This Foreigner Bought 10 Rental Units in Japan

Quick Overview

Marcus, an American investor from Reno, Nevada, purchased two multifamily properties (a 6-unit building in Fukuoka and a 4-unit building in Kitakyushu) in Japan within three months, achieving yields over 12% (or close to 13%) on the Fukuoka property, which he attributes to finding the deal off-market and leveraging local connections like Matsuo-san for navigating Japanese business and culture, while also growing a separate business importing/exporting vehicles and clothing.

Key Points: Marcus, an American investor based in Fukuoka, purchased two multifamily properties in Fukuoka Prefecture: a 6-unit building and a 4-unit building. The 6-unit property in Fukuoka, built in 1992/1996, was purchased for ¥16 million ($125,000) and yields between 9% and 12-13% (with two vacant units for his office and personal use). The 4-unit property in Kitakyushu, built in 1994, was purchased for ¥13 million ($90,000) and yields about 7% (with two vacant units he plans to rent out or use for Airbnb/Minpaku). Marcus is also building a secondary business importing/exporting vehicles (like his 1996 Subaru Sambar 'beep beep') and clothing, which he plans to finance using the real estate income. The renovation of the first unit involved removing a wall in the kitchen and raising the subfloor over tatami mats to create a solid surface. The properties are located near a university in Fukuoka (Higashi-ku) and the Kitakyushu property is about an hour's drive from Fukuoka City, close to Kokura Station. Marcus credits local connections, like Matsuo-san (Co-Founder of AkiyaHub), for helping him navigate Japanese business and culture, which he found difficult due to language barriers.

Context: The video features an interview between Shu Matsuo, Co-Founder of AkiyaHub, and Marcus, an American investor originally from Reno, Nevada, who has been actively investing in Japanese real estate, specifically 'akiya' (vacant homes) and small multifamily properties outside of major hubs like Tokyo. The interview covers Marcus's investment strategy, the details of his two recent acquisitions in Fukuoka and Kitakyushu, the renovation process he undertook for one unit, and the logistics of running his side businesses in Japan.