All Forum Posts by: Rama Krishna

Thank you @Kyle Jean for the help! Let me check some documents and also connect to Novo Co. 

Hi All,

 I am new to multi-family investing, is it advisable to do the first deal on a LIHTC (Low Income Housing Tax Credits) apartment complex? 

 What are the pros and cons?

 Do we need to pay fewer property taxes if we buy LIHTC property?

Any professional help I can get, so we can use their services? 

Its a senior housing in North carolina and these are the FAQ's in due diligence:

LIHTC- Low-Income Housing Tax Credit – Affordable Housing

What administrative work is required to purchase a LIHTC property?

-Within 24 hours of a fully executed purchase agreement the buyer should notice the North

Carolina Housing Finance Agency (form will be provided).

How are rents based?

-Rents are based on 60% of the current AMI (Average Median Income). 

Can I grow rents?

-Ownership can request an annual increase from the NCHFA

Can I also accept section 8 vouchers?

-Yes, you can. 

What do I have to do to be compliant?

-NCHFA conducts a random lease audit sample of 5% of leases every 3 years

-NCHFA conducts a property condition assessment every 3 years

When does the program expire?

-The property is already in an extended use period, in another 13 years the property can become

market rate.

Thanks for your answers,

Rama

@Todd Dexheimer The reason they can provide 20 to 30% is because they are value adding syndication. They convert regular multi family to student housing or do bigger rehab projects/ reduce expenses where they can get higher return when they sell after 5 years. True, i should not base on higher estimate to get into that project. Always have to assume lower end preferred returns. 

Thanks everyone for responses till now - appreciate it very much.

Hi,

 Are there any wholesalers in the RTP (Raleigh, Durham, Chapel Hill, Cary, Apex etc) area in NC? Please send me your details so i can reach out to you.

Thank you and looking forward to working with you,

Rama

Hi All,

 I have created my self directed 401k and i want to know what are the prevailing rates for non recourse loans.  I got some list of lenders from some website like this:

https://www.sensefinancial.com/non-recourse-lender...

But are there any more banks which i should consider?

I am planning to buy/ hold the property for long term using my 401k so i can use the rent for my retirement purpose.

Also what are the pros and cons of non recourse loans for single family properties using 401k for long term.

Thanks for your opinions,

Rama

Hi All,

Can you please share your opinion on what is the best Strategy for long term :

1) Is it better to buy a SFR/ Townhome.

2) Invest in a syndication where they are claiming to have 20% to 30% return per year over 5 year period based on their track record. And keep doing syndicate investing without directly buying any properties.

I am long distance investor looking for either turnkey or recent construction which doesn't require any big rehab work.

Thanks for your opinion,

Rama

I was also in an agreement with an Agent. I would ask him/her to reduce the time or even i would suggest to restrict the agreement only for that specific property if possible. There are so many agents, why to have an agreement from a buyers side? I am not a pro - you can take my opinion as grain of salt. Good luck.

Great points on section 8 tenants @Karl B. and @Account Closed 

All practical information from real experiences - Priceless !