All Forum Posts by: Axel Meierhoefer

 I might but how do you get wife and kids to be willing to live in a construction zone for two years

 Carlos, main reason is that I don't know them and I follow a rule to only invest in things I understand

Good point. Maybe ARM - that can be considered traditional

I am a residential real estate investor who has always believed in the SFR market up to fourplex. Yes, I have started pivoting towards built-to-rent (BTR) in 2022 and going forward. Still, the main goal of my investing and that of my mentoring clients is cash flow to generate a passive income flow that ultimately leads to reaching the Time Freedom Point at which one has the choice to exchange time for money (JOB) or live your passion regardless if it makes any money.

In 2022 we have all seen the FED increasing interest rates and along with it, mortgage interest rates have gone up a lot.

I wonder what the BP community thinks about the future of interest rates, especially for financing our residential property investments and what you would do or accept regarding cash flow. In the past we used the 1% rule, which is increasingly hard to meet. For BTR, I am willing to accept performance above 0.8%, but what are you willing to accept and where do you think interest rates will be in 6 months, 12 months, and 18 months from now?

Just for those of you who wonder, I have toyed with interest-only loans or ARM financing, but so far haven't done it yet. Maybe you will comment on that too as part of what you're willing to accept to maintain cash flow/performance.

@James Wachob Thanks for commenting on my post. You are right. Those are great helpers for cash flow :-)

@Pretty Khare Yes, its true that lead times are long in that area due to the slow permitting department and the storm issues. There are ready-to-buy properties in the Jacksonville and Orlando areas if you don't want to wait. I can refer you if you like.

@Peter Davis Ohh, yes, I totally forgot about that and if taking statistics into account, now that we had the storm we should be ok for a number of years.

I can also saw and have confirmation from several agents in the area that houses built after 1999 were minimally affected by the storm because they were built with solid concrete block walls and to much higher standards. Houses that are built now are even more secure.

When I spoke to some of the agents locally to find out if any damage occurred to my property, they all described the aftermath of the storm as a huge renovation project for the area, that will probably result in a much more up-to-date infrastructure

@Lindsay Davis Thank you for your support. Some of my tribe members have become Spartan clients based on my referral to Maureen. Alabama and Tennessee still offer some good value and I believe the hubs that have commitments from very large manufacturers to invest will remain strong rental markets, even if we get a recession for the next 18 months.

@Ruchit Patel Yes, I am happy to tell you. Right now one of my built to rent is in Memphis and one is in Florida near Cape Coral. I have also been looking at places around Austin, Texas but prices and taxes are a lot higher. There are more locations that could be interesting but as an out-of-state investor, we also always need to make sure we find a good turnkey provider or property manager.

 Thanks for your comments Brian. If I ever can be of help or provide any of my resources, feel free to DM me.