Working Full-Time? How Michella Chiu Builds Multifamily Real Estate After Work Part 2

Episode Summary In Part 2, Michella Chiu and Eric Lindsey bring the conversation up to the current market. Michella acknowledges that multifamily is sensitive to rising interest rates and explains how her team responded with patience, conservative underwriting on cap rates and repairs, assuming lower-rate loans whenever possible, and focusing on deals that have a specific reason to win. She walks through a recent example: a Class A, newly built property of around 200 townhouses in Louisville, Kentucky, acquired from a builder that builds rather than operates. The property was over 90% occupied when construction was completed and is now 98% occupied. Michella also explains how her team’s market research led them to Louisville, why relationships with local operators and property management companies can surface off-market deals, and how supply and demand determine whether a newer property still has room to grow rents. She describes the business plan for the Louisville deal, the fund-of-funds structure her team used to raise capital, and how her team uses AI to process rent rolls and T12s and to research sales and rent comps while checking everything for mistakes. In the Moonlight Coaching Round, she shares why new investors need to understand how money is lost, why they should pick one or two lanes, how to delegate with SOPs, and how seller financing can help someone with no money or experience get started. Key Takeaways Why multifamily is sensitive to interest rates, and why Michella’s team relies on patience instead of buying in every market cycle. How conservative assumptions on cap rates and repairs, along with assuming lower-rate loans when possible, help protect investor returns. How her team’s market research process identified Louisville, Kentucky, and why markets with strong tech, AI, and chip-industry jobs also appeal to them. Why local property management companies can be a source of off-market deals, especially when you are new to a market. How the team acquired a Class A, newly built townhouse property from a builder that builds but does not operate. Why supply and demand in a specific market decide whether a newer property still has room for income growth. How the Louisville business plan focuses on safe cash flow: bringing units to market rent, increasing parking income, modest amenity investment, and choosing lower-utility-cost replacements over time. How a fund-of-funds raise was fully subscribed in under four weeks through email, text messages, and phone calls with repeat investors. How AI handles data entry on rent rolls and T12s, cutting underwriting time, by the team’s estimate, from about eight to nine hours per deal to about two to three, with the team still checking the results for mistakes. Why new syndication investors should first learn how money is lost and what not to do. Why new investors should pick one or two lanes and stay with one for at least six months. How delegating repetitive tasks through processes and SOPs helps balance business and life. How seller or owner financing from tired landlords can let someone start with a small down payment, or sometimes none. Why Michella recommends The Definitive Guide to Underwriting Multifamily Acquisitions and getting comfortable with data. What This Means for W2 Professionals Michella’s approach shows that busy professionals do not have to chase every deal or do every task themselves. Patience, conservative underwriting, and a clear reason for each deal to work can protect returns in a higher-rate market. Delegating repetitive work through SOPs, using tools like AI for data entry while still checking the numbers, and focusing on one or two strategies can help you build real estate experience alongside a demanding career. About Michella Chiu Michella Chiu is the President of Steady Work Capital, a real estate investment company focused on multifamily, workforce, and affordable housing. Her background in research, analytics, and global marketing supports her data-driven approach to underwriting, market analysis, and investor communication. Guest Links Website:⁠Steady Work Capital⁠ Instagram:⁠@investwithmich⁠ Email:⁠[email protected]⁠ Company: Steady Work Capital Connect with Eric Lindsey / Moonlight Equities Free e-book:⁠Download here⁠ Website:⁠Moonlight Equities⁠ Schedule a call:⁠Book a conversation⁠ Learn more:⁠Eric Lindsey’s links⁠ Suggested Hashtags #RealEstateInvesting #MultifamilyInvesting #RealEstateSyndication #SellerFinancing #AIUnderwriting #W2ToWealth