All Forum Posts by: Enrique Huerta

Find out why they only want a 6-month lease

Look into market trends to see if rents are growing/declining in your area and renew them accordingly. If rents are growing, a small increase may be warranted. If rents are declining, to keep the property full at current rates I would keep the rate flat.

If they're good tenants, charge them a short-term rental premium but dont' give them a huge increase for the 6-month lease.

In these cases where it's a 1:1 tenant/landlord renewal, it's best to communicate with each other and reach a win-win

A lot of smart people think interest rates will go back down in late 2023 or early 2024. Probably a solid bet given that the elections will be occuring in 2024. But no one I know thinks they go back down to pandemic-era levels...

Rather than do a 5-year lockout, can you negotiate a step-down prepay? Some banks offer more flexible options than just a 5-Year No-Refi Option. To provide a more thoughtful analysis, it would be helpful to know the difference in terms between your options. What is the spread? Leverage? Costs? 

If you have a long-term perspective in real estate, I would dollar-cost average and continue to buy. If you were buying in the last 2 years, you were paying increasingly higher prices so buying today would be a better play overall. It's not about being on the sidelines, but instead it is about finding a motivated seller, negotiating a solid price, and structuring the financing so it remains accretive to the overall investment.

I'm curious, @LaMancha Sims, are you on the sidelines or still buying? And why?

I like the Macon and Warner Robins areas. They seem to be slowly but surely growing and offer stable employment. With that said, it’s certainly a workforce housing market and certain areas have high crime. If you can pick up properties with a good basis and decent cap rate (don’t fall prey to low cap rates in this area), it’s worth a buy.

If you have specific questions, I am happy to elaborate. 

I second @Aaron K., I'd rent it out and buy another property. ADUs haven't added much value to homes but they help with cash flow. Nevertheless it sounds like you will have a solid monthly cash flow of $1k/Mo as-is.

The Compound Effect by Darren Hardy

This is very general. What advice are you looking for? Areas to invest in? Property type to buy? What specifically would help you get started?

City Gate and Wehner Multifamily are two that come to mind.

Welcome @Brandon Shaffer, The Springs is a great region to invest in. We acquired a property there in January 2020 and we are looking for the next one :) Best of luck to you on your journey. Feel free to message me if you have any questions or need help with anything.

@Neil Polehn, I would invest directly or passively in value-add apartment communities. They often have in-place cash flows and solid long-term upside as an asset class, in general. Once you complete renovations and operate the asset better, you will really put the pedal to the medal and juice the returns on equity.

What do you need the most help with? Deal Flow? Picking a market? Strategy? Please let us know and I think we can contribute more meaningfully to help you out!