All Forum Posts by: Mario Cuartas

@Jill F.

Great points. There are great people everywhere, regardless of their economic status. I can also appreciate your guidance on watching out for the crazies. You mentioned that social security only covers up to $750, so do you feel that when rent is over that, let’s say $800, it helps to weed out some of those crazy tenants that “cannot be helped”?

@Brent Benoit

This is helpful. I guess as long as you are going into it with the right expectations, then you won’t be surprised by the outcome. I appreciate your perspective. I am assuming section 8 housing follows specific guidelines based on the state you reside in, but how difficult is it to get section 8 tenants?

@Albert Le thanks for your input. I am closing on my first rental in a nice area, but have seen a lot of opportunity In a worse part of town. I am definitely weary myself, but I also want to make sure I am not passing up potential opportunities to both make great cash flow but also make an impact on the community.

Does anyone have an investing strategy of buying and holding property in low income neighborhoods?

I have heard the saying, “the poor” need housing too. I am curious if anyone has made a niche out of this type of investment strategy? If so, what should I watch out for? Do you just estimate more for caps x, maintenance, and other reserves?

The other day I walk through a property in a not so nice neighborhood, and it was absolutely disgusting. I could not believe those people lived in such horrible circumstances in the USA. I also thought, “how shameful on the property owner who allows his tenants to live in such terrible circumstances”. After seeing that, I got this over whelming desire to provide affordable housing in low income areas and actually take care of tenants. Maybe low income tenants do not take care of their rentals because the landlords don’t take care of them. I am a big believer in the invisible hand, so I fill like if great land lords treat people great, they will return the favor. Is my thinking flawed? What do you think?

@Joel Gonzalez I have lived in Phoenix for three years, and have found that even in less than desirable areas there are pockets of bad and pockets of good. Ultimately, in my opinion, Scottsdale is very nice but pricing is very high. Downtown Phoenix has some very nice areas that are being revitalized, but there are also a lot of areas with high crime and homelessness. I would stay away from Maryvale and southern Glendale, these areas tend to have higher gang related activity, murder, robbery and so forth. Peoria, Northern Glendale, sun city, surprise, and everything north of 101 north is pretty nice for the most part with some less than ideal areas sprinkled about here and there. As for the east valley, Gilbert, Chandler and Ahwatukee are really nice. Mesa has an older part of town that has gotten worse over the years, but newer areas and places like Lehi can be really great to invest in, but you would have to touch base with someone from the East valley to give you some guidance.

As far as affordability, the west Phoenix neighborhoods are much more affordable than the east neighborhoods. Prices for the same house can vary up to $50k+ from west Phoenix to East Phoenix. You will likely have higher income renters in East and more middle class families in the west.

@Bonnie Low thank you for the advice. I will definitely do that. I have found that running comps for multi family is more difficult in the area I am investing in, but some have sold in the last few years. I will definitely do my due diligence.

Has anyone ever invested on a MFH that has been in the market for over 365 days?

There is a property I am looking at, in a really hot market, that is a 4 unit MFH with all 1:1 units. The property is Being sold for $76K and is worth 180k. There must be obvious reasons so many people have passed up on this one, however, I see it as an opportunity. If I am able to get it for $45-$55k and invest $85k on rehab, It could generate great returns. Many investors have seen it and passed up on the opportunity, which really scares me. Does anyone have any success stories of buying a property that no one else wanted? As a new investor I feel that I am very naive and willing try things that seem very scary to some tenured investors who have become overly cautious due to past failures. Sometimes I wonder, have they become jaded and pass up on Greta opportunities just because they have become overly cautious? But I also wonder, other investors were wiser than I, so I should pass if they all have also.

I plan on walking the property with a contractor before placing an offer with the intent of scoping out the needed work on electrical, plumbing, roofing, and the foundation, which would be the big ticket items, along with all other work.

What do you say, should I run like the wind? Or explore it further? What advice do you have for me?

I am looking at purchasing single family homes in Arizona, that have a lot of square footage and converting them into duplexes. Does anyone know anything about the potential zoning challenges I may encounter? Cities you recommend I look into? Other considerations I should keep in mind when doing this?

@Dalyn Hazell

Absolutely love Deal Check! It’s simple, quick, and pulls all the numbers right in! Thanks for the heads up!

@Dalyn Hazell

Just downloaded it! Thanks for the heads up. I will check it out.