It doesn’t appear it was his intention to pay them back anytime soon.And in the example I gave about the overleveraged Subto that went bad, and the “Solution” was to sell to avoid a foreclosure on a Due on Sale, few if any of the Subto students can bring in $43,000 to closing, so it’s likely the property would go to foreclosure and the gator lender in 2nd position would lose most if not all of their money.

However, you could convert the rental property into your primary residence, live there for at least two years, and qualify for the Section 121 exclusion to avoid up to $250K (single) or $500K (married) in capital gains, though depreciation recapture remains taxable.

If you ever need insight on Tampa or Central Florida markets, or just want to brainstorm ideas like the BRRRR strategy you mentioned, feel free to reach out.

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

I have started raising rents to market rent one unit at a time to avoid a total tenant turnover all at once.

@Yixin Huang we use a property management software which keeps the communication centralized and updates them on status. 

If you are building to sell and your profit margins are higher for the larger units, that may be a good argument for building bigger.My rentals are in central and east Phoenix, so we have a lot of young professionals and small families we rent to. 

Just one of the many hiccups that can occur when a buyer doesn't work with an experienced multifamily broker that understands the potential pitfalls, how to avoid them, and most importantly, what a good deal looks like.Happy to chat further if you have questions Kyle!

Avoid competition and bidding wars.

You can hear real-world examples of how others have built their investment portfolio and (hopefully) learn to avoid their mistakes.4.