All Forum Posts by: Ed Perez

Brian,

PROS: 

Guaranteed on time rent; and

Routine inspections by Sec8 inspectors which keep your tenants on their toes.

CONS:

Overly demanding at times;

Sense of entitlement;

Endless of sobbing stories;

Mostly on disabilities (regardless of most of them able to work);

Will never care for your proerties;

Tenants not paying the water bills in full each and every month (If they're to pay for water usage);

Constant calls from sec8 tenants asking from you to write letters for them to sec8 office stating that no additional residents are living with them (this is in response to complaints sec8 office received); 

New pit bulls in house regardless of what it says on the lease;

If you're paying for water and sewer, your property will look like a car wash and laundromat since most of their family and friends will be using your property because of ammenities.

Cigarette butts all over the yard;

Rent is below market rent;

Arrogant Sec8 inspectors; etc.

Congratulatuons! Same thing happened to me last year. I good friend of mine referred me to his cousin who just inherited a condo from her dad who just past away. I didn't really want it since it was in the West side of town (45 mins away) and I only invest in the east side of town. Nonetheless, i decided to buy it since it was in a nice area and it only needed a new carpet ($1,200). The seller brought in all new stove, fridge, above the range microwave, dishwasher, and washer and dryer to prepare to sell the condo through her realtor. She said she wanted a market value of 75k for the condo. I mentioned to her that condos are much harder to sell and it would cost her more money the longer it sits in the market because of HOA fees, utilities, taxes, maintenance, etc. Well, after 24 hours of deciding, she literally cryingly accepted my offer of 37k cash and she made me promised that I would take good care of her dad's condo. Her dad was the original owner and paid 115k back in 2002. Now, the condo is being rented by a doctor.

Most RE deals happen outside of MLS listings. Again, Congratulatuons!

If you have the available funds to absolutely make a legitimate offers, by all means, go for it.  But if you're new to this and just testing the water and really have no funds (from your own or from lenders), you're just wasting your time and money and the people who are really interested in selling their homes. 

I wouldn't worry about the Attorney General Office. They have better things to do.

Dominic, Gene of Assisted Living Academy gives seminars regarding your plan. I'm gping to out my property to a licence holder. 

Hi Gene, I was going to take your course but opted to take the CEAL course instead, for me to have a better understanding of the operation. Now that I've taken the course and successfully passed it, I'm now leaning more towards renting my property to an RAL operator. But I may still change my mind and may decide to take your course in June. Thanks for the invitation. 

Hi Dave, they're two completely different courses. The one I took is for CEAL certification and has nothing to do with opening up RALFs. The CEAL course went over regulations, requrements to be an administrator, residents rights, dimentias, dealing with family members and complaints, laws, evictions, building and fire regulations, dealings with inspectors from health and fire departments, hiring of staff members, etc. The course also discussed about problems with RALFs, such as high turn over rate of workers, complaints, etc. We got to tour a facilty and should us how they run their operation (like scheduling, food prep, inspections, etc). So, basically, the course gave all the absolute nuts and bolts of RALF operations. 

I heard Genes class is mostly geared towards acquiring the right property for RALFs.

Hi Dave, I thought about taking Gene's class but I opted to take the CEAL (Certified Excellence for Assisted Living) course instead through the Ohio Health Care Association (OHCA). In this course, I learned about the Good, the Bad, and the Ugly pertaining to the operation of RALFs. Granted the course is geared towards larger RALFs, but I learned that more regulations on RALFs will be coming down the pipeline (large and small). The majority of the people taking the course were mostly administrators, directors, and registered nurses. I was the only investor in that class and was able to network and got a better understanding of what I am really getting into should I decide to pursue this business.  As you may know, AL is highly regulated and this business demands detailed attention from all parties involve to effectively run a RAL business. 

 Hi Sid, thanks for your reply. I see exactly what you're saying about being a landlord and all the responsibilities that come with it for being one. Thus far, I've been relatively lucky (knock on wood). For all of my renovations (flip and hold), I've always work with contractors. Its kind of funny that the majority of my contacts in my phone are all in the construction trade. I have backup after backups. 

 Hi Elijah, thanks for the reply. I bought this property cash and with the amount of money it requires for rehab, I would only net around 102k. Now, if i inherited this property and sold it for 1MM, my net profit should be closer to 1MM since I didn't spend a dime on the property. 

 Hi Chang, thanks for the reply. Thats what I normally do with my flipped properties. I wait until the day after the 12-month period has gone by. That way, I pay less money to the KGB.