From Short Term Rentals to Multifamily & Balancing C-Suite Responsibilities with Andrew Schutsky

Taylor talks to Andrew Schutsky about his journey as a real estate investor. Andrew started 15 years ago by buying a short-term rental property for his family to use as a vacation home. He then decided to take things further and scale up, researching Bigger Pockets and the multi-family space. This conversation will discuss the benefits and drawbacks of investing in short-term rentals and multi-family investments, looking at factors such as depreciation and appreciation, cash flow, landlord laws in different locations, budget for renovations, reserves for unexpected expenses, and more. Andrew will also speak about the importance of balancing real estate investing and other commitments. Finally, he’ll talk about the need for reliable partners when investing in multi-family real estate – from referrals from people who have worked with them in the past to setting up a transparent process for asset management with one specific individual assigned as an asset manager with a consistent cadence. Join us to learn more about Andrew’s journey and hear his advice!



[00:01 – 06:48] Opening Segment

  • Andrew started investing in short-term rentals to have a place to take his family on vacation
  • Got into multi-family investing and now does both
  • Balances real estate investing with family commitments and professional commitments
  • The process for adding long-term multi-family into the investment process
  • Building/renting new construction or value add multi-family for passive income

 

[06:49 – 14:11] Exploring the Benefits of Short-Term Rental Investing: Lessons Learned and When to Cash In

  • Depreciation from short-term rentals has been a huge benefit
  • No taxable income on any of the short-term rentals generated so far
  • Appreciation and depreciation are two of the most significant benefits from a cash flow standpoint
  • Have an ample renovation budget, double what you expect
  • Long-term appreciation potential has been the biggest win

 

[14:12 – 19:51] Finding Your Real Estate Niche: Balancing Time Commitments, Family and Investing

  • Interest rates are still low, and property values are high
  • The right moment to cash in on these things has not dropped that much yet.
  • It is essential to be consistent with commitments and flexible when life gets in the way.
  • Know which action to take and draw out priorities to knock out tasks when time is available.
  • Focus on what you are good at or like doing, and test it out by dedicating 60-90 days to it

 

[19:52 – 26:57] The Key to Successful Asset Management in Multi-Family Deals

  • Referrals from people who have worked with potential partners in the past are vital to finding compatible partners
  • Ask questions about communication style and respect for the time when vetting potential partners
  • Having one specific individual as the asset manager is essential for clarity and success
  • Establish a regular cadence of communication with the property manager

 

[26:58 – 31:21] Closing Segment

  • Best investment: a 43-unit property in Greenville, South Carolina
  • Worst investment: a stock that was a startup pharmaceutical
  • The most important lesson learned: don’t try to do it all yourself and figure out what you’re good at

 

Connect with Andrew!

Website: www.InvestwithRedline.com 

 

Invest passively in multiple commercial real estate assets such as apartments, self-storage, medical facilities, hotels, and more through https://www.passivewealthstrategy.com/crowdstreet/

Participate directly in real estate investment loans on a fractional basis. Go to www.passivewealthstrategy.com/groundfloor/ and get ready to invest on your terms.

Join our Passive Investor Club to access passive commercial real estate investment opportunities.

LEAVE A REVIEW + help someone who wants to explode their business growth by sharing this episode or clicking here to listen to our previous episodes.



Quotes:

 

“There is no magic bullet. For me, it’s all about just being consistent with your commitments and yourself and being flexible.” – Andrew Schutsky

 

“It sounds simple, but it can’t be overstated. How important is it for someone getting into the game and thinking that they’re going to just figure it out as they go? I can tell you it will not go well.” – Andrew Schutsky





About our Guest

Andrew Schutsky

Andrew is the founder of Redline Equity, LLC, a real estate syndication firm specializing in the acquisition, improvement, and management of large apartment buildings. He also has over 15 years of real estate rental experience, beginning with a “house hack” of his first home.

In the Multifamily investment space, Andrew is currently active as both a GP (General Partner) and LP (Limited Partner) and has ownership interest in over 1300 units. Redline Equity currently manages properties in 3 different markets with over $70MM under management.

Andrew is also the host of the Crushing Cashflow podcast which interviews investors of all stages of their journeys to tell their stories of successes and failures.

Additionally, Andrew also currently works in the technology space as a CIO (Chief information officer) for a Medical Technology business based out of Pennsylvania.

He holds a Bachelor’s degree in Information Systems from Drexel University in Philadelphia, PA. Andrew lives in Thornton, PA with his beautiful wife, Jodi, and two fantastic children, Aidan and Jaclyn.

This episode is brought to you by Roofstock, the world’s largest residential real estate investing marketplace. Open an account for free and start browsing turnkey investment properties today.

We are also supported by You Need a Budget. YNAB is a different kind of personal financial tracking company. They’ll help you track and plan your money with your priorities in mind. Open your trial account today and give it a shot!

About the Host

Taylor on stage

Hi, I’m Taylor. To date I’ve acquired or partnered on over $250 Million in Commercial Real Estate Investments. I help busy professionals invest in multifamily and self storage real estate through my company NT Capital

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Extremely useful podcast
Extremely useful podcast
@thehappyrexan
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Short, impactful with excellent guests. If you have a full time W-2 job or business and are looking for ways to get involved in real estate on the side, this is for you.
Simple & effective information!
Simple & effective information!
@jjff0987
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This podcast is worth listening to for investors at all levels. The information is simplified for the high level investors but detailed enough to educate seasoned investors about nuances of the business. I recommend!
Awesome Podcast!!!
Awesome Podcast!!!
@Clarisse Gomez
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The host of Passive Wealth Strategies for Busy Professionals podcast highlights all aspects of real estate investing and more in this can’t miss podcast! The host and expert guests offer insightful advice and information that is helpful to anyone that listens!
Great podcast!
Great podcast!
@Owchy
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Love all the information and insights from Taylor and his guest. Fun and entertaining. Highly recommend.
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