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/
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