Interview: Multi-Million Dollar Portfolio Success

Interview with Robert Chen: From Zero to $50M Portfolio

We sat down with Robert Chen (no relation to our CEO), a real estate investor who built a $50 million portfolio of rental properties over 12 years using a combination of conventional and DSCR financing.

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Q: Robert, thanks for joining us. Can you start by telling us about your real estate journey?

A: Absolutely. I bought my first rental property in 2012—a duplex in Sacramento for $180,000. I was working as an engineer and used a conventional loan with 20% down. That one property changed my life trajectory.

Q: What made you realize real estate investing was the path for you?

A: It was the math. When I saw that my tenants were essentially paying my mortgage while I built equity, it clicked. Within a year of owning that duplex, I was hooked on the idea of scaling up.

Q: How did you grow from that first duplex to your current portfolio?

A: The first five properties were all conventional loans. But by property six, I hit a wall. My debt-to-income ratio was maxed out, even though I had great cash flow from the rentals. That's when I discovered DSCR loans.

Q: Tell us about your experience with DSCR financing.

A: It was a game-changer. Suddenly, I could buy properties based on their income potential rather than my personal income. I went from buying 1-2 properties per year to 5-8. DSCR loans allowed me to scale at a pace that would have been impossible otherwise.

Q: What does your current portfolio look like?

A: Today I own 73 units across 42 properties:

• 28 single-family homes
• 10 duplexes
• 4 small apartment buildings (4-8 units)

The total portfolio value is approximately $50 million with about $18 million in equity.

Q: What's your average DSCR across the portfolio?

A: I target a minimum of 1.20 for any new acquisition. Across the entire portfolio, we're averaging about 1.35. That cushion is important for handling unexpected expenses and market fluctuations.

Q: How do you find your deals?

A: It's evolved over time. Early on, I used the MLS exclusively. Now, about 60% of my acquisitions come from:

• Off-market deals through relationships
• Direct mail campaigns
• Networking with other investors

The other 40% still comes from the MLS, but I'm very selective.

Q: What's your due diligence process?

A: I have a strict checklist:

Market Analysis: Employment growth, population trends, rent growth

Property Analysis: Condition, capex needs, rent potential

Financial Analysis: Must meet my DSCR and cash-on-cash requirements

Exit Strategy: Multiple exit options if needed

I probably look at 100 deals for every one I buy.

Q: What are your criteria for a good DSCR loan deal?

A: For me to move forward on a property, it needs to meet these minimums:

• DSCR of 1.20 or higher
• Cash-on-cash return of 8%+
• Located in a market with job diversity
• Good school district (for tenant quality)
• No major deferred maintenance

Q: What mistakes have you made along the way?

A: Plenty. My biggest mistakes were:

Underestimating renovation costs on early value-add deals

Self-managing too long instead of hiring professionals

Being too concentrated in one market early on

Not building reserves fast enough

Each mistake taught me something valuable.

Q: What advice would you give someone just starting out?

A: A few things:

Start now. Don't wait for the "perfect" market conditions.

Buy for cash flow. Don't count on appreciation—it's a bonus, not a strategy.

Build your team early. Property manager, contractor, lender, accountant—you need all of them.

Use DSCR loans strategically. They're perfect for scaling once you've exhausted conventional options.

Think in decades, not years. Real estate wealth builds slowly, then suddenly.

Q: What's next for you?

A: I'm working on transitioning into larger commercial properties—small apartment complexes in the 20-50 unit range. The DSCR principles still apply, but at a larger scale.

I'm also passionate about teaching others. I do some coaching and am working on a book about building a rental portfolio.

Q: Any final thoughts for our readers?

A: Real estate investing isn't complicated, but it requires discipline. The fundamentals never change: buy properties that cash flow, take care of your tenants, and think long-term.

DSCR loans are an incredible tool for investors. They've allowed people like me to build significant wealth without the limitations of traditional financing. If you haven't explored them yet, I'd strongly encourage you to learn more.

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*Ready to follow in Robert's footsteps? Calculate your DSCR and see if your next investment property qualifies for flexible DSCR financing.*