All Forum Posts by: Paolo Ruggieri

yes... I read Limit in GA is 4... So I am going to keep "rooming" houses with 3-4 bedrooms top... To stay under the single family house umbrella ... This might have also simplified the issue with tenants managing fewer people/low scale.

CAP rate for me is very relevant.... As it measures how much I bring home for each $ invested... Expecially when I am trying to achieve a certain $$/month with my portfolio in order to live just from it (financial freedom)

I understand that if I would resell single family house , value would me minimally impacted by CAP rate... But my goal here is to keep it up until gentrification happens in the neighborhood from the Atlanta beeline projects

Thank you

From my experience... You need a great specialized property manager... I have a rooming house property and am going to buy 2 more because I have the right property manager... Add incentives to the right property manager and you will have great net returns... You will still have more calls from the l property manager than other type of properties, but property manager will do 90% of the work. I agree with several comments above ... If you manage it yourself is a job... Rooming house investment is ONLY with a property manager ... If not is a job

I have purchased a small rooming house (3 rooms) and have had a good experience.. It came with an amazing property manager used to this type of properties (rooming houses is all she does) . She managed vacancies, non payments and tenant's craziness ... I am cashing like crazy... Total Purchase and works $36,000 -gross rent is $1500- net income after management, repair, taxes, utilities, insurance, vacancies is  ~$600 (insane cap rate)... I am now converting 2 more properties to rooming houses. One more benefit if you are investing in low income areas is that:

- property is never vacant... When you change one tenant only one room is vacant, but others are in place... This prevents AC theft and vandalism 

- properties in streets that are mostly boarded up do not qualify for section8... For this reason They can be purchased cheap... And these tenants do not care that neighbor houses look bad... Specifically in Atlanta we have a beltline project that is pushing prices very high is streets that look decent... Rooming housing allows you to cash flow with cheap properties while waiting that the street turns around 

Now... You need a very good property manager and you need to be willing to hear crazy stuff that tenants request... Even with a property manager this is no "passive" income... Seems that I get calls every other week from property manager because something is happening... But For me is totally worth it given the huge CAP rate (especially in areas that are at the beginning of gentrification process where you need to survive as a landlord for few years)

all- I did research 3 years ago... By far best option is interactive brokers - $10 per month fee and 1.2% interest rate !

Ltv is based on a complex margin algorithm ... But is it approx you can withdraw 55% if your remaining assets are less than 100k, 75% if > 100k

Interactive broker specialty is investing on margin... They do not see this (or advertise this) as borrowing leaving assets as collateral... They pride the self that you can buy 400k of stocks with 100k cash... But as a real estate investor you can look at it as : if you have 400k in stocks with no debt , you can borrow (withdraw) 300k without having to sell your stocks and you pay only 1.2%

I know it sounds too good to be true, but I tell you I have been with them for years and it worked wonderfully ...

wellsfargo personal, wellsfago business, suntrust , regions bank

Guys ... FYI ... I did get 4 line of credit applying simultaneously at different banks... It worked

you can lease property with permission to sublease it and have a purchase option... This is a classic no money down technique for apartments... It takes quite a bit of hussling... PM me and I can explain 

I use a GC that is also an architect, is very reasonably priced and does timly work. PM me and I will give you his contact. His quality is not suberb (well you can't have everything) but he has proven to be a good balance for quality-time-cost... Given the areas you are mentioning I think his quality should be fine.  

question for Austin - why would you charge a small fee? Is it just to screen who is really interested and who is not?

Terri PM me