All Forum Posts by: Elliot Mendoza

Yeah man, I got bit into pretty hard by a turn key in indianapolis a few years back. I was hopeful that I could turn it around, but since buying in december 2013, it's been all negative year after year. I almost couldn't give these properties away it's so bad. 

I purchased two section 8 duplexes approximately 2 years ago. Huge learning experience, and despite the heavy initial costs of fixing up many hidden problems, these have started to turn a profit.

The problem I am having over the last few months however, has become my PM. And I'm wondering if anyone out here knows any good PM companies in the area. Figure I could try google, but maybe someone on here is better 'in the know' :) 

Thanks

Yeah, harsh lessons, but you've got to learn them somehow. 

I've never had a mentor sadly, and being military at the time coming home from a deployment, long distance is something I'm used to. I just got lazy and didn't do my own due diligence and thats a lesson you'll never forget.

My PM though is outstanding in my book. So he's helped me out over the year and if nothing else, has ensured my property has met the repairs i've ended up paying for and taken care of all the issues that have come up since purchasing said property. I have no complaints, except maybe that plumbers cost too much. 

So is life though, this doesn't mean I will stop, but it does mean I will be more cautious in the future. 

And to be honest, it was probably the worst financial mistake I've ever made in my life. I used one of the BP local sales people, and after everything was said and done, I realized, I did not do enough on my own end to minimize my own risk. In the end, this is all my own fault, but at the same time, I can't help but feel like I was taken advantage of by this company. I was the sucker on this deal.

My first mistake was trusting the inspection reports without hiring my own.

My second, was purchasing the property sight unseen. 

My third mistake, was purchasing the property only using online reports and not speaking to local RE agents, PMs and sellers.

My history thus far:

I closed on two section 8 properties late 2012, and right off the bat, I got a notice from the county that there was trash on the premise and if they weren't cleared out, I would be fined. Alright I figured, the properties were recently renovated, so I guess some left over trash is not a big deal. A few months later, tenant was complaining about a hole in her ceiling and water damage. I had to replace a roof on one of the duplexes. The original inspection report said it had roughly half life left in it, and did not mention a hole or water damage. I expected regular upkeep and maintenance, but honestly, after going through the accounting for tax season this year. Even without the roof replacement bill, I lost money all year. If it weren't for my other financial backings, these two section 8 properties (both of which cost 55k a piece), would of ruined me financially. 

The property manager stated later on in the year some choice words regarding my original seller, and how they over-priced me on the properties I purchased. And the kicker: not to expect a profit on properties like these for at least 2yrs, after I have personally taken care of all the renovations that the orignal seller supposedly took care of. 

Again, in the end, this is all on me, but I sure do feel a bit salty about it, and will no longer be using said companies services, and recommend against them whenever someone asks for an opinion.

So, let this be a lesson to those of you using online RE sellers. Do your own due diligence, see the property first hand, and check with local PMs/RE agents to see if you are receiving a fair deal to begin with.

I recently(one or two months ago) refinanced a SFH to 4.25%, i found out the interest rates dropped below that in the last few weeks :(

I would say if you look around in woodhaven, and rego park, you could find quad's for sale that are -close- to break even with an OO.

Only reason I know this is because I grew up in sunnyside and on the boarder of woodhaven/rego park. I was looking for something around there about a year ago and found a few quads that would of been decent to live in with 25% down of course.

Found this article online and it made me think of 2007.

Anyone have any input about this?

http://www.businessinsider.com/obama-home-loans-credit-white-house-2013-4

First, a question: What are the going rental rates for the house you are living in right now?

Second, my opinion: If the rents are good, live in it till august, then rent it for about 2 more years since the market seems to be going up as we speak. You have to live in a property for 2 of 5 years in order to walk away with tax free capital gains. Nothing in that says you can't rent it for 3 of those years, so why not have your cake and eat it too? Depending on the numbers, it may cashflow, then a few years down the road you get an even larger tax-free cash out when you sell(assuming it continues to appreciate).

Just my 2 cents. If you need the money now, then there's nothing wrong with selling it, would be better in august. Looks like any way you slice it, you're going to win, the real question is how long are you willing to wait to eat your cake(I must sound like I love cake. Well, I do).

Try allstate. I was shopping around for a quad about 5 months ago and they were the cheapest quote for the same coverage as everyone else overall.

http://www.biggerpockets.com/files/user/EOD_Investor/file/property-evaluation-spread-sheet-1-4-units

I might be considered soliciting, but this is a 1-4 unit calculator i made for quad's.

Just something that might help you out in the future.