All Forum Posts by: Andrew Glenn

I couldn't either. We will need the sharable PDF link from the flipping calculator.  I'm pretty sure it's on the "results" page, which is what you linked us originally. 


The brochure is coming back in an invalid format. 

Congrats. Glad to see this worked out well

http://keyetv.com/news/local/moving-company-abandons-house-in-middle-of-street

If this is your project, my sympathies. 

We're evaluating a deal that involves a Section 8 tenant already in place. We've read that the government will guarantee up to 70% of the rent on behalf of the tenant. However, I do know that Section 8 has a bit of a stigma. 

With that said, I'm looking for thoughts / experiences with Section 8 Tenants from experienced landlords. What should we keep in mind / look out for / etc? 

@Rick H. I'm not sure I understand your question, but I'll take a stab anyway..

If you're asking what's the additional value of the property being on the market and otherwise available for the first person to grab it? I'm not sure I can throw a dollar figure at that since it's an exercise in running the numbers. 

I think a better way to phrase my question: Have any of you been in this position and executed on it despite the low-ish CCR?

Edited to address Eric:

Buy and hold. Why 15%? What brought you to that conclusion over the years?

I found an abandoned property that's been foreclosed on by the bank. It's on the market for a deep discount. It has a list price of 70k. The property is assessed at 104k, and looking at the neighborhood I think it can support sales in the 110k area. 

I'm not in a position to execute right now, but I'm looking at the numbers anyway. The Cash-On-Cash percentage is "low", but it is cash-flowing even given a bunch of contingencies I calculated in. The repair costs are conservatively estimated since I can't get into it. Property Management, Insurance, Vacancy and rent is based on market research.

Anyway, am I splitting hairs about the Cash-On-Cash, especially starting out, or is that a deal-breaker? 

https://www.biggerpockets.com/calculators/shared/608110/a5ec0bac-8096-46ca-8520-dc747620e94a

@Zach Quick Thanks. That helps a bit. After 10 units, then the numbers work for me and vacancy percentages aren't as much of a concern. Between 1 and 10, especially the first 4 or 5, are where I'm trying to mitigate. Your suggestion to stress test makes perfect sense. The reserves that the bank requires are there for a reason, thanks for pointing that out. 

Edit: Unsure if this is best suited in Starting Out, or Investor Psychology...

My wife and I are pretty new to this whole thing, and we have a lot to learn. We currently have 1 unit and it's working well for now. 

As we expand, I'm aware that vacancy is not my friend. The Buy/Hold calculator factors that in, but I realize that's "average".  It doesn't account for national-level issues, such as the bubble and resulting crash back on 06/07 where unemployment spiked. On one hand, a ton of foreclosures (should) address the vacancy issue since people need a place to live. On the other, the foreclosure tanks credit and could cause an applicant to not pass a pre-screen process. 

As an investor, how do you protect against that sort of scenario? I know some investors got out before hand, and that's one way, but what if you stay in? The first thing that comes to my mind is to reduce expenses and bring the P+I down as much as possible to reduce overhead and provide a cashflow buffer. What happens to your business if 20, 30, 40% of your portfolio is suddenly vacant? Especially if you have a smaller portfolio and any unaccounted vacancy really hurts?

@Tiffany N., How long until the tenant is officially out of your unit? I read above that you were concerned about the condition she'll leave the unit in. I'd love to hear back on how that turns out. 

@Wes Shaw, Congrats! That's a big step, and I'm sure the quick influx of interested parties only solidifies your decision. Be sure to keep us posted on how the rental works out for you over time. 

@Anthony Lee, What's the benefit of the additional interest?