All Forum Posts by: Nik S.

@Hans Agarwal

Back of the napkin numbers... 50% of your revenue received will end up in expenses... so half of $15k is $7.5k... after your debt service, you may be cash flowing negatively. C-D properties generally have higher expenses, especially the older buildings.

@Mike S.

Thanks for the info!

@Johnoson Crutchfield

Losing your EMD deposit could be an easy way out now, consider it another piece of valuable education. It's not a loss but a gain / forward move!

@Johnoson Crutchfield

There’s plenty of better and “safer” deals...I too like to take calculated risks but some aren’t worth the hassle nor risk. The unknown comps is not good, I’ve been down this road before. My finished product was very solid however buyers couldn’t pay the price because of lack of comps. Oh and the school district wasn’t as strong as the neighboring cities.

@Yannes Chiang

Not sure of your states laws however you can avoid the conveyance fee as well as prevent a tax reassessment. This makes sense for high dollar transactions. 1m+

A drop down LLC transaction is a better venue for this situation. Attorneys help structure this, basically the current owners transfer 100% membership interest to a NEW LLC and at closing you get assigned 100% membership interest of the new LLC. Your newly purchased LLC will restart the depreciation based upon your purchase price of the LLC & you then aren't liable for any past debts or liens from the sellers original LLC.

@Leo McDonald

I prefer semi-passive investing to fully passive investing. Restaurant biz is generally FULL ON, HANDS ON! It's a grind, long hours and employee turn over etc...Take that capital and invest into something that doesn't require ALL your time and energy so you can continue to focus on additional opportunities. 

Just my .02 cents. 

@Michael Ealy

I like section 8 tenants too! My recommendation for others would be to utilize S8 tenants where the asset location requires them...DON’T utilize S8 in higher quality assets.

I have some buildings that are mixed, some S8 and some financially responsible tenants. Other buildings are exclusively financially responsible tenants. Mixing is OK just know you’re location and asset class.

People who don’t know the section 8 system don’t really know the requirements. In my area, S8 inspectors and fairly reasonable and we adhere to ALL requirements, it’s not that hard.

Like Michael said, you screen (credit/background) S8 tenants just as you would a finically responsible tenant. In my area, there is a long waiting list on Section 8 vouchers, tenants generally don’t want to lose their voucher status so they adhere to the program rules....not all but a lot do!

@Damel WIlson

I second Cody L. Go multi-fam over the bulk house buying. Economy of scale is much stronger in multi investing. Plus you’ll save a lot of time and money by buying a larger asset than several smaller assets. I’d hate to look for 25 houses to buy....

@Sarah G.

Assuming you didn't market "updated electrical", then that's on them. IF they got a home inspection, then that should cover you as it's their job to look for problems etc. Perhaps they are trying to re-configure something to their needs and wants. They accepted the property AS-IS and now its their home. Also, $700 isn't a major repair. Do you have an agent between you and the buyers? 

@Tony Guardado

Congrats on your # of properties! I utilize a PM company and they use Appfolio. I love it as their client however I know its a costly software. I do feel if you do a search there is more info on Buildium on BP than Appfolio. Appfolio gives your renters the ability to login and make repair requests and see their account balances etc. It's a very accountable software. Easy to view rent rolls, move in info, balance sheets, deliquencies, monthly/annual cash flows...the list goes on.