and his competence, Devin proved he was trustworthy by displaying the business systems
he had in place. Lastly, he didn’t take too much money for anyone to handle. Each person who funded his
deal lent no more than $10,000.

2) Give yourself deadlines. All too much, we see many eager investors cave into fear and fall prey to
analysis paralysis. By giving yourself a deadline (and an honest effort), you will be able to hold yourself
accountable and examine your “readiness” from an outside perspective. The goal isn’t to learn and/or
analyze everything for your first deal. If that’s the case, you’ll never be ready. The goal is to learn and/or
analyze enough to do your first deal. Remember, even if your first deal goes completely wrong, you will still have learned more from those mistakes than you would have had you not taken any action in the first
place.

3) Read the fine print. One of the many reasons real estate is such a great investment vehicle are the
legal loopholes available to investors’ disposal. However, because many loopholes are popular (and
maybe even considered common practice), just one overlook of text or just one uneducated assumption
can lead you to a plethora of legal trouble. Have competent advisors and be competent yourself. Make
sure your business practices are within the confines of the law and protect yourself and your assets.
When it comes to asset protection, “Better safe than sorry” is the motto.

4) Learning your market. You don’t always need to invest where you live (not at all), but the real estate
industry and real estate markets are very niche. If you want to be successful, it would suit you well to
learn where you are putting your money into. There are many ways to learn a new market. You can
assemble a team who knows the area, talk to other investors who invest in the area of interest, or spend
time traveling around the area for yourself. For Devin, the third option was the way for him. He invests in
Baltimore where the market tends to be “block-for-block,” meaning one street over from another can be a
totally different market in and of itself. And that’s okay. Regardless of how you learn your market, with
enough due diligence and practice, you will learn your market as well as many others along the way (just
don’t fall into analysis paralysis!). Devin knew nothing about Baltimore starting out, but now he can
distinguish one “block” from another very easily.
If David could go back and talk to his 16 year old self, he’d tell him, “The biggest disappointment is
starting this so late. At minimum, paycheck-to-paycheck will not do you any favors.”
An unexpected benefit of real estate investing, Devin said, was the confidence boost it gives you knowing
you are a homeowner, as well as a business owner.
A piece of advice Devin would tell his friends looking to get started in real estate would be to “House
Hack—even if that is [your] only purchase ever.”
Devin recommends using YouTube to learn and consume all things real estate. Subscribe to Devin’s
channel at Devin Moreno Investing!
Devin recommends reading Landlording on Autopilot by Mike Butler & Real Estate Investing Gone Bad by
Phil Pustejovsky to help you get started on your real estate education.

If you’d like to get in touch with Devin, contact him at: [email protected]