What 40K per month in Rental Income Actually Looks Like - Would you do this for $480K per Year?

I'm Christian Osgood, your channel host. I own hundreds of units just like this. This is what it looks like to be a landlord, and this is multifamily strategy. Welcome to the channel. I'm here drenched in water at my Stevemill property. This is the 44-unit building. I'm gonna show you guys what it looks like to do management by walking around today, figuring out what is going on with your property in the worst of conditions. My shoes are absolutely soaked because we are at a flooded parking lot. I'm making sure the drainage for every building is correct today. This is the 44 units. I've been sharing the story with you guys, bought earlier this year. There's the clubhouse, here's the apartments. We're going to be walking through 3 of the units that we're getting made ready right now in the middle of a storm. I am so excited to show you guys what it actually looks like to be a passive real estate investor. Come with me. We're inside one of the units of the 44-unit. I'm here with Matthew Wang, who is one of the owners of this building, visiting Stephenville for the first time. Welcome to the channel, Matt. Thanks for having me, guys. This is one of my favorite units. This— we walked in here, not too much to do. We just have to clean and there There was someone who probably smoked in the unit at some point. Smells lightly of smoke, so we're going to get a Noseinator in here, but I'll show you what this looks like. When I talk about buying nice real estate, this is what you're looking for. Renovate nicer than your competition at the same price point. Don't over-improve. Laminate floors, but they look great. Simple, repeatable wall colors. Every unit in this building, always the same paint. Makes it very fast to turn. Hop over to the bathroom. Plastic shower surrounds, very easy to clean, very easy to replace, look just fine for this level of housing. This is nice affordable housing. Clean new toilet, we just came in and installed that. Basic cabinets, we have our vanity, we have our mirror, we have our sink. Again, clean, simple, repeatable. That is the model if you want to play the affordable housing game. Now a couple of advantages here, you do have a absolutely Massive closet. This is one of our 1 beds. We also have some 2-bed units. There's a huge backyard we'll walk out to in a little bit. Here's the little amenities that make us the big money though. You got your microwave, you got your oven, you got your fridge. They're all color matched, very important. They don't have to be stainless steel, they do all have to be the same color. That's a huge thing a lot of people miss. I hate going to the one where it's like stainless steel and it's black and it's white and it just looks like trash. Here's the big money maker though, little thing. In-unit laundry hookups, and we have a laundry facility. What does this do? If I provide laundry machines, which I never do, they never respect them. They put way too much detergent in them. They break the machines. You replace them all the time. It's the worst maintenance decision you could possibly make. What you do is you offer the hookups and you buy a campus that also has a laundry facility. They can choose to use the coin-op and not buy a laundry machine, or they can get their own laundry machine and put it in the unit. They get to leave with their laundry machine. It's theirs, they own it, it's their choice. If your competition doesn't offer that, it's already nicer. And then the little amenities. You actually have a dishwasher in the unit. You have well-kept cabinetry. This is what you really want to buy. When I talk about clean and simple and spacious, high ceilings, basic paint color, open floor plans, lots of storage, Clean appliances. You're getting the picture. This is what a good purchase looks like. First day, this is unit 801 of the 44 units. This is the only one that'll look different from the other ones. I want everything to look identical. However, these floors were in perfect condition. I like to go lighter. It makes the space feel a little bit bigger. However, this is what we have. Other than that, this will look very consistent to our other apartments, except we also had beat-up cabinets. Now, often we replace them, but they were in good condition. The coloration on them was trash. We keep this as a backup paint color. So in this video, I'm going to talk a lot about the consistency and how you use replaceable pieces to keep your units affordable, make a lot of money, and provide an excellent place to your tenants. In the event that you need to prepare something and it does just take a nice coat of paint, always have a darker paint on hand. Don't replace things you don't need to, but we do have backups of all the flooring, countertop, paint colors all in storage on site at the property so that we can rapidly turn. Literally every unit. But this is what it looks like, guys. I have 3 one-beds available. All of our two-beds are leased at this campus, so I can't show you guys any of those. But this is what it looks like— very consistent, very clean, rent-ready units ready to go. If you're going to be an excellent manager, you're going to do this. I always say this, I'll say it again: management by walking around. You manage by actually going through the units, making sure your unit turn teams are doing what they're supposed to, your management and leasing teams are doing what they're supposed to. We're going to get these things all online and leased this next week. This is how you play the game quickly and efficiently. Here's a different floor plan for another 1-bed unit. This one is signed lease. We have a move-in coming in. I'm doing the final inspection just to make sure everything looks up to snuff, and it does. Look at that consistency in the property. White appliances, everything is new, clean, crisp, matching. Countertops are clean. We had some moldy trim boards in here, few bugs. Not bad, but definitely needed to be addressed. That was all we had to do here. When you run a property well, you tend to attract nicer tenants. We have great tenants in here. So we come in, the mold has been remediated from around the bathroom. There's that ugly guy in the mirror over there. What's up? But guys, this is what I want real estate to look like. Simple, repeatable. When I say one unit looks like another unit looks like another unit looks like another, this is how you get the units turned so darn fast. We have 3 vacancies here. We just had a few move-outs. We'll be able to increase rent a little bit as we lease these up. This property staying occupied is absolutely critical. The way that you do that is this strategy of consistent replaceable parts in entry-level housing for beautiful real estate. I'm not the only one buying deals zero down. We bought this zero dollars out of pocket. You should be buying deals like this zero dollars out of pocket. You need to check out Multifamily Strategy, not just the YouTube channel, which you've already liked and subscribed to, but the mentorship. We have a program with people all over the country in a group training with me 3 times a week, learning how to buy deals like this and taking out deals all over the country. Over $50 million of deals have been done in the first half of this year. I am so excited to share this with you and invite you into it. If you want to learn more about Multifamily Strategy, go ahead and click the link below. You can book a call with my team. They'll talk about you, your market, your objectives, and if Multifamily Strategy is a good fit for you. And this is the clubhouse slash our office. This is my base of operations for this property. Massive, massive 20-foot ceilings, huge space, nice fireplace. We got a bingo hall because again, it's a senior citizen campus. Our oldest tenant here is 94 years old, which is wild. Our youngest is 61. We are mostly occupied. We have one move-in happening in the unit that I will show you here in just a little bit, and then we have two other vacancies. So we have 41 of 44 units occupied with a move-in coming in. This should stay near 100% occupancy. There's a huge need for senior housing which is part of the reason that we bought the property. Also, we just absolutely slayed this one on price. A little bit on deal structure. It was $1.8 million which is a crazy, crazy, crazy price. We're able to go to the bank. They had no issue giving us 80% loan-to-value. So, we only had to come in with a few hundred thousand dollars. Each investor came in with $175,000 giving us the entire down payment. Plus a reserve. Today we're sitting with a little over $100,000 in the account as our reserve budget. The property is running really well. We are cash flow positive and have been from the get-go. This is what we want to do with great real estate. Now, as a requirement of Texas state law, we also get 50%, 50% off of state taxes, which is extremely helpful in exchange for spending $5,000 per unit every 3 years in renovations. So we're looking at a bunch of other projects to do here and keep all the renovations coming. Right now just checking out drainage and making sure that we don't have to do anything else. I'm on site here with my buddy Matthew Wang, one of the other owners. We're going to come up with a couple of projects that we need to do here over the next few years, so trying to figure out what they are. Unfortunately for us, we kind of struck out on that today. I'm not seeing too much to spend money on yet, but we will find it, mark my words. I want that 50% off. Once again, I'm Christian Osgood. This is Multifamily Strategy. I am standing in a puddle right now to deliver you the best content online on how to be an actual landlord, make a ton of money in real estate, and provide excellent housing to excellent people. Hopefully I earned a like and subscribe here, but either way, I will see you on the next episode.