Episode 261 - Maui Airbnb to Gilbert Lake House Reverse 1031 — Financial Independence with Mike Neubauer

Oct 8, 2025

54:39

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What if one “smelly” condo became the springboard to financial independence, luxury short-term rentals, and a reverse 1031 into a waterfront Arizona home? In this Invest2FI episode, Craig is with Maui-based investor and former firefighter Mike Neubauer about turning creative strategy into real results. You’ll hear how Mike and his wife Caroline targeted hotel-zoned lockout condos on Maui, bought a $540,000 fixer that “smelled like cat urine,” DIY-renovated on a tight deadline, and optimized pricing to hit ninety-seven percent blended occupancy and 10,000–12,000 monthly revenue.

Mike breaks down the numbers behind a $ 7,000 net cash flow, then explains selling that unit for $ 1.365 million and using a reverse 1031 exchange to acquire and upgrade a $ 1.0 million lakefront home in Gilbert, Arizona, with a $ 400,000 remodel. What’s for you? A repeatable playbook for markets, zoning, lockouts, pricing levers, and exchanges you can apply now.

PODCAST HIGHLIGHTS:

[04:32] Mike’s background in photography and graphic design

[05:56] Earning his first passive income through Amazon book royalties.

[06:42] A firefighter mentor in Maui introduces him to short-term rentals.

[07:15] Mike reflects on the fire tragedy and retiring before 2021.

[08:53] He discusses building an ADU to house hack their first property.

[10:58] Strategy focused on Maui lockout condos with hotel zoning advantage.

[13:45] He details buying a $540k condo and budgeting $40k renovation.

[15:29] Handyman backed out, forcing Mike to learn DIY via YouTube.

[22:41] Occupancy soared to 97%, generating $10–12k in monthly revenue.

[23:19] Net profits hit $6–7k monthly after all operating expenses.

[25:08] They sold the Maui condo for $1.365M, using reverse 1031.