403: House Hacking Blunder to $2.7 Million in Small Multifamily by Doing THIS w/Sean Reischel

Real Estate Rookie

BiggerPockets

Business, Education, How To, Entrepreneurship, Investing

4.7 • 1.8K Ratings

🗓️ 8 May 2024

⏱️ 49 minutes

🔗️ Recording | iTunes | RSS

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Summary

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 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email: advertise@biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is real estate rookie episode 403.
0:05.0	House hacks are a great way to share your space and to cut living expenses,
0:10.0	but can also be a recipe for disaster when your dinner plans don't go the way you
0:14.9	wanted and affect your tenants. My name is Ashley Kerr and welcome to the
0:20.3	real estate rookie podcast where three times a week we give you the motivation,
0:25.5	inspiration, and stories you need to hear to get started in real estate investing.
0:30.1	Today we have Sean Rischal. Sean and his wife Perry have grown a portfolio of five small multifamily units to 2.7 million in assets
0:40.7	across two states including Utah and Kentucky by
0:44.1	creatively finding ways to use their properties.
0:47.6	He did experience some strain on his first house hack deal,
0:52.2	and we will hear how that turned out for him as a first time
0:55.2	landlord. Before we get into today's show if you want to be on this episode and
1:01.3	tell me your horror story go to bigger pockets.com
1:04.1	slash reply. Sean welcome to the show thank you so much for joining us today
1:09.7	thanks Ashley great to be here. Yeah so kind of tell us a little bit about this first property.
1:17.0	You moved to a new city and kind of give us a little backstory
1:20.4	of where you were in your life at that time.
1:22.2	Sure. So I was a your life at that time? Sure.
1:23.0	So I was a civil engineer at the time and I was living in New Jersey.
1:26.0	I moved to Salt Lake City around like March 1st of 2020.
1:30.0	And we were in the office for two weeks and then everybody went home to work remotely because COVID started.
1:37.0	And in the beginning I realized that my 40 hour per week job I could essentially do in like 20 hours per week. So I was like, what do I do with all this time? And I started playing video games. I was playing like call of duty, counter strike shooting games. And then I looked in the mirror after a month.
	...

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