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8 January 2025 | 11 replies
Organizational Delays: Section 8 offices are often overworked and understaffed, leading to slow processing times for new tenants, delayed rent increase approvals, and poor responsiveness.Benefits of Section 8:1.Long-Term Tenants: When you get a good tenant, they usually stay for a long time because of the tedious process required to qualify for Section 8 housing.2.Consistent Income: If Section 8 covers most or all of the rent, you typically receive reliable monthly payments, reducing the risk of non-payment (as long as there isn’t a large tenant portion).3.Lower Barrier to Entry: Because properties in these areas are often more affordable, it’s a good way for new investors to break into real estate without needing a large amount of capital.Overall, I’ve seen the good and the bad of this strategy.
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2 January 2025 | 1 reply
I have dabbled in real estate, but never heard of brrrr before now, and transparently never did much research outside of knowing that property ownership was a way to reduce my taxable income.
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2 January 2025 | 14 replies
Contributing to a Solo 401(k) or SEP-IRA can reduce taxable income, and Section 179 or bonus depreciation lets you deduct equipment costs upfront.
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11 February 2025 | 1681 replies
You never skip interest, you just reduce principal by $600 so you pay less interest.
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6 January 2025 | 28 replies
Then ask them what your options are to reduce payments in the future.
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6 January 2025 | 8 replies
Focus on optimizing the current fourplexes (improving rents, reducing expenses).
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1 January 2025 | 12 replies
This takes a little more work, but it's the fairest and reduces the likelihood of tenants that squander utilities.If you choose #2 or #3, there are considerations:Start with an average.
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5 January 2025 | 12 replies
To intentionally reduce the leverage more than required is a foreign concept to me especially in the San Diego market.
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4 January 2025 | 18 replies
It’s hit and miss, really need to deeply understand what they offer, if they will work for you or against you, whether they sign the lease or you (I prefer me, to reduce that lock jn).
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31 December 2024 | 20 replies
The implication is to lower rents requires reducing the cost of ownership.