130: How to Build a Medium-Term Rental Portfolio with James Hwang

On this episode of Zen and the Art of Real Estate Investing, Jonathan welcomes guest James Hwang, who found his niche in mid-term rentals. James is well on his way to building a large medium-term rental portfolio after starting with nothing. By day, he is an oncology pharmacist. By night, he’s a real estate investor, renovating the projects he takes on.

Jonathan and James jump into his story, beginning with the troubles his parents experienced owning rentals when James was a child. They explore why James settled on a multifamily as his first rental, why he believes strongly in giving to others and building a community, and how he was introduced to mid-term rentals. You’ll hear the income differential between long- and mid-term rentals, the systems James put into place to manage his properties, and the questions to ask yourself before entering the mid-term rental market. James explains the importance of vetting prospective tenants carefully, mixing in long-term rentals with mid-terms, and the ability to offer those tenants other properties once you’ve built your portfolio. Finally, Jonathan and James explore why mid-terms don’t need to be flashy, what his properties offer that others don’t, and using arbitrage to get ahead in the real estate game.

James Hwang quickly figured out what would work for him as a new investor, and he’s eager to help others learn to do the same.

In this episode, you will hear:

When James Hwang realized real estate would be a part of his future
His parents’ experiences with real estate, why it was initially off-putting, and how he changed their minds about it
James’s first investment property and why he chose a multifamily
The techniques he used to manage his stress as he began purchasing properties
Giving to others, building a community, and why it ultimately will be reciprocated
What drew him to the idea of mid-term rentals, and how he got started
The income differential between long-term and mid-term rentals
Putting systems into place to manage properties and matching those to your goals
Questions to ask yourself before jumping into the mid-term rental game
Vetting your tenants carefully and ensuring you’re acting as a good landlord
Mixing in long-term rentals with mid-terms to maintain steady cashflow
Humanizing the landlord-tenant relationship and remembering that when increasing rents
Being able to offer potential tenants other properties once you’ve built an economy of scale
How James bought a duplex with mid-term rental opportunities in mind
Why mid-terms don’t need to be as flashy as short-term rentals
What PPL is and why that matters when you’re offering mid-term rentals
The arbitrage he’s created and how it’s benefitting his business and the owner’s
Security deposits and rent while using arbitrage
James’s overall goal with arbitrage at the apartment complex he’s in

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