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: [email protected]

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