All Forum Posts by: Brad Kremer

I've owned a REIT (O) for years that has consistently paid a monthly dividend and grown year after year after year. I like the REIT approach to RE investing as a complement to buying my own MFRs and SFRs - it seems like a good way to stay in the industry while growing my capital for the next property purchase.

O has been good, but its emphasis on retail space makes me think it might be more exposed to economic developments (tariffs, increasingly online retail) than good ol' fashioned residential real estate. 

I know of Equity Residential (EQR) and Mid-America Apartment Communities (MAA) plus Camden Property Trust (CPT). What others might I be missing? I am wary of anything that is geographically focused on any one part of the country that might be vulnerable to more extreme climate-driven events (i.e., I'm avoiding Florida) 

@Michael Seeker thanks for that quick analysis. I've got some more numbers but not all the details yet, so I'm not entirely sure how the appraiser reached their conclusions. Your numbers are much closer to the ones I've come up with. It will be educational to see how all this plays out over the next few months. 

@Jonathan Klemm thanks for the rec. I've reached out to Moises. 

As part of my father's estate, I have a minority share in a 251-unit residential complex in Louisville, KY. It's in a nice part of town on a large plot of land, consistently at 95+% occupancy, cash flows about $125/mo/door. It was financed as a HUD project 20+ years ago via historical tax credits and receives about 40% of rental income via HUD. We recently had it appraised, and the appraisal came back at $70-80K/door. This seems very low to me considering it appraised at $106k just a couple of years ago. I'm looking for advice on next steps and leads on firms that specialize in this kind of appraisal.

Hi Dominic, 

thanks for the detailed response. I’ve spoken with one credit union but could definitely pursue that option more vigorously. I’ll have to research cross-collateralized loans too - I wasn’t aware anyone was doing that but it makes sense. 

Hi everyone,

I own a cash-flowing duplex in Austin, TX, that I bought 8 years ago when rates were considerably lower than they are today. I've got about $525K in equity in the property, but lenders have told me that I cannot get a HELOC to access that equity for additional purchases because the duplex was financed as an investment - they have said TX law dictates that HELOC can only be used on primary residences.

I don't want to refinance because my current rate is under 5% and doing so ruins the cash flow I've got right now. (gross rents $4900; 8% PM; mortgage+insur+taxes = $3600/mo). How do I access a portion of that equity to fund the purchase of 1-2 more MFR properties in more affordable markets like OH, IN, MI, PA, TN, or AL?