All Forum Posts by: Douglas Gratz

@Matthew Reid On this house, what will the ARV be?

@Matthew Reid Nothing specific that you havent already heard.  I just stay extremely strict and have mostly good tenants.  My section 8 tenants have never been responsible for paying more than $300 towards their rent which is relativly low and makes it "easier" to afford.  Since the housing authority sends me a direct deposit, I do not look much into their histories other than past rent check with an old landlord if I can.  I already know most of them have low credit and bad histories or they would not be getting subsidized housing.  Just lay the law down !  

@Shain Ismailovski You are mostly right, but I have 8 duplexes that I section * in lower income area's and have very few problems.   @Matthew Reid My goal when buying these properties is to buy them low enough that when I refi I make money from it.  I put this extra cash away incase of problems and thats that.  I also buy in places where the county is eviction landlord friendly, where eviction takes 30days tops so at most (if you pull the eviction card at first missed paymet) you wont miss to much rent as opposed to places that take months and you lose months of rent.  My cap rate is around 12-14% .  Just interview your tenents well and even better if you can have someone familiar (who grew up in an area like that) to manage them as they know the lay of the land.  Hope this helps!