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All Forum Posts by: Dominic Mazzarella

Dominic Mazzarella has started 7 posts and replied 221 times.

Quote from @Damani Tilton:

Hey everyone; I’m a newer landlord and considering renting to a Section 8 tenant for the first time. I’d love to get some insight from more experienced investors.

Here’s the situation:

• I’m asking $1,400/month for rent

• The housing authority will pay $850

• The tenant’s portion would be $550

• The tenant’s reported income is only $1,500/month

I have some concerns about their ability to consistently cover their portion. If they fall behind, will it be particularly difficult to evict them given the Section 8 protections/process?

Also, are there any other considerations or red flags I should be aware of when working with Section 8 tenants? Any general advice on screening, dealing with housing authorities, or protecting myself contractually would be appreciated.

Thanks in advance!


That tenant portion does seem a bit high relative to their income. $550 out of $1,500 is over a third of what they make, and that’s before accounting for food, utilities, and everything else. I’d definitely be cautious there. Even with Section 8 covering the bulk, if they fall behind on their part it can still become a headache for you.

Eviction with Section 8 isn’t impossible, but it does take longer and usually requires more documentation. I’d make sure your lease is tight, and that everything is in writing, especially around what happens if their portion is late.

Also, double-check how utilities are handled. If the tenant pays them separately, that’s another factor that can push their total housing costs too high and impact payment reliability. I’ve had good Section 8 tenants, but that income ratio would give me pause without some sort of supplemental income or strong payment history.

Post: Raising Cash for Down Payments

Dominic MazzarellaPosted
  • Investor
  • Hendersonville, NC
  • Posts 231
  • Votes 154
Quote from @Arnold Caceres:

Hello BP,

I am in search for a rental property and have 2 bank pre-approval letters for the funding. However, I'm afraid I'll fall short in cash to close and for the 15-20% down payment the bank requires.

What are some strategies you use to raise cash for down payments without having to dilute my ownership? 
thanks 


You've got options here, especially if you're trying to avoid giving up equity. If you've got strong credit and income, a personal loan or HELOC (if you own other real estate) might be the simplest solution. Also drawing from a retirement account like a 401k, or using credit card balance transfers strategically just to bridge the gap, though that takes discipline.

If you’ve got a friend or family member who believes in what you’re doing, a short-term private loan with interest could work too, without diluting ownership. Just make sure it’s all documented to keep it clean.

Some of the comments in this post are interesting. I wouldn’t lose heart just because folks on here tell you you need to save more or get a better job. What you might need is just a bit of creativity. 

Post: Trump Policies Will Put Downward Pressure on Real Estate Rents/Prices

Dominic MazzarellaPosted
  • Investor
  • Hendersonville, NC
  • Posts 231
  • Votes 154
Quote from @Scott Trench:

I know that anytime Trump's name is mentioned, someone gets triggered. Either the post is too anti-Trump, or too Pro-Trump. 

Let me be clear - I do not condemn Trump's policies or necessarily know whether they will be positive in the long-term future or not for real estate investors. Further, "Downward Pressure" may be "bad" for investors, but it may also be "good" for renters - his policies, if I am correct, may negatively impact housing prices and rents, to the detriment of investors and to the benefit of renters, in the near-term. 

"Positive" or "Negative" impacts are relative. I write from the standpoint of a real estate investor, and I perceive Trump's actions to be threatening to near-term real estate investment returns, on the whole. I believe this because I think that on the whole, his first two weeks of actions are likely to: 

- Have zero no impact on near-term supply (deliveries for single family and multifamily homes 2025 are a result of actions put into motion several years ago)

- Put upward pressure on interest rates: Trump's demand that the Fed lower rates will have absolutely no effect, other than providing a cheap source of easy social media clicks and engagement for real estate pundits. However, the implementation of tariffs, or just the threat of tariffsis likely to influence rates, by impacting inflation numbers, and this influence may come quickly if prices for many common goods and services and raw materials rise in anticipation of tariffs, or in response to their implementation. 

- Put downward pressure on demand: I personally believe it is unlikely that Trump actually deports millions of illegal immigrants who have settled in the United States. This, to me, seems impractical, and a PR nightmare. It's possible he carries it out, but I believe it unlikely. I believe it is far more likely, however, that the effect of his stance and actions materially lessens the flow of new illegal immigrants. This will slow new demand for rentals. In the event that any meaningful percentage of 10-15 million (estimates seem to vary widely depending on which news source you prefer) current illegal immigrants are deported, real estate investors will have a big problem as vacancies soar. It is likely that a huge percentage of that 10M-15M illegal immigrant population are renters. Regardless of whether investors currently rent to illegal immigrants, their competition in the market likely does.

- Put Upward pressure on real estate operating costs: Increased costs for raw materials and supplies, and the likely increased costs for labor involved in many real estate related CapEx and maintenance projects signal the risk of increase in costs for real estate operators.

If there is no impact on near-term supply, a modest slowing of inbound (illegal) migration, more reason to believe that the cost of many goods and services will increase, and real reason to believe that inflation triggered by something other than an increase in the money supply (namely the cost of specific goods and services that are NOT housing going up, which comprise the CPI) will force the Fed to raise rates, this, on the whole, is not good for real estate investment returns. 

No, I do not think that there will be a housing crash or a massive drop, nationwide, in rents and prices. Yes, there will be offsets (do Tariffs and slowing illegal immigration increase wages for some workers - likely yes). But, I believe that the actions of the first two weeks should give investors, on the whole, reason to incrementally revise down their expectations for growth in prices or rent growth in 2025. There may also be incrementally better probability of deals, as investors who are dependent on rates coming down may find their hopes disappointed. 

I think 2025 will be, by and large a buyer's market, and that the new administration's policies only, and again incrementally, make me more confident that this will be the case.

What do other investors think? Do you agree or disagree? 


I agree with most of your points. Also if this tariff business leads to a recession and folks start losing their jobs en masse, that will almost certainly bring downward pressure on prices. 

Post: Hiring Fears: Overcoming the 3 Fears of Hiring

Dominic MazzarellaPosted
  • Investor
  • Hendersonville, NC
  • Posts 231
  • Votes 154
Quote from @Ashley Wilson:

Two years after I knew I needed to hire someone, I actually did. Two years of bandwidth constraints. Two years of stress. Two years of missed opportunities. Two years I will not get back.

Why did it take me so long?

Long story short I was scared. I was paralyzed in the fear that a hiring mistake could be a life-altering event. The reality was, this fear was irrational. It was irrational, not because I was infallible from hiring the wrong person, but because it wouldn’t destroy my life.

As I faced my fear head-on, I realized there are three fears surrounding hiring: 1) fear of affordability, 2) fear of hiring the wrong position, and 3) fear of hiring the wrong person.

Affordability

In my experience, this is the most common fear. I was able to overcome this fear by the following self-talk:

“Why are you afraid to hire someone?”

I might hire the wrong person.

“Do you think you will be able to recognize that you hired the wrong person?”

Yes, I do.

“In a year?”

Sooner than that.

“In a month?”

Yes, if not within two weeks.

“So, in the worst case scenario where you hire the wrong person, could you afford paying their salary for two weeks?”

Yes.

Once I had this epiphany I was more confident than ever to make a move. One point to clarify, I wasn’t preparing to fail, I was working through a fear. I obviously had more work to do to identify the right hire, but I was now approaching the other aspects with confidence instead of fear when it came to making a decision on the correct hire.

Wrong Position

Almost every business, regardless of whether they are new or established, would agree that another set of hands could help their business. The question is what do those hands do. As newer businesses tend to be more fragile hiring for the right position even more important.

There are two schools of thought when it comes to hiring (start with the top, or start with the bottom). Hiring someone at the top provides high value impact at a high price. Hiring from the bottom removes administrative tasks to free up your time but typically doesn’t yield high value impact. Different businesses require different approaches, which is why these two strategies are equally implemented.

Surprisingly Ai can also be a consideration when it comes to a hiring solution. In other words, instead of thinking of hiring a person, you now have the option to subscribe to an existing solution, or hire a developer to build you an application that can replace a hire.

Regardless of whether you hire from the bottom, top or utilize Ai, analyzing cost-benefit is a perfect place to start to identify the best strategy to deploy for your personal situation. Pro Tip: Benefits aren’t limited to bottomline revenue, but also opportunities created (which are typically harder to quantify).

Wrong Person

Finding the right person who fits the cultural you are building is equally as important as hiring for the right position. I have personally witnessed the impacts a wrong person hire can do to an organization. A few examples include negatively shifting employees mindsets and work ethic, being a drain on management, and a negative customer experience.

To increase my chances of hiring the right person, I prioritize one’s personality over their experience. In other words, I look at personality scores first. If their natural disposition does not fit the role’s personality disposition then I don’t move forward with the candidate. For example, if I am looking to hire someone who manages data they must test very high when it comes to detail oriented.

For so many years I have heard people say, “There are so many bad contractors”, “Virtual Assistants are horrible”, or “There are so many lazy workers”, but the reality is there are so many people who don’t know how to hire. Focusing on overcoming the fear of affordability, wrong position and wrong person gives you the power to find the right hire and set your business up for success!


Great post Ashley. It takes guts to post something candidly like this in public and the advice is solid. 

Post: Cash vs Loan buyer- which do you prefer?

Dominic MazzarellaPosted
  • Investor
  • Hendersonville, NC
  • Posts 231
  • Votes 154
Quote from @Renee I.:

Hello,
For those who have sold real estate, do you prefer cash buyers? Or if a loan offer for your property is x amount higher would you take that instead? How much weight do you put on a cash offer?  I am considering all the + and - to investing using cash or investing using loans… Thanks! Renee

Personally, I like cash buyers for the speed and certainty, but the price has to make sense. A lower offer just because it’s cash doesn’t always cut it. If a financed buyer comes in stronger and they’re well-qualified, I’m absolutely open to that.

Cash is great for avoiding delays and headaches, especially if you’re on a timeline or the deal’s tight. But most of us are in this to maximize returns, so I’d weigh the spread between offers more than the funding source alone. Strong financing and a solid track record can still win.


Mom and pops usually do the all cash deals but investors usually finance, and for good reason. You can only make your own money go so far. 

Post: Home Equity or New Mortgage Loan

Dominic MazzarellaPosted
  • Investor
  • Hendersonville, NC
  • Posts 231
  • Votes 154
Quote from @Jessica I Castillo:

Hi there I am new to all of this. My husband and I are looking into purchasing a new home and renting our current home, we are located in Arlington, TX. Should we take out a new loan or use our home equity? I must admit we are knew to all of this of home equity since I've never done this. 


Would you mind giving a few more details? How much equity is in the current home, do you have enough cash on hand to buy the other home, what's your current mortgage rate, etc.

Post: College Condo purchase

Dominic MazzarellaPosted
  • Investor
  • Hendersonville, NC
  • Posts 231
  • Votes 154
Quote from @Will Stewart:

Ok BP geniuses, in need of some help here. This may take a little to explain clearly but here goes. My daughter will be a senior in high school next year. She is set on attending Auburn and there is a great shortage of university housing for the amount of incoming freshmen. We have recently been discussing purchasing a condo in the area. I am working with a local realtor in the area that is also a personal friend. So no issues with him or his advice. What I am trying to figure out is the best way to go about purchasing the condo. I have about 145K liquidity and could also use some from a possible 1031 exchange of a current rental property I own. I would rather not use all my liquid funds but also have to pull out around $1200-$1600/ month in expenses as they will be my daughter's portion. I am just trying to figure out a way to get in the condo without having to use so much of my own money, but also not taking a bath on the expenses due to some coming out of my own pocket. I am not very savvy on the investing end as I only have one property to speak of. Any help or advice would be greatly appreciated. Thanks in advance!


If there's strong demand near Auburn, buying a condo could work well both for your daughter and as a long-term play.

Since you’ve got liquidity and a possible 1031, maybe take out a small mortgage instead of paying all cash to preserve your funds. Roommates could help offset the monthly costs too. Just make sure you run it by a 1031 expert if you go that route.

Post: Buy or Rent out

Dominic MazzarellaPosted
  • Investor
  • Hendersonville, NC
  • Posts 231
  • Votes 154
Quote from @Zane Kotzur:

Hey everyone, I'm looking for some advice when it comes to either keeping my existing property and renting it out or selling it. I'm 21 years old with a baby on the way, I house hacked my first property which is currently the only property I live in and have, I bought the property for 260k and have only had it for 7 months, I used a VA Loan, it's 4bed 2 bath duplex each unit is the same 1200sqft with the same layout on both sides, I currently rent out to some buddies in the other unit for 1370 a month utilities included my mortgage with everything included is 1801 a month. The buddies that are renting it for me are going to be moving out within the next year, I'm thinking for my area I'll be able to get around 1400 a month for each unit max. I'm considering buying another house because I am approved to get another, and I wanna be in a nicer area with a nicer house for the baby obviously it's not a necessity for me to move but me and my girl would like to.

My question is should move out and buy a 3 bed 2bath house that I could rent out down the road when I PCS ( move duty stations ) because I will be here for another 2 years, the house will be around 360k and my interest would be around 5.6% at a fixed rate. And keep the other duplex as well. And be pulling in roughly 900 of monthly cash flow that I could be putting back towards the principal of the loan to pay it off quicker.


Or should I sell the Duplex id only have about 5-7k equity in the duplex if I'd sell, then buy the other house and not have to worry about property management and everything else. The only reason why I'm considering this is because the duplex is not in the best side of town and besides one duplex on the street it's the nicest on the street and most expensive. 

Or I could buy a fixer upper with the VA Construction loan remodel it and refinance and pull the money out of it and live in it. but I have no experience in doing something like that and I don't know if that'd be a good option if especially I have a baby in the way.

Obviously the other option is to just keep the duplex and live in it for the remainder of the 2 years left of this contract.

Just need some advice I'm new to this game, and looking to be financially set up so I can provide plenty to my little family. And sorry if any ideas are stupid just been reading a lot of books and listening to other people's experiences, and trying to figure out the best outcome for me and my family. Feel free to let me know any good ideas yall have too.


If it were me, I'd probably hold onto the duplex. You're sitting on a low-interest VA loan, pulling in solid rent, and even if it's not in the best neighborhood, it's already cash flowing and likely to appreciate a bit over time. Selling now with only 5–7k in equity probably won't move the needle much, especially after closing costs.

Buying a nicer house for the family makes sense emotionally, and since you’re approved, it’s worth looking into—but if you’re trying to build long-term wealth, stacking properties is usually better than swapping one for another. That $900/month could go toward the principal or just sit as a nice cushion.

I'd probably keep the duplux and rent it out when you move and buy the next house when you find the right one.

Quote from @Mike Lambert:
Quote from @Dominic Mazzarella:
Quote from @Mike Lambert:

A young member of my family asked me how to start his real estate career and, unsurprisingly, I suggested that he started by house hacking. For him, it would mean renting the spare bedroom of his 2-bed condo short term. He later asked some good questions about the cleaning and I couldn't answer since I've never house hacked myself so I'm asking here for him.

He's very busy so he needs to get the cleaning done professionally. So:
- When a guest leaves, does he need to just get his spare bedroom and bathroom cleaned or his whole condo?
- Can he charge the guest the cost of the cleaning of the full condo or should he charge much less just for the bedroom and the bathroom?
- If he could charge the full cost, he could get his whole condo cleaned often and have the cleaning paid by the guest but that could be prohibitive for the guest who'd only pay for a room rental, especially if the stay is very short.
- If he can only charge part the cleaning cost for the spare bedroom and bathroom, does he need to clean the rest of his condo at his own cost every time there is a turnover, considering that, at the extreme, there could be a turnover on a daily basis? Or does a guest expect that his bedroom and the bathroom will be spotless clean but don't expect that the rest of the condo is 100% spotless clean at all times given that my family member lives there?
- If, at times, it makes sense to only get the spare bedroom and bathroom cleaned, can he find a cleaner/company to do that, as it might not be worth it for the cleaner to travel for such a small job?

Thank you!


If he’s only renting out the spare bedroom and bath, I’d say just clean those areas between guests unless the rest of the condo is used or shared. Most guests won’t expect the entire condo to be spotless if it’s not part of their stay. As for the cleaning fee, he can charge what it costs to clean the areas the guest used. Charging for the whole condo might seem excessive unless it’s getting cleaned too. And yeah, sometimes it’s tough to find a cleaner willing to come out just for one room, so he might have to pay a premium or coordinate with someone local who’s flexible.


Thanks Dominic! The rest of the condo will be used by my family member and the guest will be able to use it. My family member is takes care of his place and gets it professionally cleaned regularly so the question becomes whether he needs to get the rest of the condo professionally cleaned in between at every turnover?


Got it, that makes more sense now. If the guest has access to the rest of the condo, then yeah, expectations will probably be a bit higher. It doesn’t necessarily mean it needs a full deep clean after every guest, but it should at least be tidy and presentable. Maybe your family member can keep it generally clean, then just do a quick touch-up or spot clean in common areas before new guests arrive. That way you’re not paying for full professional cleaning every single time, but it’s still guest-ready.

Quote from @Mike Lambert:

A young member of my family asked me how to start his real estate career and, unsurprisingly, I suggested that he started by house hacking. For him, it would mean renting the spare bedroom of his 2-bed condo short term. He later asked some good questions about the cleaning and I couldn't answer since I've never house hacked myself so I'm asking here for him.

He's very busy so he needs to get the cleaning done professionally. So:
- When a guest leaves, does he need to just get his spare bedroom and bathroom cleaned or his whole condo?
- Can he charge the guest the cost of the cleaning of the full condo or should he charge much less just for the bedroom and the bathroom?
- If he could charge the full cost, he could get his whole condo cleaned often and have the cleaning paid by the guest but that could be prohibitive for the guest who'd only pay for a room rental, especially if the stay is very short.
- If he can only charge part the cleaning cost for the spare bedroom and bathroom, does he need to clean the rest of his condo at his own cost every time there is a turnover, considering that, at the extreme, there could be a turnover on a daily basis? Or does a guest expect that his bedroom and the bathroom will be spotless clean but don't expect that the rest of the condo is 100% spotless clean at all times given that my family member lives there?
- If, at times, it makes sense to only get the spare bedroom and bathroom cleaned, can he find a cleaner/company to do that, as it might not be worth it for the cleaner to travel for such a small job?

Thank you!


If he’s only renting out the spare bedroom and bath, I’d say just clean those areas between guests unless the rest of the condo is used or shared. Most guests won’t expect the entire condo to be spotless if it’s not part of their stay. As for the cleaning fee, he can charge what it costs to clean the areas the guest used. Charging for the whole condo might seem excessive unless it’s getting cleaned too. And yeah, sometimes it’s tough to find a cleaner willing to come out just for one room, so he might have to pay a premium or coordinate with someone local who’s flexible.