Nice to meet you.
I am “Yutaro Sotaro”.
I work as a company employee while sharing information about real estate investment.
I currently own 4 condominium units and have about 7 years of experience in real estate investment.
Over these 7 years, I have had both good experiences and experiences that did not go as planned.
There was a time when I sold 4 units and ended up with about 4 million yen in hand.
On the other hand, after reinvesting those funds, I experienced a monthly deficit of about 80,000 yen.
In this post, I would like to introduce myself, explain why I started real estate investment, and share what I have actually experienced.
I hope this will be helpful for those who are thinking about starting real estate investment.
1. Why did I, a company employee, start real estate investment?
There are two main reasons why I started real estate investment.
The first was that I wanted a source of income other than my salary.
The second was that I wanted to aim for a life that does not depend on a company in the future.
When working as a company employee, your monthly salary becomes an important foundation for your life.
However, I also felt anxious about the future in a situation where my only source of income was my salary.
That is when I became interested in real estate investment.
I thought about whether I could create a source of income other than my salary through the mechanism of rental income.
However, when I actually started, it was not as simple as I had imagined.
2. Managing 4 condominium units in the first 5 years
Since starting real estate investment, I have owned and managed 4 condominium units.
Then, after about 5 years of operation, I sold all 4 units at once.
After the sale, once the loan balances and other settlements were cleared, about 4 million yen was deposited into my account.
What is important here is that this 4 million yen does not represent the net profit of the entire investment.
You cannot determine the total profit of an investment without including the initial capital used at the time of purchase and the income and expenditure over the 5 years.
Even so, being able to keep a lump sum of cash on hand from the sale was a significant experience for me.
I realized that in real estate investment, not only the monthly rental income but also how much it can be sold for in the future is also important.
3. After the sale, I purchased 4 more condominium units
After selling the first 4 units, I used the remaining funds to purchase 4 more condominium units.
However, a period where things did not go as planned began from here.
The monthly balance resulted in a deficit of about 80,000 yen.
Even with rental income, after deducting loan repayments and various expenses, I was in a state where money was going out every month.
A monthly deficit of 80,000 yen means 960,000 yen per year by simple calculation.
If it continues for 2 years, that is 1.92 million yen.
In fact, the approximately 4 million yen I had on hand decreased to about 2 million yen.
Even if you own 4 real estate units, it does not necessarily mean that your monthly balance will be in the black.
“Having rental income” and “having money left over” are different things.
I realized this reality once again.
4. Changes in balance due to the end of the vacancy guarantee option
Now, about 2 years after the reinvestment, there has been a change in the balance.
Because the vacancy guarantee option I had been using ended, my monthly expenses decreased.
As a result,
the monthly deficit of approximately 80,000 yen decreased to a monthly deficit of approximately 40,000 yen
.
This means the monthly deficit has been reduced by about 40,000 yen.
However, this does not mean I can rest easy.
With the loss of the vacancy guarantee, I must now also consider the risk of reduced income should a vacancy occur.
Furthermore, the monthly balance remains in the red.
In real estate investment, actual cash flow can change significantly depending on contract terms and optional costs.
I feel it is important to check not only the property price and yield, but also what the contract terms are.
⑤ Reasons why I continue to invest in real estate despite this
Currently, the four units I own result in a monthly deficit of about 40,000 yen.
Even so, my policy for now is to continue holding them.
The reason is that I am looking ahead to a future sale.
In real estate investment, the final outcome depends not only on the balance during the holding period, but also on the sale price and the remaining loan balance.
Of course, there is no guarantee that I will be able to sell at my desired price in the future.
There is also a possibility that the sale price will decrease.
Therefore, I am not taking the monthly deficit lightly.
Considering the balance during the holding period together with the future sale.
This is my current investment policy.
⑥ What I want to tell those who are about to start real estate investment
Having experienced real estate investment for about 7 years, there is something I want to convey to beginners.
That is,
“Please do not judge a property solely by its yield or rental income.”
That is what I mean.
Real estate investment has the appeal of earning rental income.
On the other hand, there are various burdens such as loan repayments, repair costs, management fees, and vacancy risks.
While I have had the experience of keeping a lump sum of money on hand from a sale, I have also experienced monthly deficits after reinvesting.
That is precisely why I want those who are just starting out to thoroughly check the numbers before purchasing.
In this note, I will share the following themes while incorporating my own actual experiences.
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Basic knowledge that real estate investment beginners should know
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Points to check when choosing a property
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How to think about financial planning and loan repayment
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How to check monthly income and expenditure and remaining cash
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Things I felt and learned through actual operation
I would like to convey not only the good aspects but also the points to be careful about as clearly as possible.
⑦ I am also publishing articles for beginners!
I am publishing free articles for those who are interested in real estate investment.
📘 5 things to check before purchasing a property
“Is it safe if the yield is high?”
“Is it okay if the bank provides a loan?”
For beginners who have such questions, I have summarized the points you should check before purchasing a property.
https://note.com/quirky_lemur4514/n/n6aa89ece522f
📘 3 Numbers You Want to Learn First in Real Estate Investment
I explain yield, cash flow, and personal funds using concrete examples.
This is an article I would like even those who are not good with numbers to read.
https://note.com/quirky_lemur4514/n/nf4ec445cf757
⑧ For Those Who Want to Learn More
I have also published a paid guide for beginners that summarizes property selection, financial planning, and income/expenditure judgment.
[For Beginners] Real Estate Investment Property Selection, Financial Planning, and Income/Expenditure Judgment Practical Guide | Includes 6 Major Bonuses
Price: 4,980 yen
This content organizes the mindset you should check before purchasing a property, tailored for beginners.
If you are interested, please take a look here.
https://note.com/quirky_lemur4514/n/nf76a9bc43286
In Conclusion
It has been about 7 years since I started real estate investment.
So far, I have experienced both having a lump sum of money left in my hands from sales and struggling with monthly deficits.
I am still learning while continuing real estate investment as a company employee.
I hope this note will serve as a reference for those who are about to start real estate investment, even if only a little.
I look forward to your continued support!
Yutaro Sotaro
*This article introduces the author’s personal experience and does not recommend any specific investment method or guarantee future profits.
