All Forum Posts by: Eric Telese

I am currently closing on a duplex with a section 8 tenant in one unit. That sec8 unit is actually getting $240 more per month. The units are more or less identical. So far with research it seems like you can usually get market rent if not higher with sec8. When your unit does go vacant, do you actually have to decide whether your unit will be “section 8 or not”? Assuming this is voucher based section 8 where it follows the tenant, couldn’t you just advertise the unit on both section 8 as well as normal rental listing sites? So if someone with section 8 vouchers comes along and wants to rent your unit that is advertised on regular listing sites, they can. As long as it passes section 8 standards and paperwork. This is the impression I am under.

@Mendel Robbins yes both tenants are staying for at least the remainder of the lease. They are both on their second lease so hopefully quality tenants. The current owner was a landlord for 30 yrs so thinking he would have some good screening in place.’

We were looking in pretty much all the markets discussed in the original post of this thread. This is our first deal. Can't wait to secure it in Janauary and get a couple months experience under our belts so we can hop into the second one! Probably going to be a BRRRR!

@Mike Lambert are your rentals a part of something bigger? Such as in a resort where renters can go and eat, pool, drink, etc.

@Mendel Robbins almost! We are closing on a duplex come january (seler wantes to wait to close til new year). Appraisal comes back this Friday, so fingers crossed. 

It is a fully occupied duplex that I found off-market through one of its sister property listings. (They were all part of a 25-property package). 

One unit is section 8 occupied, with the government portion enough to cover PITI & management fee. The rest plus other unit rent will provide for vacancy, repairs, capex reserves plus cashflow.

It is located in Riverdale, owned by a long-term landlord looking to retire. Most things kept up on besides some HVAC issues that we will have to address as they come up. 

Hi all,

My long-term goal is to purchase a rental property in Mexico, Dominican Republic, or somewhere similar. I just got back from Playa Del Carmen on Sunday, to some snow and 30 degree NY weather. Too early for that! I love it here, but want to have a place of my own to rent out for income, and go visit whenever I want.

I have stayed at some resorts that have a condo/apartment section that you can purchase, and the resort takes care of marketing, booking, cleaning, etc. There is also a lot of new construction in parts of Riviera Maya on the east and Cabo on the west side. In La Romana, Dominican Republic, I have stayed at Casa de Campo which is a huge resort that offers private villas of all sizes in a neighborhood-like feel. They have golf-carts for each villa to get around the resort to the beach, pools, restaurants, golf course, etc. I visited their real estate office where they offered villas as well as land lots for you to build on and have the resort rent out to vacationers.

Does anyone have any experience with investing in these markets or anywhere similar?  

@Sam Shueh we have enough reserves to take care of any upcoming issues. We do not plan on paying the mortgage down more each month. We prefer to save capital towards next deal to allow us to scale more quickly.

@Russell Brazil thanks for the input. That's the exact one we went to. Still wanted to achieve our goals of $200/unit and ROI over 10%. The higher rates were spreading that too thin.

Additionally we have $2200 closing cost credit coming back to us from seller, happy about that as well. That's what you meant by subsidy right?

Now waiting on appraisal to come in a week or two. This is our first one so not too sure what to expect.  Fingers crossed it comes in at agreed purchase price or higher!

@Rich V.

Hello and happy Monday everyone!

Currently under contract on a duplex and need to chose a rate option that has been sent by our lender. As rates and closing costs have an inverse relationship, we are faced with a few different options. Below I have listed the different rates, with the varying closing costs and out-of-pocket cash amounts needed:

Rate	Closing Costs	Cash Needed	CashFlow	ROI
4.750%	$ 9,812	$ 53,812	$ 483	10.78%
5.000%	$ 8,642	$ 52,642	$ 466	10.61%
5.250%	$ 7,956	$ 51,956	$ 448	10.34%
5.625%	$ 6,156	$ 50,156	$ 420	10.05%
5.875%	$ 5,132	$ 49,132	$ 402	9.81%
6.125%	$ 3,962	$ 47,962	$ 383	9.58%
6.375%	$ 3,670	$ 47,670	$ 364	9.16%

Do we take a higher interest rate for a little less return, in order to save some cash to put towards our next deal? Do we take a lower rate with purchase points due at closing (I have incorporated points into the closing cost amounts) for a higher return? Or am I thinking way too deeply into this and need to just pick a happy median? The payback periods from the most expensive option range from 4-5.5 years. This is our first property, so we may or may not hold it long-term.

Thanks for any input!

That's great. What is the cost for comps inc? I have tried making an account but it is not working yet.

Haven't thought about that yet to be honest. I figure if the agent would be the one listing it for me at the ending, we could come up with a good price to end with. The house is 1,612 sq ft with a 9,936 sq ft lot.

No, Glen Cove is its own city.

@Craig Schneider Thanks. I have never heard of them. Will check it out.

The Property I have in mind is extremely distressed, needs a complete rehab, new kitchen layout, maybe electrical/plumbing, etc. Are the comps I can get on that site all for move-in condition properties? Or will I be able to figure out what a property like this would sell for?

I was thinking finding an agent who would later rent the place or sell it as a flip would be able to tell me future ARV, rent potential, and current market value (in such distressed condition).

Thanks!