Getting Started with Multifamily Deals with Neal Bawa

🎙️ Introduction

In this episode of the Brain Pick-a-Pro Show, host Larry Goins welcomes Neal Bawa, CEO of Grocapitus Investments and Founder of MultifamilyU. Neal, known as the “Mad Scientist of Multifamily,” shares his journey from technologist to multifamily syndicator with over 1,000 units valued at $100M+. He explains the math-driven strategies behind market evaluation, underwriting, and value-add multifamily investing. The conversation covers why data is king, how to spot markets with real rent growth, and why cookie-cutter rehabs deliver the best ROI.

📌 Key Takeaways

✅ Technologist First – Neal approaches real estate as a math and data problem, not a guessing game.

✅ Value of Cap Rates – Small increases in rent or decreases in expenses can create huge equity gains thanks to cap rate multiples.

✅ Cookie-Cutter Rehab – Cosmetic, repeatable $6,000/unit rehabs (flooring, paint, kitchens/baths) are the key to efficiency.

✅ Market Buckets – Neal analyzes cities for flips, price appreciation, or rent appreciation—each requires a different strategy.

✅ Four Critical Metrics – Rent growth, population growth, income growth, and housing price growth determine whether a market is investable.

✅ Avoid Declining Markets – Population-losing cities (like Dayton or Detroit) are high risk despite flashy cap rates.

✅ Macro Matters – Federal Reserve policy, interest rates, and macroeconomics directly shape real estate cycles.

⏱️ Chapters

• 00:00 – Introduction – Larry introduces Neal as a data-driven multifamily investor.

• 01:28 – The Current Real Estate Market – Why Neal views today’s conditions as shaped by Federal Reserve policy.

• 03:11 – Neal’s Background & Portfolio – From tech entrepreneur to $100M multifamily portfolio.

• 08:40 – Multifamily vs. Single Family – Why multifamily offers scalability and investor advantages.

• 13:30 – The Magic of Cap Rates – How $1 of NOI growth can translate into $15–25 of equity.

• 17:44 – Underwriting Deals – Why every property requires 4–8 hours of detailed analysis.

• 22:00 – Rehab Strategy – Cookie-cutter $6,000/unit cosmetic upgrades that double investor returns.

• 28:30 – Market Evaluation Tools – Using Housing Alerts, Local Market Monitor, City-Data, Neighborhood Scout, and CoStar.

• 36:00 – Best Markets for 2018 – Why Utah, Orlando, Raleigh-Durham, and Grand Rapids stand out.

• 42:15 – Markets to Avoid – Population-declining metros like Dayton and Detroit.

• 50:00 – The Four Metrics Rule – Rent, population, income, and housing price growth as the non-negotiables.

• 56:40 – Bootcamps & Education – Neal’s pitch-free MultifamilyU e-bootcamp for investors.

• 01:10:00 – Macroeconomics & Real Estate – Why investors must track interest rates, cap rates, and yield curves.

• 01:20:00 – Closing Thoughts – Focus on data, not hype, and learn to underwrite like a pro.