All Forum Posts by: Greg Castor

I'm curious as to what interest rates my fellow B-P'ers are getting for SFH re-fi's. I have a few more BRRRR's in Southwest Missouri that are about ready to re-fi, and am looking to see what others are getting for loan terms.

David Nail, I followed up with the owners of this property a couple of months ago and they had just found a buyer and were about to close on the property.   If I happen to run across another similar opportunity, thanks to those of you in the BP community who have reached out to me, I now have contacts to work with. 

Current vacancy is very close to 100% and there is generally a waiting list. The market rents are good, expenses are in line, but you can only report a few thousand dollars of profit or there will be no additional rent increases. All other investors who were interested in this planned on managing the property themselves, and were going to use this to put the bulk of the "profits" in the management expenses. I planned on hiring a property management company (who must be HUD appproved), and because of this, I had no profit shield. As the current owners explained it to me, approx 2% was the most profit allowed. What is the best way to handle this? I don't know if it is still on the market, but I would love to find a way to make this work.

Ryan, I tried every way I could find to make this work, but the HAP contract prevented me from taking any substantial profits, and operating it separate from the HAP contract was not workable because the units would be difficult to keep at high occupancy levels.   Did I miss something?

Thanks for your response, Zach.  In this case, the occupancy is at 100% with a waiting list, but it is only due to the HAP contract for the property.  The town itself is very small, but draws from a larger town nearby.  I believe the red tape has a lot to do with this.   

I have found a Low Income Senior Housing apartment complex that is operating under a HAP contract from HUD. This property is in a very tiny town in rural Missouri, and if it were not for the HAP contract, the community would not otherwise be able to support the apartments. I have never been associated with HUD or HAP contracts in any way, but the very low purchase price and very good condition of this property captured my interest. By all other conventional measures, the property is a steal, and I would buy it in a heartbeat, but I am finding it very difficult to get good information from HUD and others as to how to manage this type of property to maximize profit. It seems capturing profits under this type of scenario is quite elusive. What things are required for a for-profit investor to make this worth his while? All input is appreciated.