You have been following me for the past year, although I haven’t been too personal in terms of letting you know what is going on with my multifamily investing business.
This has not been my intent and I can assure you; this is about to change now! With all the changes in the market and the opportunities I see on the near horizon, I am committed to get you up to speed with all the amazing things I am currently working on.
I am happy to report that a while back I posted to my website the first “blog” entitled “Take Action” where I detailed how I am making over $10,000 a month in positive cash flow from several properties that I own.
Though, I am very happy about this, I must let you know that I will be leveraging my success and wil be focusing my efforts now on bigger projects and will keep you updated on this journey. Instead of buying multiple smaller properties, I will be acquiring bigger properties, yet still small to medium-sized apartment buildings. Some of these apartments may be 25, 50 or even 100 units. The best part is this is where the real equity happens because this is where we take advantage of the Power of the Cap Rate (more on that in a future communication).
I have considered two real estate markets to accomplish this feat: Eastern Massachusetts and Charlotte, NC. Though this may seem like worlds apart, there actually is a method to my market-choosing madness.
I have been actively communicating with brokers in both markets for the past year or so. As a matter of fact, I had been offered a nice multifamily property in Charlotte while in the middle of the pandemic. This was a 28-unit building with separate entrances and tenant-paid utilities. This was a great opportunity. However, it was in the thick of COVID and I was not sure how the market was going to swing due to the tenant eviction rules.
I analyzed this deal with the focus on the necessary cash-on-cash return that I would need and ended up passing on the acquisition. I have since analyzed multiple other properties using the same criteria. One being a 15-unit building in Massachusetts with similar characteristics. Once again, I passed on this deal for the same reasons. The latter deal was a good deal, but I did not feel like it was a great deal. And, in today’s over-zealous, over-priced market, it must be a great deal, or I will remain on the sidelines.
Due to my past experience (that should say, ‘age’), I am more mature in my real estate investments than I was in my younger years. I continue to educate myself and learn every day. I am also on the right path of using my real estate investment to avoid taxes as I was able to claim 50% of my W2 tax from my 2020 tax return (note the word ‘avoid’ and not ‘evade’). In doing so I have more capital to inject in my business to make it grow.
I am happy to have you along with me on this journey, I promise to keep you updated on every deal and every single thing that is happening on each property.
To Successful Investing,
JACKY FILS, MD, MPH, CWSP