All Forum Posts by: Matt Leber

@Michelle Kotler I relax income requirements as well on section 8 tenants. Any voucher holder has already been screened to a point by the section 8 program and they have not screwed up bad enough to lose their voucher. I still look for no evictions, criminal history in last 7 years and call previous landlords. Call their boss if they work.

@Michael Slockers yes, that’s him! You know him?

@Kyle Thompson In my market, below 1% rule is a no-go for me on multifamily. But it is somewhat market specific as others have mentioned. If the major components of the property have been recently reno’d, then that certainly helps. For me, less than 1% is tough to justify the double set of expenses, maintenance and vacancies.

@Carmichael Lewis both have their pros & cons. You can probably make more money in multifamily but you will be tasked with solving more problems. The turnover with multifamily might be a bit more often but you also have strength in numbers. It’s not likely all your multi units turnover at once so you only lose a piece of your cash flow. A single family home could have a tenant stay longer (maybe) but if they move out you lose the whole pie. I like a little of each.

@Kyle Thompson I like at least 1.5% rule on small multifamily. 1% is fine but the duplexes will have twice the toilets, twice the tenants to deal with, etc. At 1.5% the extra cash flow can help you cover some of those unexpected issues. We clear about $450 per door on our duplexes in Jacksonville and book about half of that to reserves.

@Eric C. I agree and am aware they will likely be making more money than before the pandemic if they get unemployment. Not giving them rent forgiveness, just allowing the rent payment to have a longer grace period bc they haven’t started receiving those benefits yet. The unemployment system is backlogged right now.

@Jordan Dorey I’m taking the guaranteed rent payment all day given these economic conditions!

@Lloyd Silver I’m looking for 10%+ in Central Florida (Orange County & Brevard County) and Jacksonville. I’m factoring in down payment + closing costs + rehab costs versus 12 months of cash flow with capex/repairs/vacancy set aside.

@Jeffrey De Los Santos I actually got about $175 higher than I thought the area could support by renting to a Brevard County Section 8 tenant. Apparently the housing authority thinks market rent for the zip code is higher than I do! They have tons of applicants looking bc there is a shortage of property owners that will consider it. But I’m going to take a guaranteed 100% paid rental going into this turbulent time 100% of the time.

45% at this time. Its enough to cover the PITI on all of my properties, but so far I'm only 3/7 on collection. I'm hoping at least 1-3 more should pay on Monday bc they never pay until the 5th or 6th. I have been in contact with the late ones and lucky to be in a position to allow them a longer grace period to figure things out while the stimulus comes in.