All Forum Posts by: Amandeep Singh

Quote from @Mark Cruse:

Quote from @Amandeep Singh:

I appreciate the feedback, Mark. I agree, there is a lot to learn and that's why I'm here. The "bottom end" of DC was more about finding affordable options in the DC area. I may have better luck in Baltimore with the criteria I've set for myself. My post summary may not have been clear, but I'm looking in either DC, MD, and/or VA with that price point and Section 8. The plan executed by my father is only about 15 years old, though I also know the market changes have been crazy lately across the board, so I'll look into current strategies. I'm interested in Section 8 due to the dependency of government money versus a Tenant. I've read some great posts here where property owners do their due diligence to avoid the common issues with Section 8 Tenants and its worked for the owners.

Since I've got you looped in the thread, do you have experience with Section 8? Any advice on building such a portfolio?

 Sounds good. If you are very serious there is no better place to learn. People here want you to win and most dont want money from you. For the price points you expressed it would have to be either Baltimore or you would need to go well over an hour from the DC region. Yes, I have experience with Section 8. I currently have some in my portfolio. The best advice I have for section 8 is to understand the community you will be serving and have some knowledge of the culture. People like that check but in some instances it comes with more challenges and headaches. It takes experience. Once you know your community and culture it’s crucial that you attempt to maintain a level of mutual respect. Id try one out if this is the model you chose and see how it goes. It can go a lot smoother if you hire a credible and experienced PM. However, good PMs can be selective in neighborhoods they rock with. Good luck! 

Extremely valuable point, “understanding the community I’ll be serving”. Upper MD seems to be the honeypot. I’ve considered other locations in further out states but man, the thought of having to travel out of the state for an initial few properties which won’t be locally managed seems like a headache this early on. Thank you for the insight everyone. I’ll keep this in mind as I continue the journey. If anyone has local agents in the area who specialize in this please do let me know. 

I appreciate the feedback, Mark. I agree, there is a lot to learn and that's why I'm here. The "bottom end" of DC was more about finding affordable options in the DC area. I may have better luck in Baltimore with the criteria I've set for myself. My post summary may not have been clear, but I'm looking in either DC, MD, and/or VA with that price point and Section 8. The plan executed by my father is only about 15 years old, though I also know the market changes have been crazy lately across the board, so I'll look into current strategies. I'm interested in Section 8 due to the dependency of government money versus a Tenant. I've read some great posts here where property owners do their due diligence to avoid the common issues with Section 8 Tenants and its worked for the owners.

Since I've got you looped in the thread, do you have experience with Section 8? Any advice on building such a portfolio?

Thank you for the response. I am aware of the bottom end of DC's average prices. My post is specifically speaking to Section 8 and in that price range I would expect townhouses/row houses. 

Hi everyone. Does anyone have experience with section 8 in the VA, DC, and MD area? My father used to buy properties in Baltimore for 10-40k each with a monthly income of between 1k-1.4k. Is this even possible anymore? I was interested in learning more as I'm just starting out. I've posted in the forums before and much of the advice i got was aimed towards using leverage, which I am against. I want to own out right and collect 100% profit for my properties. Section 8 seems like a good start, I am in no rush. Thanks for reading, reach out directly if you would like.

Additionally, seeking a real estate agent in the Washington DC and surrounding areas to help put together a realistic strategy.

Thank you all for sharing your experience and guidance. So far my key takeaways are:

1. There is no cookie-cutter method to MF Investing. Best to start small, gain experience with the first property, and move on to MF properties which are priced a bit higher but provide more peace of mind in the long run. Properties in my current area which are 4+ plex properties are no less than 1 million a piece. I like the idea of starting small, paying a bit more on the higher end within an area that has good projected growth (Columbus, OH as an example).

2. Options on loans and to build on an MF property portfolio are readily available. Aside from the mortgage payment on an MF, I want to stick to 0 leverage for now. 

We're going to wait to start by early next year. I could probably jump into something sooner but I like the idea of a larger down payment on something in the 5-700k range. Thanks again everyone for your feedback.

Jason, I appreciate the write up. Will definitely explore the DSCR options. I believe the 400k range is a great initial start for a 3-4 unit. I've been seeing Cleveland and some other areas mentioned a bunch on here so may start there. I'm on the east coast and properties are insane here, will surely have to branch out.

“Keep in mind the good thing about targeting MF 2-4 units is that for each door you’re getting an additional rent per month. It makes qualifying for a larger home price easier since you can use 75% of the rents of each door/unit to qualify towards income.” - This blows my mind. The possibilities for additional MF properties after a few years of growth seem to be more achievable versus having to have a chunk of personal cash down. Valuable piece of advice and thank you again. 

Hi folks. Wife and bring in an annual combined salary of 600k (Net). I have been earning this salary for about a year and expect it to be the baseline for 5-7 years. (My spouse just landed her first gig and is projected to start in November 2024) and we are ready to invest starting fresh in 2025 with minimal payments left on loans, etc. We rent at this time, 3k a month. No major expenses aside from the day-to-day.

I understand it is a difficult market at the moment (High interest, High prices, etc), and I have no problem playing the waiting game. We have decided to start saving, 25k-30k a month (Advised to keep this in MMA's until we're ready to use it to minimize risk) or 300-350k annually, strictly for Multiunit property investing. I have no experience in this field aside from the books and videos I've been watching (Drinking from a fire hose). I typically rely on external sources for experts in finance, accounting, and other areas which I simply am no expert in and am happy to rely on someone else.  To add to the current scope, we do not care for passive income, nor will we rely on it for at least 5 years, but need to break even or cash-positive at a minimum. The end goal is to accumulate as many properties as possible in 5 years. We will likely go part-time with work, and depend on the passive income, after the 5 year 'Investment and accumulation' phase.

- With all the provided background, where do I start?

- Should I source a consultant or some sort of assistance to devise a business plan?

- Our end goal is to use the properties to replace our current income with a goal of 35-50k in passive income a month, are these numbers and the plan too unrealistic?

- If you were in this position, where would you start, and how? Factors such as:

1. - Multi-Unit property price range.
2. - An acceptable market entry range with factors such as the property price, down payment, and interest rate considered.
3. - Do I enter immediately when I am financially ready, or should I wait until I’ve reached the projected savings allocated for this venture?

I guess I need to see this on paper so that I can visualize a clear goal and work towards it. I’ve watched multiple videos on the Biggerpockets channel and it's given me a bit more confidence. Happy to work with someone who can assist with putting a plan together. Thanks in advance for your response and/or advice.