All Forum Posts by: Jayme Duff

I have an investment opportunity where the owner/seller has a reverse mortgage on a property that needs rehabbing.  The balance of mortgage is above what I would be willing to pay for the property in its current condition but is well below what it would be worth with an extensive rehab. An extensive rehab out of the gate would not make it a good investment in light of the mortgage balance and purchase price. A "lesser rehab" would allow me to make a great cash-on-cash return with the property under a long term lease with an option to buy at the prevailing mortgage balance.

is there anything I should consider with respect to the reverse mortgage on the property from a legal standpoint? Does this sound like an attractive opportunity? 

Perceived unattractive scenario: 

* $254k reverse mortgage

* $125k extensive rehab costs

* $330k ARV

Perceived attractive scenario:

* $500 per month master lease with a 5 year option to purchase for $254k

* 25k limited rehab costs with potential to rent for $1400 per month

Its likely accurate to assume the hardest hit by Covid-19 (economically speaking) is the low income or lower middle class workers in the service sector.  Many are likely to be renters and will be struggling to make monthly payments going forward.

When contemplating an investment in small multifamily during and post-crisis...how target rich will be distressed sellers holding small multifamilies with incomes based purely on market rents as opposed to subsidized Section 8?  How long does it take to get approved under Section 8?  Is it a good strategy to target distressed sellers collecting non-subsidized and begin the process of converting to Section 8?  Will seller financing be a good approach to execute such a strategy?

I'm exploring the opportunity to invest in a small seasonal rental property in Massachusetts.  The property has deeded beach rights and is a short walk from the ocean and a small community beach.  The seasonal rentals in the area are strong and my plan is to place an off season tenant in this fully furnished property between October 1 through April 30th at market (or slightly below) market rent.  I would like to book the property at much higher short-term seasonal rent rates between May 1 and September 30th.

Has anyone had any experience with a mix of seasonal and off season rental for the same property in Massachusetts?  Does anyone know the laws if having no experience?

Thanks in advance

Jayme