<p data-rte-preserve-empty="true" style="white-space:pre-wrap;"><strong>Core Concept</strong></p><p class="" data-rte-preserve-empty="true" style="white-space:pre-wrap;"><strong>Buy when others are scared</strong>: Michael bought post-2008 and during COVID, using fear-driven discounts to build a $20M portfolio.</p><p data-rte-preserve-empty="true" style="white-space:pre-wrap;"><strong>STRs → Hostels</strong>: Started with Airbnbs in Hawaii, then pivoted to hostels due to regulation limits and desire for a more scalable, centralized operation.</p><p data-rte-preserve-empty="true" style="white-space:pre-wrap;"><strong>Hostel strategy</strong>: Not “cheapest bed” but <strong>best social experience</strong>—design-forward common areas, events, and strong community vibe.</p><p data-rte-preserve-empty="true" style="white-space:pre-wrap;"><strong>Economics</strong>: Same-size room can earn <strong>more per night</strong> with bunks (e.g., $480 vs. $200), plus partial occupancy still produces strong revenue.</p><p data-rte-preserve-empty="true" style="white-space:pre-wrap;"><strong>Returns &amp; risk</strong>: Targets <strong>~20%+ IRR, 2–3x equity multiple</strong>, but with higher risk, longer holds (5–10 years), and heavier operations vs. multifamily.</p><p data-rte-preserve-empty="true" style="white-space:pre-wrap;"><strong>Big lesson</strong>: Don’t do your first hospitality deal solo—<strong>partner or get a mentor/mastermind</strong> to avoid costly mistakes.</p><p data-rte-preserve-empty="true" style="white-space:pre-wrap;"><strong>Portfolio fit</strong>: Hospitality offers a <strong>hybrid of strong cash flow + equity upside</strong> if you can execute on both real estate and the operating business.</p>