CP24 House hacking and partnerships with Tony Angotti
- E24
- 45:53
- September 15th 2020
Join me and my co-host, Vince, as we chat with Tony Angotti about house hacking, utility optimization, and choosing the right investment partners. Tony is a realtor with Deacon and Hoover Real Estate Advisors specializing in investment real estate in the Pittsburgh Area. He capitalizes in out of state investors, and he’s going to share his insight on how to develop those partnerships, and more. Stay tuned!
Getting into House Hacking
Tony came across the concept of house hacking when his wife introduced him to the BiggerPockets podcast. He realized that it’s a win-win solution to live and earn at the same time, in a property that you own.
House hacking is a good first step, either for first-time investors wanting to get into the real estate industry or someone who just wants to build passive income. Tony shares that with house hacking, he can start with a small capital and slowly leverage that into bigger investments and build cash flow that way. He considers himself someone who doesn’t want to be tied down to others’ obligations and prefers a more flexible lifestyle. The passive income he gets from house hacking perfectly fits his life preferences.
But while house hacking has its many advantages, Tony also cautions first-time investors on the possible challenges of going this route. He shares how it is crucial not to try to do everything on your own. In the beginning, Tony was his own property manager, handyman, numbers guy, basically doing everything required by his business. He realized that it was not sustainable to do that and to grow your business, you need to put a good team together to help you out. He is now in the process of hiring his first two employees, one of which is his dad, who will be working as his handyman.
From one duplex unit, Tony now owns roughly 80 units and is nowhere near stopping!
Outline of the Episode:
[02:29]- Discovering the potential in house hacking and real estate.
[05:10]- Deciding between hiring an outside property manager or bringing somebody into your own group. What are the pros and cons?
[10:23]- What are the challenges in purchasing class C or D properties?
[16:22]- Managing a real estate business in Pennsylvania amidst the COVID-19 crisis.
[20:30]- Starting in real estate as early as possible and getting people to help you with the business from the get-go. Don’t try to do everything on your own!
[23:31]- Why storefront properties are more challenging to fill than residential properties during the pandemic?
[25:26]- Separating the heating expense in targeted buildings can help increase the NOI - Utility optimization is a great strategy to explore!
[30:28]- What software to integrate into your asset management, particularly for record-keeping and accounting?
[34:54]- Finding somebody with the same character and attitude towards investing is essential!
[35:53]- How to raise capital money through private financing? Getting into the specifics of debt partnerships.
Resources:
● “The Millionaire Real Estate Agent” by Garry Keller
● “The Millionaire Real Estate Investor” by Garry Keller
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The Cashflow Project
This is for busy professionals who are looking for financial freedom through passive income, with a focus on cashflow assets in Multifamily Real Estate. We will be covering a variety of topics such as buying, managing, and selling real estate assets, specifically apartments.
To learn more about us, visit tricityequity.com