Scaling from 8 Single Family BRRRRs to a 24 Unit Apartment Building with Alex Felice

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Scaling from 8 Single Family BRRRRs to a 24 Unit Apartment Building with Alex Felice

Alex Felice – of BrokeIsAChoice.com, talks to Neil Henderson and Brittany Henderson, the hosts of The Road to Family Freedom podcast. Alex is the first repeat guest on The Road to Family Freedom. He talks about his journey from buying 8 single family rentals using the BRRRR strategy, to buying a 24 unit apartment building with 5 other partners.

 

Post-Interview Analysis

  • Key Lessons Learned: Real Estate is hyper-regional, there is no “national real estate market”. The market in Las Vegas, Nevada is very different from the market in Reno, Nevada, and there are also submarkets within those regional markets. It’s important to understand what is driving and affecting housing demand on a regional and sub-market

Episode Highlights

  • Alex recounts his journey from buying 8 single family rental properties using the Buy, Rehab, Rent, Refinance, Repeat strategy, and why he sold his primary residence in Las Vegas, Nevada.
  • Why he stopped buying single-family income properties to focus on buying a 24-unit apartment building and doing flips.
  • What was the purchase price on the 24-unit apartment building?
  • How he found the deal.
  • The importance of networking in real estate
  • How he purchased the 24-unit apartment building with five other partners.
  • How much capital he put into the deal
  • What’s the business plan to turn around the 24-unit?
  • How is he creating extra income for his partners?
  • How real estate investors who self-manage often step over dollars to pick up dimes
  • The importance of starting with small, manageable deals before you try and tackle the larger deals
  • Why he doesn’t want to own 5,000 units
  • What is the long-term plan for the disposition of the 24-unit apartment building?
  • The power of commercial real estate to create wealth and income using the combination of Net Operating Income and Cap Rate.
  • The most frustrating aspects of tackling the 24-unit
  • The importance of not coming into a deal undercapitalized.
  • How and why he has adding flipping houses to his investment repertoire.
  • How is the COVID-19 pandemic affecting the economy and the real estate market?
  • The difference between the pandemic and the Great Recession.
  • The effect of the pandemic on the short term rental market
  • The importance of having reserves to deal with unexpected market conditions

Books and Resources Mentioned

About the author, Neil

Neil Henderson is the co-host of The Road to Family Freedom, a self-storage investor, and avowed proponent of short-term rental house hacking. He founded The Road to Family Freedom to guide busy parents to financial freedom through passive real estate investing.

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