All Forum Posts by: Robert Rixer

What you're looking for doesn't currently exist. It either has to be indicated by the agent on a listing description (rare) or you have to do it the old fashion way which is to call and ask directly.

Anything can be negotiated, especially if you have the clout, the lending relationship or a high down payment. Assuming none of those are true, you likely won't find what you're looking for. 

Lender's upsides are capped so their primary goal is risk mitigation. Giving an operator cash to be spent, as opposed to a reimbursement, opens them up to all kinds of risk (work not being done, owner paying off other debts, buying crypto, etc.)

Effectively no, otherwise everyone would do it and there would be no rent controlled buildings.

If the property becomes vacant there are scenarios you can remove it from rent control. The problem is, tenants who live in rent controlled units rarely want to leave.

It seems to be the same news every year. The media/influencer community will pick up on an anecdotal property that got into trouble and say it's a sign of turbulent times ahead. Mostly the ones getting into trouble are those who overpaid in 2021-2022 expecting rents to keep skyrocketing and cap rates compressing.

@Hunter Duplantis Great to hear congratulations. How long did you have it listed for before you found the tenant?

The biggest hurdle you'll have to overcome is accepting breakeven or negative cash flow at the start. With the down payment you're putting down (assuming it's at best 25%) with current interest rates, you're maybe going to be scraping a couple of backs cash flow on a Class C+ property. 

As a fellow West Aussie who's now living in the US, I can tell you this forum and most of the training/courses you'll see online regarding multifamily investment isn't relevant/applicable in Australia. Negative gearing kills the market for cashflow investors. That and there's a strong bias to developing condos over apartments. I see very little apartment product over there.

You could conceivably start with a 50-story high-rise development. You're only limited by your beliefs.

Practically speaking though, 2-4 unit multi is very very doable starting out, especially if you are willing to owner occupy. I would even say it's easier than SFH because you have in-place cashflow.

I wouldn't get it tangled up with the operations/financials of the property. You can use your platform as landlord to advertise the service, but other than that it's not related. Tying it into rent doesn't make much sense. If you owned the local grocery story, you wouldn't apply their grocery bill to their rent payment.

Nice play, congrats on the deal. Cash is always going to be king, but the delta is definitely more pronounced in higher interest rate environments.