What Should They Do NEXT? Portfolio REVIEW

Michael Zuber (0:01)

All righty, folks, one of the funnest things I get to do with my school community, other than talk to them every Sunday at 8 a.m., is actually perform a portfolio review. So today we have Eric with us, who's gonna give us a rough outline of his portfolio, and he's gonna ask a bunch of questions. And I could not promise he's gonna like my answers, but I can promise you I will have an opinion. So Eric, thank you very much for being a part of school. Thank you for reaching out. Let's first introduce yourself to the channel and the world.

Who is Eric, what do you do, where you're at in this country?

Eric (0:31)

Yeah, my name's Eric. I live in Oregon. I have four kids. I've been doing real estate investing for, I've been really doing it hard, I'd say, for 10 years.

Michael Zuber (0:45)

Okay.

Eric (0:46)

So yeah, I'm looking forward to seeing what you have to say. I kind of have some questions specifically, some annoyances.

Michael Zuber (0:53)

Perfect.

Eric (0:54)

I don't feel like now is a good, maybe if I knew if I had a better crystal ball, I might have done some things differently. But I just kind of want to see what your thoughts are.

Michael Zuber (1:05)

I promise I will get them. So let's paint the picture for me, Eric. So you've been doing this 10 years hard. What's the portfolio look like today, rough and tough? How many units, doors? I don't know how you want to. I don't know how you want to approach this.

Eric (1:17)

It's close to about 50 units.

Michael Zuber (1:19)

Okay. So 50 units. Is that mainly residential or we got to mix?

Eric (1:23)

Mainly small multi-family. So by small multi, I mean under 20 units. So I have a partner that I split 15 units with. I have a 15-unit building, I have an 18-unit building. Okay. Then I have some, I'd say about half.

Well, I have some Airbnb, a couple of Airbnbs as well.

Michael Zuber (1:44)

And those Airbnbs are nightly rates, weekly, monthly? What are they?

Eric (1:47)

Nightly.

Michael Zuber (1:48)

Okay. All right. Okay, cool. All right. And those also in the Portland or Oregon area? Kind of all the same area?

Eric (1:54)

I'm in Central Oregon, but yeah.

Michael Zuber (1:56)

Okay. Got it. All right.

Eric (1:57)

All kind of pretty local within an hour of me.

Michael Zuber (2:00)

Okay.

Eric (2:00)

Airbnbs are more in the town I'm at, the multi-family stuff spread out a little bit.

Michael Zuber (2:05)

All right. And then how did you pull this portfolio together? Did it start 10 years ago with a 15-unit building or how did it be?

Eric (2:13)

Well, I did a house hack when I got out of the army, which was a billion years ago. And then I invested with somebody else in 2007, good timing there, got smashed, finally got out of that, and then I bought a 15-unit on my own.

Michael Zuber (2:31)

Okay.

Eric (2:32)

And then with the little, I had somewhat, I guess enough credibility where I would go around and pitch people ideas.

And that's kind of how I accumulated the other stuff. I found somebody who was willing to kind of buy it, and I was kind of the boots on the ground. So we bought a couple of multi-families, and then we did a refinance, and I have done some other stuff since I've been kind of a little bit more.

Michael Zuber (2:57)

So do you self-manage all these?

Eric (2:59)

No, no, I don't self-manage any. I used to, but I don't do any of it anymore. I do the Airbnbs. I actually have a business where I manage Airbnbs. Got it. So I do manage my own Airbnbs stuff, but not the...

Michael Zuber (3:11)

Okay. All right. Well, that certainly helps with taxes. Okay. I like it.

Okay. All right. So, and again, they're all within 60 minutes of each other. Any vacancies today? Like, are you running any vacancies?

Eric (3:25)

Yeah. I mean, we have, we always, yeah, there's always vacancies. I mean, nothing too extreme. With 50, you're always going to have somebody moving out somewhere. But for the most part, they're running, they're not running out as easily as they did. I don't have a giant waiting list anymore. So we're trying to get in there the day somebody leaves. But within a month, I'm usually kind of.

Michael Zuber (3:46)

And what are the, like, are these B class, C class, A class?

Eric (3:49)

Yes. So I would say the multifamily stuff is C class. I have one that's a little bit rougher even. It's kind of a HUD. Like I can't even manage it by law. I have a property manager that has to do it all. There's only a few people with the license to do it. And the location makes it where a lot of people don't even want to do it, even if they had the license.