All Forum Posts by: Dominic Mazzarella

Investing in Peoria sounds intriguing, especially since you’re drawn to the area and its industrial charm. For the mixed-use building idea, you’re right to be cautious about vacancies as a remote investor. Those types of properties can bring in good returns, but the management can be intensive, and finding reliable tenants for both residential and commercial spaces might take some work. If you go this route, consider hiring a trusted property manager local to the area who knows the market well.

I have personally owned and managed a multifamily property in Illinois and after selling it I said I would never invest in that state again. I had constant issues with the local government and the taxes were absurd. But that's just my two cents.

If you're targeting Section 8 tenants in Chicago, I'd suggest listing at the fair market rent of $2000. The voucher program typically determines the amount they’ll pay based on their calculations, and you don’t necessarily need to lower your listed price for utility allowances. Listing at $2000 gives you room to accommodate voucher limits while still capturing the maximum rent possible. That said, check CHA’s payment standards for your unit size and area to see how they align with your target rent.

SB 9 sounds like a real game-changer for California investors. The ability to turn single-family lots into duplexes or even split lots for separate units can significantly boost rental income and property value. It seems like a win-win, especially with the simplified approval process and flexibility for multi-generational housing. That said, complying with local ordinances and ensuring the lot isn’t in a restricted area will be key. For anyone considering this, it’s probably worth consulting with a local land-use attorney or planner to navigate the specifics and make sure you’re maximizing the opportunity without running into red tape.

Anyone here tried an SB 9 project yet? Curious about the on-the-ground experience.

If you're still in college and working with an FHA loan, a duplex can be a solid option. Renting out one side can help offset your mortgage, which is a huge advantage while you're building financial stability. It also gets you into real estate sooner and lets you start gaining experience as a landlord. That said, location matters a lot. If the only MFH options you're finding are in areas you're not comfortable with, it might be worth focusing on a duplex in a better neighborhood.

Saving up for a larger property later is a valid approach too, but keep in mind that real estate tends to appreciate over time, and waiting might make it harder to enter the market later. Although there are advantages to waiting too, such as if interest rates continue to drop. A duplex could be a great compromise that lets you start small, build equity, and learn the ropes while mitigating some of the financial risks.

Do you and your husband have any kind of long term strategy in mind? That might give more informed answers here. And by the way, good for you guys for getting started early. I know many of us didn't get into this game until later in life so my hat's off to you.

I definitely get where you're coming from. Focusing on equity growth makes a lot of sense if you're in a position to take advantage of those opportunities. Adding value to a property and then either selling or refinancing to pull your capital out is a solid way to build momentum, especially if you're okay breaking even on rental income. Cash flow is great, but it can feel incremental compared to the boost you get from equity plays.

For me, it's more situational. If the market is appreciating rapidly, I'm with you—equity growth takes the lead. But in slower markets or times when cash flow can provide stability, I'd lean that way. How do you balance the risks of holding during a market dip versus the rewards of appreciation? Always curious how others strategize around that.

Home warranties can sometimes cover rental properties, but it really depends on the specific terms of the warranty and the provider. Many warranties cover single-family homes or duplexes, but for multifamily properties, you might need a specialized policy. Warranties often have limitations, like they might not cover pre-existing issues, and there could be delays if they require you to use their contractors.

I'm not sure if you've purchased a warranty already, but before purchasing a warranty, it’s a good idea to carefully read the fine print to see what’s covered and if there are any exclusions. Confirm that the warranty applies to the type of property you own and consider whether the annual cost and service call fees make sense compared to just handling repairs yourself or using your own trusted contractors.

It sounds like the issue is with the Debt Service Coverage Ratio (DSCR), which lenders often use to determine how much they're willing to loan. If the rental income doesn't sufficiently cover the debt payments by their standards, they'll limit the loan amount, even if the property is worth more.

You could try a few alternatives:

• Look for lenders who specialize in commercial real estate and have more flexible DSCR requirements. Credit unions or smaller regional banks might be a better fit.

• Consider a cash-out refinance with a lender that focuses more on the property’s appraised value instead of just the income.

• Explore private lenders or hard money loans if you need higher leverage, though the interest rates will likely be much higher. Be really careful if you go this route, there are some shady actors in this space. 

• If you can, raise rents or find ways to increase the property’s income before applying again.

Have you already tried talking to multiple banks, or is this feedback from just one? Some lenders might evaluate the same deal differently. I’ve been in your situation and have had to call dozens of banks before I found one that gave me what I needed. Prepare to be tenacious to get what you want here. 

I’ve dealt with tenants like this before, but I’ve never owned property in Texas. You’ll want to handle this carefully to stay within the law. Start by documenting everything—dates, incidents, and any communications. This will be critical if you need to escalate.

Serving a notice to vacate is the right move, and having a constable present can help ensure things stay calm. If the tenant doesn’t comply, filing for eviction will be your next step. Texas tends to favor landlords in these cases, but follow the legal process exactly—any misstep could delay things.

As for protecting against retaliation or property damage, installing security cameras (if you haven’t already) to monitor common areas might be worth it. If you haven’t already, consult with an attorney who specializes in landlord-tenant law in Texas(sorry I have no recommendations here). It’s better to spend a little now than risk costly mistakes later.

If you’re looking for multifamily deals in NC, try connecting with local commercial brokers who specialize in multifamily properties—they often have access to off-market deals.

Also, check out LoopNet or Crexi for listings, though keep in mind that the best opportunities might not be listed publicly. I’ve heard lots of professional investors bash LoopNet but I’ve had multiple home runs from deals I picked up there. It’s just that like 90% of what’s on there isn’t good. However, that’s been my same experience with off market deals as well. 

Networking with local real estate meetups in Raleigh or surrounding areas could also help you find leads directly from other investors.

Hey Dan, renting to a sober living operator can be a great idea. To find someone, I’d start by reaching out to local rehab centers or recovery organizations as they often know operators who are looking for housing. You can also check out groups like the National Alliance for Recovery Residences (NARR), which might have some leads for you.

Another option is to talk to property managers who specialize in group homes or sober living. They might have connections or advice. And if you’re listing the house online, try platforms like LoopNet or local Facebook groups for real estate or community housing.

Just make sure to do your homework and ask for references, check their track record, and make sure they’re following any local zoning or licensing rules. Good luck in your search.