Portfolio Snapshot after 3.5 years of Real Estate Investing!
Thought I’d share a snapshot of my real estate portfolio after ~3.5 years and how the structure has changed over the years:
Current snapshot:
- 3 single-family rentals
- 1 multifamily syndication investment
- 1 hotel-to-apartment conversion fund
- Stake in 1 short-term rental deal
- Stake in 2 PadSplit deals
- Investment in renewable energy infrastructure
I started with single family rentals, with my target being markets in the Midwest and South. I started by buying ~1 per year, but realized if I wanted to hit my goals, I would either need to change my strategy or accelerate my ability to invest capital, or both.
I also started honing my targets for IRR, consistency, and required level of involvement. I wanted to be able to scale my portfolio in such a way that the time required from me to manage it did not scale proportionately with the portfolio size.
So far this year I've experimented with other forms of real estate investing, including my foray into multifamily syndications. As I evaluate this first investment, depending on the results I may try laddering multifamily syndication investments such that their exits produce a consistent stream of returns. My goal with my non-single-family assets is to be more hands-off than my single family portfolio, and see how the projected returns (which are higher than my single family returns) match up with reality. I also am developing the ability to underwrite and do due diligence on a number of different deal types and asset classes.
I've been focusing more on consistent income, strong operators, and deals where returns aren’t overly dependent on perfect conditions. I'm still planning to maintain or even grow my foundation of single family rentals in my target markets to provide a solid foundation with good fundamentals as my portfolio grows.
One big realization I've had recently is that there’s a big difference between projected IRR and reliable returns.
I'm still refining my strategy, but increasingly thinking about how to build something more predictable across cycles.
How are others balancing cash flow vs appreciation, active vs passive, etc. right now, and how does that affect how you think about growing your portfolios?