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All Forum Posts by: Daniel Villanueva

Daniel Villanueva has started 4 posts and replied 14 times.

Originally posted by @Jeff Greenberg:

@Daniel Villanueva I don't know of any educational resources specifically on SH. have any specific questions?

 Honestly just confused on the main source of advertisement for student rentals. I understand a good bit of the aspect on student rentals just really confused on how you would advertise.

Originally posted by @Chris Tracy:

Are you referring to buying a student housing deal? (for the first part of your question)

 Yes! 5-6 Rooms rented separately.

So basically I got some quick question's mainly out of curiosity more than something I need right this moment so looking to get into student and want some good books/podcast I could learn from or some advice anyone reading this has. Second, when it comes to utilities in multiple real estate building can you get a better deal on utilities or does it stay the same? The reason I ask a while ago I think I heard something about being able to "bundle" your properties together to reduce the price of utilities dramatically. Not sure if it's legit just heard it somewhere. Anyways thanks for reading and let me know if you got any tips.

Originally posted by @Thomas S.:

@Daniel Villanueva

Take the next 6 months studying everything on this forum, read books on real estate investing, listen to the pod casts. You will most likely change your opinion on S8 investing.

 Could you give me 3 reasons you don't do it would love to hear your insight if that's ok.

Originally posted by @Dennis M.:

Your insurance is 200$ a year ? 

Your property tax is 350$ a year ? 

Those can’t be correct 

You think a bank is going to give you a 4% loan on a house for 25k especially if it needs that much work . Your dreaming bro . Purchase price and value  is far below what banks are willing to lend 

 Good point I fixed everything and did it under private 30-year loan including repair cost into the loan. Is it still dreamable or more realistic please give me your insight? And one more question what type of investing do you would be nice to hear other peoples pathways.

Originally posted by @Matt Shields:

Be careful what Section 8 advertises. I wasted a lot of time/money on my first and last Section 8. They promised me above market rent, which I thought would make up for the government hoops I had to jump through, but when my potential tenant applied with her voucher I was given a low-ball below market rent rate. I easily rented the house for 15% more to a "normal" tenant and no hoops, but it cost me several weeks.

Also, use "extreme vetting" on Section 8 applicants. You are not going to believe the dregs of society that will show up. Most have a story and an excuse why it's not their fault. 

As always, don't trust the internet, seek professional advice. Good luck!

 Yeah fully understand but just curious not sure how section 8 works fully but don't you get approved for a rent value for your property? And could you give me your honest take on section 8 since you have done it pros and cons, and possibly if you recommend it for someone looking to invest in low-income housing if I take the caution to screen for good tenants.

Originally posted by @Aaron K.:

@Daniel Villanueva If you are finding things with a 40% cap rate I'd wager that you're doing the math wrong even 12-15% is extremely high and difficult to find in most parts of the country.  Where are these properties located?

 Went ahead and did some conservative math let me know if I left a cost out. 

Originally posted by @Aaron K.:

@Daniel Villanueva If you are finding things with a 40% cap rate I'd wager that you're doing the math wrong even 12-15% is extremely high and difficult to find in most parts of the country.  Where are these properties located?

 Went ahead and did some conservative math let me know if I left a cost out. 

Columbus Ga there are foreclosure properties for 15-25k which rent on section 8 for 800 and cash flow about 400 on avg. I don't mind linking all the information and math behind it. But keep in mind this does not include labor cost of rehab which I'm going to spend on avg probably like 50 hours a week for 2-3months to rehab it.

Originally posted by @Aaron K.:

@Daniel Villanueva It depends where you are, but most places don't have extended vacancies if a unit is priced properly.  If you invest in areas that are not section 8 you will typically see higher rent and price appreciation and in some parts of the country the cash flow may be more than what you would expect from Section 8 in your local area.  Yes section 8 can be harder to scale because the government has many requirements for units and there are tenants who don't pay sometimes.  It is also not uncommon for management companies to not want to take on Section 8 properties because it is a hassle for them.

 Interesting but I don't have a lot of money that is why I'm willing to sacrifice time/sweat in rehab for a low budget property that after its done is like 40% cap rate compared to 12-15% on a single family normal rehab property. In other words, if I had 60k I could either rehab and flip 3 section 8 quality homes that bring $1,200 in cash flow compared to flipping 1 home that is bringing $300 in cash flow if I'm lucky. And the property management I did not know that, that's very interesting that is something to consider. And the section 8 requirements I don't see what you are referring too because I know they do a yearly checkup but that's just for safety most things you won't have to worry about. Please let me know what you think and thanks again for the response.