All Forum Posts by: Adam Meckler

Way to get in the game!

Hey everyone! I am new to investing in real estate, sort of, and a long time listener to BP pod, but first time being on the forums. I'm a professional musician and have dreamed of being in the real estate game for many years while I read books and listed to pods on the subject. The dream for me is to eventually free up my time and have enough income from real estate to be able to pay for my music projects, travel, etc. 

We've had an Airbnb out of our primary residence basement for 2.5 years. That space beats our mortgage on average, which is rad. We used a HELOC on our primary to purchase and begin renovations on a duplex nearby, and just this month closed on a fourplex that has a couple units rented, and a couple that need full demo/flip (which is now in progress).

I'm taking some big swings and really having a blast doing it. Just wanted to say hi and that I appreciate this platform and all I've learned listening to the pod that empowered me to make these moves. I'm sure I'm making some mistakes but I'm in the game and having a blast. 

We're investing in the Upper Peninsula of Michigan. I'm a tenured professor in the music department at Michigan Tech University and lead my own bands and play with some folks it's possible you've heard of. 

Woot!

Hey all! Im new to the game. Have had an Airbnb out of our primary residence basement for 2.5 years and bought a duplex in November after taking out a HELOC on our primary to use for the down payment and some renovations.

We also recently closed on a fourplex as a partnership with a friend. Used enirely OPM to buy this one, and borrowed money from a family member who is in commercial real estate to do the renovation. (I have experience raising money as a professional musician so this came somewhat naturally to me). 

The duplex is rented well under market rate ($600 on each side. 2-bed apartments), and the fourplex has two rented units on the lower half well under market rate ($475 on one side, $600 on the other also 2-bed apartments). 

Market rents in this area for those size units are closer to $1,100 (a little more, actually).

Previous owners owned these spaces for a very long time, so their taxes were low and those rents were manageable for them. These rents do not cover mortgage/insurance/taxes as it stands now. Plus, we're investing heavily in each property with the intention of doing a cash-out refi within two years of owning each one. 

OKAY. That's pretty much it. Any advice on how to raise rents? 

I was planning to send letters explaining the higher cost in taxes, market rents in the area, and then offer a gradual raise to meet in the middle somewhere. Yeah? No? Appreciate you all!!