Dec 10, 2019
A house-hack is a great way to get started in real estate. You live in one unit and rent out the others, so the residents pay the mortgage and expenses. Jay-R Domantay used this strategy to get his first deal and then invested in a couple of duplexes before making the leap to commercial real estate.
Born and raised in the Philippines, Jay-R moved to Chicago in 2007 and has used hustle, grit, and ingenuity to build a 27-unit portfolio. Even more impressive, he’s done it all while working a full-time job and another part-time gig. He is not a licensed CPA and real estate broker, helping others get started in real estate investing. We talk about his steps to go from house-hack to commercial real estate, lessons learned along the way, and what's next on his investing journey.
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Key Insights
- Raised in the Philippines and moved to Chicago in 2007 at 17 years old
- Did a house-hack on a new 2-flat in Berwyn, IL
- With an FHA loan, he only brought $7,500 to the closing table
- The rental income covered the majority of the mortgage and utilities
- Acquired a 2-flat foreclosure in Cicero for $80,000
- Needed 25% down, but did not have all the capital
- Took a loan on his 401k to get the remaining capital
- Made the leap to commercial multifamily apartments
- Tips for seller financing: build rapport, demonstrate capabilities, establish trust, and be easy to work with
- The lending process was easier for commercial properties than the 2-4 unit residential units
- Looking to do a passive deal to learn more about syndication
- Seeking 8-24 units for his next active investment
- On the Westside of Chicago, 2-4 units are still going strong
- Cash
flow, cash reserves, and long-term financing
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Bull’s Eye Tips:
Apparent Failure:
Not having enough cash reserves, had to tap into W2 income to cover costs
Most Recommended Book:
Eat That Frog by Brian Tracy
Most Recommended Digital/Mobile Resource:
Google Docs and Dropbox
Daily Habit:
Miracle Morning Routine
Wish I Knew Starting Out:
The importance of cash reserves
Advice to College Student:
Consider the cost of college before you take out a loan
Advice to Ignore:
People who have not done what you want to do
Current Curiosity:
AirBNB
Best Place to Grab a Bite:
Lola Tining
Connect with Jay-R:
Email: mvdarental@gmail.com
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