All Forum Posts by: Jim Macedon

I don't think there's any way that BRRRR can work in my market. Cash flow is terrible in Austin. Everything is an appreciation play. When you refinance you'll be negative cash flow.

Also, the strategy basically calls for you to load up on as much debt as you possibly can.  I notice that this site is very pro-debt.  It's basically if you have any equity in a property you're doing something wrong.  It's like risk doesn't exist.  I wonder how many of the people that espouse this went through 2008.

How is everyone doing on this fine Wednesday? 

I'm currently building a 4plex of four townhomes.  It is scheduled to be completed on March 15.  I have also decided to market my own units without the assistance of a realtor for the first time.  I have other properties, but have always used a leasing agent in the past.  I figured the long timeframe of construction would be the best chance to figure things out on my own. 

I'm now about a month away from completion and I still do not have any unit leased up.  I've had maybe 4 or 5 people show interest, but none of those met my requirements.

I'm torn between two ways of looking at this, so I'm seeking input from those with experience in new construction rentals.

On the one hand I'm not too worried.  The units still can't be shown, I can't even offer pictures of a completed unit, and it's still a month away from availability.  I've been told that it is very difficult--virtually impossible--to get someone to buy or lease something without seeing it in a completed state.

On the other hand, though, I can't help but be a little concerned.  I put a lot of effort into marketing--Google ads, my own website, and of course all the real estate sites, plus offering incentives for pre-lease.  Through my own website and Google ads, I actually built a waiting list of about 15 people, but none have actually applied despite my offering pre-lease incentives.  My books say that pre-leasing is a thing, although mostly in reference to large apartment complexes. 

Is this normal and I can expect more interest once I can post good pictures and offer showings, or is it time to start re-thinking my pricing or maybe even my decision to go it alone?

Hmmm, you're right.

I think you'd probably have to go into more detail than you're willing to here to explain this to me. My numbers and calculations indicate that they have been good investments, so I think there is something fundamental I'm missing here.

Something to think about for sure. A lot of that value is from appreciation though. For example, one of the SFs was purchased for $147k. And the 4plex cost $550k to build--I'm just hoping it appraises higher. $600k is probably more realistic. 

But yes, there is definitely dead money that I would like to use. I have thought about selling, but I like to increase my holdings. 

I'm pondering my next move.  I just took on a lot of debt.  On the other hand, I have some equity I could access.  Not sure whether to:

A. Reduce debt.

B. Stand pat on debt and wait to build up another down payment.

C. Access equity for more expansion (more debt).

Here's my situation.  I have 2 single family rentals and I just built a 4 plex.  One of the SF is paid off and is worth about $250k.  The other SF is also worth about $250k, but still has $80k on the mortgage.  The 4 plex will be complete in March and I'm hoping to have more than 25% equity, but I will have at least the 25% down payment requirement.  SFs get $1675 and $1600 a month respectively.  Projected total rent for the 4 plex is $5600 a month.  Between my wife and me, our W2 income is about $120k.

What do you advise?

Sorry, technical problem caused a triple post.  Please delete.

Why would a landlord get thanked for service to the country?  Do you hate military people because they make you feel weak or something?  I really don't understand what you're getting at with these digs at military personnel.  Of course everyone has to pay for the services they receive.  No one disagrees with that.  But then you tack on absolutely idiotic statements like why don't people thank landlords for their service.  SMH.

Yeah, the people that risk their lives for their countrymen are exactly the same as you.  Not to mention there are laws on the books that mandate certain exceptions for military members.

So many people make complete fools of themselves on this board trying to sound like a harda$$ Gordon Gecko clone.  This is almost as bad as the guy that made a whole thread to brag about evicting people on Christmas.

Do what you're going to do, but please stop with the "help" nonsense.  No one is buying it, and it's insulting to the potential seller's intelligence to think they would.