All Forum Posts by: Alon A.

Section 8 pays "market rents" that are UP TO the amounts as posted on their sites as set for each county / zipcode by HUD. So, what needs to be determined is what are market rents for your location? Would you be able to easily rent the property in question to a non-voucher holder for $4,221 to $4,921? Or would a non-voucher / market rate tenant pay $2,800 to $3,000? If this is market rate for a similar property as yours at this location, then Section 8 is under no requirement to pay more, even if their website shows a higher potential maximum rent.

It is something new ? It means it’s not really qualify , what property can get 5K if it’s not market rent lol

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Hey guys

I started to do section 8 and i have a question

lately i feel section 8 no paying according to the table sheet they have online in government website, they having appraiser do comps and paying as regular long term rental maybe a bit more but not tremendously. i called them , emailed and all but that is their strategy now , so i asked why they put wrong info on website, seems like they want to lure Landlords lol ..

for example

https://dhantx.com/wp-content/uploads/2024/01/FY24-Payment-S...

You can see zip code 76227 with 5 bedroom showing $4921 (less bills $500) so its $4221.

but actually people getting $2800-3000 how come it is ?

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Hey guys

What do you think in general for STR in both of this cities

I came back from Miami and what ever going on there it's crazy , I also like Austin area alot but I know more regulation for STR there , in general I think the rental market in Austin it's not good

Median rent is 2-3.3K and house pricing is 400-700K so it doesn’t worth for long term investment and cashflow , maybe only for appreciation. Unless I’m wrong.

I thought maybe to buy apartment in 400K range in Miami in some tower and make airbnb from this, I know there is huge competition but a lot of people always coming there for vacation

what is your thoughts ?

A bit on my self

I have 3 singles in Dallas Forth-Worth area & 1 single Tampa area

I sold 2 flips in Austin, TX

In DFW, I’m doing section 8 , I am getting properties with hard money loan , remodel them, and then re fi them for 30 years , I put around 45-65K for each property
I have 4 properties total that cash flowing $300, $500, $1000 (section 8) , $250 per month after all taxes, expenses , insurances , mortgages ..

But I want to cash flow more somehow in thousands

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Hey guys

I am investing in Dallas Forth-Worth & Tampa area

Long term rentals and I’m doing section 8 also , I am getting property with hard money loan , remodel them, and then re fi them for 30 years , I put around 45-65K for each property
I have 4 properties that cash flowing $300, $500, $1000, $250 per month

I wanted to get into Multi Family - 4 plex, 6 plex and up even 8-12 units as first deal. in know also it’s 25% down payment so it’s more down then the hard money loan method I’m using.

I know some multi is cash flowing more , but I’ll need property managements since it’s to much manage by yourself.

I’m looking in those areas:

Killen & Temple , Texas

Corpus Christi , Texas

Lubbock , Texas

McAllen , Texas.

Any thoughts on this areas ? I know I can find there nice deals of 4 plex in 300K but they not cash flowing that much. They will most likely cash flow like the singles.

Where you thing I should look to invest ? and if you can help me a bit with how many units and what to look at

thank you

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Quote from @Allen Duan:

Remember, in the videos people like to share their best case scenarios. That may be their highest value booking ever, not the average the rent for. We typically rent for 50-100% higher than LTR rates here in Los Angeles. But every market is different.

Got it , also it depends on level of remodel and demand in area , I saw houses renting pretty well

Another questions , What you expanses in Mid- Term addition to the PITI

Utilities , WiFi , Mowing services ?

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Quote from @Zachary Deal:

Agreed with Andrew, it really depends how the MTR is set up and what relationships (with insurance relocators for example) the owner has. Generally, I think the boost for MTRs is most markets is not 3x to 4x and is likely closer to 2x (or less)

So how in pod cast everyone say x3 and x4

Bills another $400-500 monthly with WiFi

if my PITI is $2500

so it’s $3000-$3100

So if I get on this house $4500-5000

It’s $2000 monthly cash flow ?

It is worth it ?

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Quote from @Caroline Gerardo:

You say you are doing zero work or improvements. How are you showing scope of work to be completed? There is no ARV. Doesn't make sense.

Appraisers use comparable sales- a closed sale in past three months with a loan that is similar square footage, room count, location, neighborhood. Tell me the address in a DM and I can give you an AVM (automated appraisal which will be ballpark of what appraiser will write).

If the market value is $315 why are comps $100 more?

Thats what I said that usually I do. But that’s my question over here . In this case I don’t need to do any remodel

I just can get the house in much lower price

Market value is 400K +

but the house just not selling from some reason

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Quote from @Caroline Gerardo:

how did you calculate the ARV?

Hard money doesn't do 100% financing

They sending appriser with the scope of work given to them and to the appriser and then he go and check and do ARV calculations

based on that they give me the loan amount

I have good relationship with them , and yes they do 100% finance if loan covers all remodel + purchase price

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Hey guys

I have a question that I have and I can’t figure it out

I saw house on market that I can get it in 315K it’s fully remodeled , everything is new flooring , paint , kitchen .. top to bottom

the comps sold around 470k, 420K , 415K

Let's say 430K ARV , hard money lender give me 75% of the appraiser hr will send.
So it will be 322.5K. , it means the loan covers all the house, and I do not need any remodel to the house so it’s 0 remodel.
Means that my out of pocket will be only the closing cost of the HML (points , pro rated taxes , interest , processing fee)

Let’s say around 10K

so it means I can get a house in 10K and then just re finance right after ? because the 2nd appraiser also will be on 430K since it’s already remodeled and the equity is there .

I never got a house that already remodeled & I don't know how works with hard money lenders in those cases, I'm afraid that if I do not do any remodeled the appriser will come in lower ARV and then my out of pocket will be higher , any thoughts ?

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Quote from @Joseph Stern:

I can only speak to Tampa but I have no problem finding nurses for my properties. I would stick 5-7 min from the hospitals. Tampa has plenty of health care opportunities and if you're close by the hospital you will be able to source a tenant.

This just depends on your bandwith, I have done both. Like you I have took on very heavy rehabs and purchased via hard money. I personally am licensed so sometimes I buy a stable property on the market that is furnished, but I get a 3% commission and 2% seller credit at closing, so this cuts my closing costs by 20-25k sometimes. That way I can buy something more stable if I don't have the time to commit to a rehab, you can negotiate a seller credit and do the same. Otherwise I would go based on the deal, if you come across the lead thats worth the rehab go for it, if you come across something that has less forced equity upside but is in a fantastic growing location next to a hospital, I'd jump on that as well.

Hey
you have a properties that all time in every month booked ?

How much usually you rent them yearly

I have property in Tampa that is 2280 per month and my mortgage is 1900 with Insuarnce and taxes .. so I’m cashflow $380 per month.

If you can share honest examples how it’s helping to rent to increase I heard x3 and ,x4 but I can’t believe it lol it’s a lot more . What I see online that people publish is maybe $3200 per month but not $6000 per month if it make sense

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All Forum Posts by: Alon A.

Alon A. has started 42 posts and replied 134 times.

Post: Section 8 Rental in DFW

Post: Section 8 Rental in DFW

Post: STR in Austin / Miami

Post: Multi family investing

Post: How to x3 and x4 the mid term

Post: How to x3 and x4 the mid term

Post: Purchase house that already remodeled

Post: Purchase house that already remodeled

Post: Purchase house that already remodeled

Post: Mid term in DFW Texas & Tampa Forida