From W-2 Engineer to Full-Time Investor: Adjusting After Interest-Rate Spikes with Lane Kawaoka

Lane Kawaoka started investing while working full-time as a civil engineer. When interest rates jumped and loans tightened, he paused new acquisitions, re-checked every assumption, and pivoted from quick cosmetic rehabs to ground-up multifamily development 🏗️. By building units for roughly $150 K and targeting exits around $200–250 K, he now builds in wider margins and stronger downside protection.

🔍 Things Discussed

Post-2008 rental cash flow looked steadier than stocks, sparking Lane’s first purchase.

Engineering discipline—spreadsheets, reserves, and strict assumptions—guided every decision.

A 20–30 % price reset (driven by higher rates) proved old underwriting no longer worked and pushed him to rethink strategy due to the interest-rate spike.

How to Scale Your Business While Working Full-Time 🚀📈

Early years: dawn underwriting, lunch-hour lender calls, weekend property walks.

Market shift: lenders now top out near 60 % LTV, so investors must bring more equity than before.

Positive trend: deals with DSCR ≈ 2× are appearing again—an encouraging sign that healthier spreads are back on the table.

⚖️ How Lane Balanced Life, Family, W-2 & Real Estate

Delegated day-to-day tasks to property managers and virtual assistants, preserving family time.

Batched site visits on weekends and scheduled calls during breaks.

Built a multi-year pipeline (4–7 years) to smooth cash flow through future market swings.

🔑 Lane’s Current Business Focus: Strategic Growth in This Market (2025)

Conservative underwriting—account for higher debt costs and lower leverage.

Ground-up multifamily—new builds offer more control and longer asset life than 1970s rehabs.

Selective diversification—evaluating mobile-home parks, self-storage, and hotel conversions to balance risk.

⭐ Key Takeaways & Advice for Busy Professionals 💰

Track DSCR opportunities 📊—a 2× coverage ratio today can signal an amazing cushion if you can find them, though it is not required to make an investment.

Plan for lower leverage during inflationary environments 💵—with 60 % LTV common, line up extra equity early.

Pause when numbers break or don’t work in the market ⏸️—waiting beats forcing a thin deal.

Build a 4–7-year pipeline 📆—one downturn shouldn’t sink your strategy.

Quit last, not first ⏳—secure dependable cash flow before leaving a paycheck.

Click On This Link For Our Free E-Book "An Introduction Into Apartment Syndication: https://moonlightcre.com/ebook_download/
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Lane Kawaoka locked in his first Seattle rental in 2009 while working full-time as a civil engineer. By 2015 he’d assembled 11 professionally managed single-family homes. Yet each year brought the potential risk of having at least one eviction or a major mishap—flooded basement, fallen tree, you name it—that could wipe out months of profit. Realizing that more houses meant more exposure, he pivoted to large multifamily syndications for scalable growth. 🏠➡️🏢

🔍 Things Discussed
Early Influence & Real-Estate Spark ⚡
• Lane put 20 % down on a Seattle house and rented it while traveling for work.
• He expanded to Atlanta and Indianapolis for stronger returns due to cheaper prices than Seattle.
• He built an 11-home portfolio that proved rentals work—until risk outweighed reward.

Engineering Skills Applied 🏗️🎓
• He used project-management discipline for budgets, timelines, and reserves.
• He leveraged a W-2 salary and credibility for easier loans and a six-figure safety net.
• He executed a 1031 exchange to roll house equity into apartment deals.

How to Scale Your Business While Working Full-Time 🚀📈
• He closed six-plus apartment syndications before resigning.
• He took less demanding jobs to gain flexibility for more time to work on his real-estate business.
• He left the W-2 around 2018-19 once cash flow was secure.

⚖️ How Lane Balanced Life, Family, W-2 & Real Estate
• Early-morning underwriting before work, mid-day calls, weekend site visits—12–15-hour days.
• He used property managers and VAs to shield his family time.
• He underwrote large cash reserves into each business plan to keep surprise expenses from wrecking household finances.

🔑 Lane’s Current Business Focus Is: Strategic Growth in This Market (2025)
• He underwrites conservatively in today’s higher-interest-rate environment.
• He leads SimplePassiveCashflow.com and Ohana Mastermind to guide busy professionals into great real-estate opportunities.
• He is focusing on evaluating mobile-home parks, self-storage facilities, and buying hotels for diversification.

⭐ Key Takeaways & Advice for Busy Professionals That Want to Buy Real Estate 💰
Leverage Your Paycheck 🏦 – Stable income wins with lenders and cushions reserves.

Start Small, Learn Fast 🛠️ – One well-run house beats any seminar.

Recycle Equity 🔄 – Use 1031 exchanges to leap from houses to apartments.

Quit Your Job Last, Not First ⏳ – Ensure reliable cash flow before handing in your notice.

Click On This Link For Our Free E-Book "An Introduction Into Apartment Syndication: https://moonlightcre.com/ebook_download/
Website: Moonlightcre.com
Click On The Link Below To Schedule A Call With Eric:https://calendly.com/moonlightequitiesgroup/scheduled-conversation
Click On The Link Below For More Information About Eric Lindsey:
https://linktr.ee/ericlindsey

In this episode, Michael Kharlab walks us through how he balanced a full‑time IT career while launching his real estate business—structuring each deal as its own entity, raising $2 million in days, and even pivoting midstream from Denver multifamily to Florida self‑storage. 🤓🏢

Things Discussed:
Balancing W2 Income & Real Estate Hustle 🖥️🏠
• Steady Paycheck: Michael used his IT salary to qualify for bank financing and build credibility.
• After‑Hours Workflow: He carved out evenings and weekends for investor outreach and deal analysis.
• Batch Updates: Scheduled photo roundups and 15‑minute weekly calls kept investors in the loop without derailing his day job.

Project‑by‑Project Capital Raising 💼💸
• Dedicated LLCs: Each deal lives in its own entity so partners know exactly where their equity sits.
• Warm Investor List: A curated list of a few hundred contacts received concise memos—thesis, returns, equity need.
• Rapid Close: That system hit a $2 million raise in days, bypassing lengthy fund‑style approvals.

Deal Pivot & Key Transactions 🔄🏭
• Denver → Florida: When a Class A multifamily deal lost financing, Michael shifted into a self‑storage facility in Florida, broke ground in May, and underwrote 24 percent projected returns.
• Hotel Junior Debt: He financed a boutique hotel in Lake Placid, NY, helping the sponsor close, improve operations, and deliver solid profits.

Oversight & Time Management ⏱️🏗️
• Weekend Site Visits: Quick inspections over brunch kept his oversight hands‑on.
• Photo‑Based Updates: Investors received clear progress snapshots without micromanaging.
• Concise Calls: Short, structured check‑ins flagged issues before they became problems.

Key Takeaways & Advice ⭐💡
Vet Sponsors Thoroughly: Read all agreements and involve a lawyer to protect your capital.

Master One Strength: Focus on your core skill—capital raising—and say “no” to distractions.

Start as a Connector: Partner with seasoned sponsors, refer investors, and earn referral fees to build credibility.

Form Separate Entities: Maintain transparency and clean accounting with project‑specific LLCs.

Diversify with Real Estate: Leverage tax benefits and stability that smooth out traditional portfolios.

Click On This Link For Our Free E-Book "An Introduction Into Apartment Syndication: https://moonlightcre.com/ebook_download/
Website: Moonlightcre.com
Click On The Link Below To Schedule A Call With Eric:https://calendly.com/moonlightequitiesgroup/scheduled-conversation
Click On The Link Below For More Information About Eric Lindsey:
https://linktr.ee/ericlindsey