Ep. 146: From House Hack to Commercial Multifamily with Jay-R Domantay

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.

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