• John Casmon

Passive Income Investing with Lane Kawaoka, Episode 67


Lane Kawaoka was focused on the American Dream, getting his degree, landing a high-paying job and buying a home. However, once he crossed those off of his list, he found himself with an empty house as his job required him to travel often. It was at this point that he decided to become a landlord and earn passive income. He continued to acquire properties, focusing primarily on single-family homes before expanding to mobile home parks and multifamily syndication. On this episode, Lane explains Cashflow Investing vs. Appreciation investing, why he chooses to be a passive investor, what to look for in a market and asset diversification.

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Key Market Insights:

  • Licensed Professional Civil Engineer

  • Bought his first home in Seattle, and wound up renting the place whilst he traveled for work

  • Learned about the importance of passive income investing and focusing on cash flow

  • Was investing in markets with higher appreciation, but little cash flow

  • Moved his portfolio into 11 single family homes in Birmingham and Atlanta

  • Primary markets (such as Los Angeles, New York,, Seattle, etc.): Highest paying jobs, population growth, international money, but not affordable

  • Atlanta Market: Potential growth & appreciation, diversification, job growth

  • A passive income investor, keeping his day job

  • Started his blog and podcast Simple Passive Cashflow after being asked multiple times about his real estate endeavors

  • Blog Audience: Younger than 45, high-paid professionals mostly engineer

  • Common Challenges of Working Professional: Lack of time, money, knowledge & network

  • Active Investing, hands-on management includes buying, rehabbing & refinancing

  • Passive Investing includes investing through syndication & REIT

  • Tips on looking for passive deals: Do not rely on the executive summary. Instead, look at the last 12 months Profit & Loss, use an analyzer, then add your best assumptions or practice

  • Market Strategy: Buy with cash flow

  • Currently selling his remaining single-family homes as he transitions to more syndication deals

Bull’s Eye Round

Winning Your Market: Find a deal that is undervalued.

Tracking Market Changes: Look and research appealing places to live.

Daily Habit: Work on daily to-do list.

Resources:

David Allan’s GTD

Digital Resource:

Google Docs

Tweet this:

“Cash flow is like oxygen. It helps you keep alive to fight another day.”

“You have to stick around, last until you get lucky.”

Places to Grab a Bite in Honolulu:

Ginza Bairin

Connect with Lane:

Email: lane@simplepassivecashflow.com

Website: simplepassivecashflow.com