All Forum Posts by: Jacob A.

Hey bigger pockets! I need some help

I need a lender who will lend money on a 5 unit apartment building! 

We have cash for down payment and reserves. Just need to find a lender who will do the 5 unit building. 

Any and all suggestions are appreciated! 

Hello Everyone, 

I am new to the Jacksonville, Florida and I am looking for some contacts in regards to real estate agents and brokers who work with investors. I would appreciate any help you guys could provide to me so I can build a team here in the Jacksonville market!

Thanks!!

@Joseph Hammel

The $9.00 monthly fee is the plan I am on and will continue to use until I get big enough to upgrade to the 29.00 monthly plan. 

$9.00 covers up to 150 units and it does everything needed for most landlords. 

Here is the link https://www.tenantcloud.com/pricing

@Joseph Hammel

Seems like you are doing well for yourself. Great job!!! 

I personally like the interface that TenantCloud offers the users. I highly recommend their services and have never had any issues with the company. Check them out!

@Libby Baugher

In my experience, I have never had a bank tell me no to a refinance as long as the financial numbers were met. I have very rarely met a bank that wouldn't provide a loan to a consumer as long as the numbers for the property work. 

Just my experience. 

Hope this helps

@Michael Piccolo

The area isn't a bad area of town. It is just about 15 miles outside of town. 

The expenses I calculated included insurance, taxes, and an additional 10 percent for miscellaneous. 

I am just curious about the housing authority and their reliability of paying the owners of these properties

Good Evening BP, 

I am running numbers on a potential deal and I assumed that I would go with wisdom of the crowd to help me make a more educated decision. 

I have come across two duplex units ( 4 units total) that I believe I could get for roughly $80,000 collectively. All 4 units are in relatively good condition and minor repairs ( Under $4,000) for all rehab in all units. The average rental in this area is between $550-650 per unit per month and the majority of the properties are currently rented to section 8 housing authority. Taxes are $1500 all inclusive for both properties and insurance for both properties would run $1200 collectively annually. 

Recap:

-80K purchase price for 4 units 

- $600 per unit in rent ( $2,400 a month) 

-Expenses after Capex and loan would run $595.00

-Cash flow would be $1859 monthly

I am curious if anyone here has any input to the reliability of section 8 tenants? I have done some research into the situation and it appears that the local housing authority has strict rules for the recipients of their services. 

These propertjes will not appreciate much if at all due to the nature of the tenants. 

Would you do this deal? What worries would you have? I have not had personal experience with section 8 or housing authority properties. 

Advice and input is welcome.

@Eric Eckman

Congrats on taking the steps to move into the real estate investing world man. 

My advice is this. Find a deal first that makes sense. Then worry with the rest of it. I personally tend to lean the way of using the owner occupied strategy due to the numerous options for financing. I would not get caught up in the whole LLC vs S Corp vs Personal debate just yet.

1) Find a deal

2) Make sure that the numbers work on the property

3) Contact lenders and use it as personal residence for a bit 

4) DONT  GET CAUGHT UP IN LEGALITIES THAT WILL COST YOU THE DEAL 

Hope this helps and again this is just my opinion!

Best of luck!

@Terry Burwell

These numbers seem to be okay for the deal. Great questions to the agent! I also would just make sure that your rental estimates moving forward are accurate because if they are, then I think you should definitely go forward with this deal. If the rental estimates are not correct, I would be a bit more hesitant but that is just my opinion. I personally don't trust the Zillow estimates when it comes to value. 

Best of luck!