456: 126 Multi-Family Units On a Military Salary with Erika Sleger

BiggerPockets Real Estate Podcast

BiggerPockets

Investing, Education, Business

4.8 • 16.6K Ratings

🗓️ 1 April 2021

⏱️ 57 minutes

🔗️ Recording | iTunes | RSS

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Summary

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 Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is the bigger pockets podcast show 456.
0:04.0	I wasn't looking for a job.
0:07.1	I am looking for an investment.
0:08.4	I have a full time job.
0:10.1	And so this was just supposed to be something that I was investing in and it got to be too
0:14.1	much trying to figure out where these legitimate expenses, because expenses kept going up.
0:19.5	And I didn't know what they were for.
0:21.2	A lot of them were really vague in the program.
0:23.2	And I just didn't want to be calling them constantly, especially out of the last several years.
0:28.8	I've lived overseas, you know, a decent amount of it.
0:32.0	And so I was just, since I didn't want to keep doing that, I wanted something that I didn't
0:36.4	have to have management on.
0:37.5	And so even though it turns on commercial properties a little bit lower, it was the right
0:41.9	thing for me.
0:42.9	You're listening to bigger pockets radio, simplifying real estate for investors large and small.
0:49.6	If you're here looking to learn about real estate investing, without all the hype, you're in
0:53.7	the right place.
0:55.5	Stay tuned and be sure to join the millions of others who have benefited from bigger pockets.com.
1:01.4	Your home for real estate investing online.
1:03.9	Well, it's going on everyone.
1:05.6	It's Bren and Turner host of the bigger pockets podcast here with my co-host one final time.
1:10.8	Mr. David, the shredder green.
	...

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