All Forum Posts by: Andrew Syrios

Quote from @Nathan Leger:

Quote from @Andrew Syrios:

Build to rent was a great way to go for a while, especially if you could find cheap land in good areas. In some cases, I think you could probably BRRRR out of it, but in this higher interest rate environment, BRRRRing a build to rent would be very difficult indeed.

this is my intent. I found 3 acres of land that was improved with a 2 car garage. I'm converting the garage (720 square feet) into an ADU, and building a 2-family adjacent to it .

I think that has potential (although you will definitely want to check the numbers carefully). Building duplexes (especially with an extra ADU) is going to have a lot more cash flow potential in this interest rate environment than SFR.

Welcome to BiggerPockets Gail!

Build to rent was a great way to go for a while, especially if you could find cheap land in good areas. In some cases, I think you could probably BRRRR out of it, but in this higher interest rate environment, BRRRRing a build to rent would be very difficult indeed.

Welcome aboard Claire!

Welcome aboard Abel! There's a lot of advice to give for new investors. Probably the best place to start is Brandon and Josh's book How to Invest in Real Estate: https://www.amazon.com/How-Inv...

Who knows where rates could go. It's highly likely they'll stay high throughout all of 2023 and 670 is plenty for FHA. I would start looking and see if you can find a good deal. Just don't push it in a market like this. But the type that waits for a better market typically just keeps waiting and waiting and waiting...

If the unit has been advertised at the previous price and then you increase it to their voucher after they apply, well, I think you're skating on very thin ice even if the law technically allows it (which I am by no means confident that it does). 

Welcome aboard Justin and best of luck investing!

Quote from @Nicholas L.:

@David Derus

as @Andrew Syrios said very little downside if you hit a home run

the better question is "what are the challenges" and there are many - especially in today's environment:

-it's very, very tough to find good deals.  everyone is looking for them.  off-market sellers are getting multiple offers.

-contractors are booked months or years out.

-materials are expensive.

-interest rates are high.

all of this puts pressure on the deal.

Exactly my thoughts other than I don't think you need to hit a home run for it to be pretty sure fire. A full BRRRR is a very good deal, but not so rare as to be termed a home run. Probably just a semantic disagreement, other than that I think we're on the same page.

Welcome to BiggerPockets Ancil!