How to Buy an 11-Unit Real Estate Portfolio from Long Distance

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This powerful interview is with returning guest Mark Jones II (Episode 16). He runs @livinrentfree, through which he educates and empowers tens of thousands of people to invest in 2-4 unit multifamily real estate. To date, his students have purchased over $20 million worth of real estate.

Mark practices what he preaches, having house hacked in Los Angeles several times. His mission is to mentor the thousands of underserved, “rent burdened” families all over America to become financially free.

Listen in as Mark discusses why he recently decided to make an out-of-state purchase of 11 units in Pittsburgh, how to maximize the cap rate and cash flow of a property, and how to use credit creatively and responsibly in times of emergency.

Highlights

1) Single-family units are valued based on residential comps and sales; whereas, commercial buildings—specifically multifamily—are based on net operating income and the cap rate. This means that if you can improve the value of the property, you create equity out of thin air.

2) Asset management is different from property management in that, as a real estate investor, you need to stay conservative with your numbers and have an asset management plan—a business plan—for each of your properties. Investors see the big picture whereas property managers can only focus on the individual units they’re assigned to.

3) Even large, well-known property management firms can defraud their clients. Stay in touch with your property manager via regular video calls, do your due diligence with regards to maintenance costs, and always have at least three months of reserves for mortgage payments.

How to find him

Instagram – @livinrentfree

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