How to leverage rental income (paging fatbastard)

Ocean… can you share more about the OpEx … specifically terms for the mortgages? … fixed rates?

Also, are these Florida properties?

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bought a lot of our properties right before prices and rates went insane. I

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same here. my buy N holds are on pause for now. rates are atrocious and RTV's are in the shitter. Prices are also fn ridiculous so i am not paying an arm and a leg for a .7 or .8 RTV. frick that. all my portfolio is 1.5 to 2.0 % RTVs. i would never buy anything less than 1% RTV.

i have to have certain cash flows at certain price points.

just remember golden rules. a great COC return may not be good cash flow. and a lower COC return could be great cash flow. you have to find the happy medium. low DP great COC but maybe not cash flow. high DP is great cashflow but not that great COC.

I am mainly doing private money lending partnered with another company now to flippers. 10% APR is what i charge of course secured by the RE. way better than watching my 10% dividend payers lose 5 digits in capital due to market fluctuations and now waiting forever for these funds to climb back up.

another strategy for me is paying down what i have to give me even more cashflow and less exposure. sure, it may be dead equity for awhile but you can always tap in and get a HELOC on these to use on other properties, or whatever later, etc.

Just do what is working for you. many ways to make money in RE.

Pretty insane finding deals now a days. Only deals we're seeing really are foreclosures/tax deeds. Don't want to touch foreclosures since you can lose your arse if you don't do the right homework on liens/mortgages. Tax deeds are more bulletproof, but there's not a whole lot of inventory. We're thinking of trying our hand at the cash 4 homes signs

Rough seas ahead for RE … at least in the short term. Tons of layoffs coming, … resumption of student debt payments, ….very poor consumer metrics …. all are going to make a dent in the overall economy, I’m predicting. Couple that with declining rents and restrictive credit policies and we likely have stormy seas ahead …. for both commercial and resi properties.

I’m betting that patience will be rewarded on a lot of my RE desires. I liquidated two 80-acre parcels last year, and I’m thankful that I did ….. as the market rates for both locations are currently lower than last year …. keeping those proceeds for reinvestment later …. mebbe 2024/2025?

“Blood in the streets ….”

Any experiences with section 8? Been thinking about dipping into that world

Charlie Munger recently said: "A lot of real estate isn't so good anymore. We have a lot of troubled office buildings, a lot of troubled shopping centers, a lot of troubled other properties. There's a lot of agony out there." - Charlie Munger

Kevin O'Leary said: "Regional banks. About 20-25% of their portfolio is in commercial real estate and a lot of it is underwater. So there is going to be a lot of consolidation among owners of real estate because they don't have enough equity in their portfolios... So yes, a big correction coming..." - Kevin O'Leary

Elon Musk: "We really haven’t seen the commercial real estate shoe drop. That’s more like an anvil, not a shoe... So the stuff we’ve seen thus far actually hasn’t even — it’s only slightly real estate portfolio degradation. But that will become a very serious thing later this year, in my view." - Elon Musk

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Any experiences with section 8? Been thinking about dipping into that world

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yes i have had some section 8 renters. while i always got paid..... a couple times the money was months late from the housing authority..especially during covid. was like 3 or 4 months late.

they paid me in huge lump sums. so i did get paid. also contrary to popular belief i ONLy had 1 section 8 tenant do a lot of damage to a property. to get it rent ready cost a lot.

i will never rent to section 8 again in that specific property. not after fixing it. as a whole the section 8 experience has not been bad at all. i have 1 section 8 renter now. that is it. no issues.

however my best tenants are NOT section 8. i think it would be ok if you had 1 section 8 on a trial basis but i would not cater to just that group. get 1 and try it out. see if it works out for you. if it goes bad do not rent to them anymore. your experience could be better or worse than mine.