Retire On Rentals Podcast: Episode 5 - Dreaming Big with Michael Hamilton of Seneca Development

Episode Description:

In this exciting episode of Retire On Rentals, host Nicholas Cook sits down with Michael Hamilton, President of Seneca Development, a Portland-based company specializing in multifamily structures and commercial assets. Michael shares his inspiring journey into real estate, from cold-calling as an "acquisition specialist" to leading large-scale multifamily projects. We dive into Seneca’s focus on multifamily development, their strategies for navigating Portland’s challenging market, and their vision for addressing the housing shortage. Whether you’re an investor, aspiring developer, or curious about real estate, this episode is packed with insights on creating passive income and building a legacy through rentals.

Key Topics & Timestamps:

• 00:00 - Introduction
  Nicholas Cook welcomes listeners to Retire On Rentals and introduces guest Michael Hamilton, President of Seneca Development.
• 01:30 - Michael’s Origin Story
  Michael recounts dropping out of college, sending 100 emails to real estate professionals, and landing a role as an "acquisition specialist" (a.k.a. cold caller) for a house flipper, sparking his passion for construction and development.
• 05:00 - Focus on Multifamily Development
  Michael explains his shift from single-family homes to multifamily projects, inspired by early Airbnb ventures and the scalability and cash flow potential of larger properties.
• 08:45 - Differentiating Seneca Development
  Learn how Seneca targets key Portland corridors, balances inclusionary housing laws, and delivers quality projects in a tough market.
• 12:30 - Site Selection & Portland’s Challenges
  Michael shares Seneca’s “buy box” for choosing development sites, leveraging local expertise, and navigating Portland’s zoning and inclusionary housing regulations.
• 18:00 - Vision for Seneca Development
  A look at Seneca’s 5-10 year plan: staying committed to Portland, contributing to the housing shortage solution, and betting on the city’s growth as a major metropolitan area.
• 22:15 - Balancing Affordability & Quality
  Michael discusses Seneca’s in-house construction edge, non-negotiable amenities (AC, stainless steel appliances, quartz countertops), and picking pockets where affordability and quality align.
• 27:00 - The Development Process
  A step-by-step breakdown of taking a project from concept to completion: site selection, zoning checks, financial modeling, architect collaboration, city early assistance, and the lengthy entitlement process.
• 33:45 - Challenges in Development
  Michael reflects on bureaucratic hurdles, design review inefficiencies, and community opposition, comparing Portland to markets like Newport Beach and Seattle.
• 39:00 - Expanding Beyond Portland?
  Seneca’s contrarian view: sticking to Portland despite difficulties, exploring nearby markets like Oregon City for assisted living, and prioritizing local relationships.
• 44:30 - Build to Hold or Sell?
  Michael explains Seneca’s flexible strategy—modeling for 3, 5, and 10-year horizons, balancing investor goals, and deciding to hold or sell based on market offers.
• 48:00 - Navigating Headlines & Investor Perceptions
  Addressing Portland’s negative headlines, Michael highlights the city’s undersupply (10,000 units vs. Austin’s 100,000) and long-term potential for savvy investors.
• 52:30 - Sponsor Break
  A word from Sleep Sound Property Management, Portland’s top-rated firm for multifamily and residential real estate. Visit sleepsoundpm.com.
• 53:30 - The Seneca Team
  Michael introduces partners Andy Schreck (construction expert) and Bryant, detailing their roles in construction, investor relations, acquisitions, and capital structuring.
• 57:00 - Growth & Nimbleness
  Seneca’s plan to stay lean, avoid rapid expansion, and aim for institutional real estate ownership over 20 years.
• 60:30 - Construction Costs & Tariffs
  Michael unpacks a 5-8% cost increase from tariffs, supply chain nuances, and the role of contingencies (4-10%) in managing risks.
• 65:00 - Interest Rates & Market Conditions
  How Seneca stress-tests projects for rate hikes, navigates construction vs. permanent loan dynamics, and shelves projects when the market doesn’t align.
• 69:00 - Designing for Demographics
  Adapting to remote work and aging populations with work areas, speakeasies, infrared saunas, and proximity to coffee shops—no retail on ground floors.
• 73:00 - Lessons Learned
  Michael shares tweaks like reduced parking (despite demand), curated ground-floor “adult playgrounds,” and spaces tenants can brag about.
• 78:00 - Advice for Investors & Developers
  A key insight: look for imbalanced markets—Portland’s undersupply offers upside, unlike oversupplied Austin. Beware of chasing trends!
• 82:00 - Rapid-Fire Q&A
  • Dinner with one person? Jesus Christ—to chat like buddies and ask about free will vs. divine plans.
  • Whiskey or wine? Whiskey, with a nod to a unique samurai-bottle Japanese whiskey.
  • Parenting lesson? Michael’s parents instilled tenacity—do it right, work hard, and outlast others—a trait he passes to his kids.
• 87:00 - Closing Thoughts
  Nicholas thanks Michael for sharing Seneca’s journey. Stay focused, stay driven, and retire on rentals!

Guest:

• Michael Hamilton: President of Seneca Development, a Portland-native leading multifamily and commercial projects. From college dropout to expert developer, Michael’s built a career on tenacity, construction expertise, and a vision for Portland’s future.

Resources Mentioned:

• Seneca Development: Learn more about their projects (website not provided in episode).
• CBRE Study: Brandon Fresen (name to confirm) on Portland’s worst 5-year supply-to-absorption ratio in the U.S.
• Sleep Sound Property Management: Visit sleepsoundpm.com for help acquiring, operating, and selling real estate.
• Portland Business Journal: Check out the Caesar Division project announcement.

Call to Action:
If you enjoyed this episode, please like and subscribe to Retire On Rentals for more insights on real estate investing and passive income. Connect with us online, share your thoughts, and join us on your journey to retire on rentals! Stay focused, stay driven.