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- Making Multifamily Money - Dec 6th 2023
Making Multifamily Money - Dec 6th 2023
Steven Nguyen
December 06, 2023
Real Estate Updates
Dealing with my stabilized portfolio is much easier than a huge value add portfolio. Most of my units are rented out and newly renovated so capital expenditures are minimal. During renovations, I would be talking to my property managers multiple times a week. Now it is crickets! I was used to putting out multiple fires a week - more stress, more time, more headache!
The first 2.5 years were complete chaos and now I can sit back and enjoy the cash flow. Every year, the rents will organically go up. If I raise rents by $25/month on all 50 units, that will give me an additional $1,250/month or $15,000/year in NET CASH FLOW. Assuming a 9 CAP since interest rates are higher, that would give me an additional $167,000 in forced appreciation.
My weekly time commitment allocated towards real estate dropped significantly. I talk to my property managers once a month to go over the monthly profit and loss statements. I will cross reference the P&L against my bank account.
Real estate gets easier and easier over time. The hard part is buying the 1st deal then executing the value add plan. If your 1st deal is a home run, it can replace your W-2 income (like my 26 unit did for me). At this point, real estate becomes even easier. You can cash out refinance your apartment then buy even more units if you want to scale or use the excess cash flow to pay down the loan and own the apartment complex free and clear.
What I Learned
Control your breathing to trigger your parasympathetic nervous system - rest and digest system. If you need to destress and calm down your mind, do this breathing technique. Inhale with your nose for at least 3 seconds then do a 2nd inhale with your nose. Slowly exhale from your nose for at least 8 seconds. This will slow down your heart rate and give you more mental clarity to make better decisions. This has been game changing for me!
Weekly Self-Reflections
Life comes in seasons. From 2021-2023, it was the season of hard work and stress. I grinded to buy and stabilize 2 apartment complexes and a mobile home park. I did all of this while working full time. If you zoom out even further, I have been grinding since I graduated pharmacy school in 2013- 10 year grind! I came out with $250,000 of student debt which I paid off in 4 years.
Starting 2024, I will enter a new season that is less stressful and more laid back. While scaling my portfolio, I put a lot of things on hold. I didn’t travel as much. I didn’t go out as much. I didn’t buy new things despite building up a huge net worth. I didn’t live like a typical 30 year old. Now I will do things that bring me joy and enjoy the fruits of my hard work. I will start to inflate my lifestyle now that I laid a financial foundation.
Video of the Week
I host free Q&As every Wednesday at 7 pm PST. Click here to join!
New Mentorship
I graduated pharmacy school in 2013 with over $250,000 of crippling student debt. Despite being highly educated with a doctorate and masters degree, I was taught absolutely nothing about money. I was making over $100,000 as a pharmacist and was clueless about personal finance.
4 years after graduation, I paid off over $250,000 of student debt using an 8 step system. I learned how to increase my W-2 income while decreasing my living expenses to increase my monthly savings rate. Using the extra savings, I was able to make extra principal payments and save over $180,000 on interest.
Student loans gave me a huge mental block. I was only focused off my loans and buying real estate never crossed my mind. Once I paid off student loans, it opened my mind to the endless of possibilities of real estate. I used the same 8 step system to buy my 1st house then eventually scale to 50+ units which replace my W-2 income.
Come join me as I show you how to tackle your student loans. From there, you can explore real estate - single family and multifamily - and obtain the life you always dreamed of.
If you are interested in pre-ordering the new mentorship program at a discounted price, please email me immediately. The first 10 people will receive a bonus 1 on 1 session with me.
