All Forum Posts by: Nicholas LaGatta

I used BRRRR to grow a "medium" sized portfolio in and around Atlanta that I am very happy with. I haven't bought a BRRRR in a few years, though. When interest rates went up, I was having to leave too much capital in deals in my target market, usually more than my acquisition outlay and rent-ready repairs.

I think BRRRR can still work really well under 2 conditions: 1) you have another substantial source of income and your capital is somewhat renewable (I don't) or 2) you're willing to compromise on your target areas and move to secondary, tertiary, or out of state markets (I am not) or 3) you're very lucky and/or skilled at acquisitions (I am from time to time).

What area did you find a deal that still works?  Let me know if I can ever help with anything.  (I have nothing to sell you)

Hi, Andres.  Real estate + construction is a powerful combination.  What is the strategy for your investment property?  

I think Section 8 is a great opportunity for a specialist or a niche investor.  However, I would recommend not limiting yourself to this one type of property.  If you want high occupancy rates and qualified paying tenants, most quality rentals in metropolitan Atlanta in C class or better areas with tenants placed by a professional property manager should enjoy low vacancy rates and high likelihood of on time rental payments.  

Section 8 does have plenty of red tape, paperwork, inspections, etc. that come along with it, but it's not insurmountable for an investor that specializes in this type of property.  Some of the market rents for Section 8 can be fairly generous, also.  Tenants are also likely to be less picky about the location (busy roads, commercial adjacent, etc.), amenities, finish level, and other criteria, as long as the property meets Section 8 standards and the landlord accepts the program.  However, in my experience, most property managers and private landlords in Atlanta won't accept housing vouchers because they feel they can get quality tenants with reliable rents without the hassle of those programs.  

Due to the niche and specialized nature of Section 8 rentals, I believe there is an opportunity to acquire occupied Section 8 rental properties at a substantial discount to retail market rates or non-Section 8 occupied properties.  The risk of acquiring a tenant-occupied property is also mitigated because at least a portion of the rents are guaranteed by the federal government and the property meets minimum inspection standards (on paper at least).  

As an investor, you will just need to ask yourself what is it about this strategy that attracts you to it and if it's worth the hassle to specialize.  However, the Atlanta metro area has a robust renter pool, a diversified economy, and no shortage of opportunities in the conventional rental arena.  

I'm always happy to hop on a call, if you'd like to discuss in more detail.  I've been working in the rental property space for many years and I'm always happy to share my experience.  

What characteristics of a Section 8 investment interests you as a strategy and why do you think it's the best strategy for you?  

Are you looking for an equity partner in a deal or are you looking to represent clients trying to buy properties?  

Hi, Maurice.  I'll PM you with some recommendations!

Hi, Christopher.  I partner with newer and experienced wholesalers all the time to get their deals sold.  I'd be happy to run the deal with you and give you feedback on it.

Hi, Asia!  I'm an acquisitions agent for a group of investor.  We partner up with new wholesalers all the time to sell their deals.  I'd appreciate the opportunity to review the deals you're working on, give you feedback, and help you get your deals across the finish line.  Let's get in touch soon!

My sense is that the MTR space is about to be incredibly oversaturated with listings.  Does anyone else feel this way?  I feel like this same thing happened to STRs.  They started getting promoted by every guru and podcast as a way to cover higher interest payments, replace active income, etc.  Demand dropped off and people looked for the next big way to increase their cashflow with a similar asset class.  I just don't see how a strategy being promoted at such a mass scale can have a sustained competitive advantage IMHO.  

I might be wrong, though.  Does anyone have a different point of view on the medium and long term prospect for this strategy?  

Hi, David.  I'd be happy to talk to you to see if you'd be a good fit to join the New Western brokerage.  We're the largest investment property brokage in Georgia.  Feel free to get in touch.  Either way, I'd be happy to talk to you about the industry and see if there's any way we can help each other out.