Ep. 146: From House Hack to Commercial Multifamily with Jay-R Domantay
Multifamily Insights
English - December 10, 2019 13:27 - 31 minutes - 28.8 MB - ★★★★★ - 207 ratingsInvesting Business Marketing apartments cashflow apartmentinvesting buyingapartmentbuildings buyingrealestate learningtobuyrealestate marketing multifamily realestateinvesting Homepage Download Apple Podcasts Google Podcasts Overcast Castro Pocket Casts RSS feed
A house-hack is a great way to get started in real estate. You live in one unit and rent out the others, so the residents pay the mortgage and expenses. Jay-R Domantay used this strategy to get his first deal and then invested in a couple of duplexes before making the leap to commercial real estate.
Born and raised in the Philippines, Jay-R moved to Chicago in 2007 and has used hustle, grit, and ingenuity to build a 27-unit portfolio. Even more impressive, he’s done it all while working a full-time job and another part-time gig. He is not a licensed CPA and real estate broker, helping others get started in real estate investing. We talk about his steps to go from house-hack to commercial real estate, lessons learned along the way, and what's next on his investing journey.
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Key Insights
Raised in the Philippines and moved to Chicago in 2007 at 17 years old Did a house-hack on a new 2-flat in Berwyn, IL With an FHA loan, he only brought $7,500 to the closing table The rental income covered the majority of the mortgage and utilities Acquired a 2-flat foreclosure in Cicero for $80,000 Needed 25% down, but did not have all the capital Took a loan on his 401k to get the remaining capital Made the leap to commercial multifamily apartments Tips for seller financing: build rapport, demonstrate capabilities, establish trust, and be easy to work with The lending process was easier for commercial properties than the 2-4 unit residential units Looking to do a passive deal to learn more about syndication Seeking 8-24 units for his next active investment On the Westside of Chicago, 2-4 units are still going strong Cash flow, cash reserves, and long-term financing
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Bull’s Eye Tips:
Apparent Failure:
Not having enough cash reserves, had to tap into W2 income to cover costs
Most Recommended Book:
Eat That Frog by Brian Tracy
Most Recommended Digital/Mobile Resource:
Google Docs and Dropbox
Daily Habit:
Miracle Morning Routine
Wish I Knew Starting Out:
The importance of cash reserves
Advice to College Student:
Consider the cost of college before you take out a loan
Advice to Ignore:
People who have not done what you want to do
Current Curiosity:
AirBNB
Best Place to Grab a Bite:
Lola Tining
Connect with Jay-R:
Email: [email protected]
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