The Multifamily Real Estate Experiment Podcast
“Multifamily Real Estate Investing for the Career Professional.” Join Shelon "Hutch The Marine Investor" Hutchinson who talks to military veterans and real estate professionals about the results of their journey and multifamily real estate experiments. Each week, Hutch discusses Multifamily Real Estate Investing for Career Professionals and military veterans to help you build wealth and financial independence. Questions about Multifamily real estate investing are systematically dissected as your host works through observations and data to answer the week's question.
The Multifamily Real Estate Experiment Podcast
MFREE 117 Trailer # 5 with Kevin Bupp: Why is consistent cash flow more important than a rising market?
In this episode, Kevin Bupp shares the hard truth about what went wrong early in his investing journey. His portfolio in Florida was built mostly on appreciation, not durable cash flow. And when the market turned, it turned fast.
Rents dropped. Jobs disappeared. Occupancy slipped. Even with low leverage and built-in equity, many properties lost 50 to 60 percent of their value in one year. It wasn’t sustainable.
Kevin explains how that experience reshaped his entire approach. Today, it’s all about conservative underwriting, real stress tests, and making sure properties can stand up to worst case scenarios.
This one is a wake-up call for anyone still playing the appreciation game without a backstop.
#RealEstateTruth #CashFlowOverHype #RiskManagement
*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*
Thank you to all of our listeners!!! We would love to hear from you!!!
Email me at:
hutch@hsquaredcapital.com
*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*
Visit our website to find out more:
www.hsquaredcapital.com
Join our Facebook Group:
The Multifamily Real Estate Experiment
Follow us on Instagram:
@hutchthemarineinvestor
Florida's a very cyclical market. It goes to really high peaks and it goes to lows. and that's typical of a lot of the coastal markets. while I made some cash flow, it wasn't durable enough to withstand, negative impacts that occurred, during that period of time. A lot of folks say rents never go down. That was not the case. there were, periods of time where we had, oversupply of homes here in Florida, and so that, that impacted our rental portfolio. In addition to that, when they stopped building new homes, a lot of the jobs went away. There weren't as many, the population, slightly decreased in Florida. Folks had to move other places to find work. And so we had challenges, maintaining occupancy. And so once you start stacking all the challenges, maintaining occupancy, lowering our rents, offering concessions, we had challenges being our debt service. And in addition to that, the, values of these properties, even though we had low leverage points, we had, built in equity, a lot of them within a period of a year. We're upside down in value, even if our leverage point was in the 60% range, so we were pretty conservative generally speaking. But, you know, we lost nearly 50 or 60% of the value in a period of a year. that value has since come back, but we didn't have the durability to weather that storm,