All Forum Posts by: Robert S.

No harm in doing that. I've done the same. It's a good way to build capital. I've also held nicer rentals in the right areas and commanded higher rents with success as well. Just depends on availability of more properties in your area to invest in if you sell, and your overall goals as an investor. Depending on the area a nicely improved home may pull higher rents too, so keeping it could work as well. Just remember to factor all your numbers if you sell, agent fees, capital gains tax, property transfer tax, etc. Either way is a win, hence why we love real estate investing

The end of unemployment benefits are the least of my concerns. I am more worried about the continuing economic fallout from the lock down. Now there is talk of a second wave, and a reinstatement of further lock downs.That would likely destroy the economy for a very long time. As a previous poster pointed out, even when the benefits end, there are fewer jobs to return to. 

The powers in DC have made sure that the wealthy are going to stay well by pumping up the stock market and asset prices. This helps the wealthy and the well paid corporate execs.

The unemployment benefit of $600 is similar but for the working class and the middle class.

By pulling the plug on that stimulus the working class is going to be exposed in an adverse fashion.

I really think people are underestimating what we have in front of us which is a colossal economic crisis that will dwarf the 2008 financial crisis and take many down. This one is bad folks, just ask the people who work on Broadway in NYC or in the Hollywood studios in LA or in Disney Land in Orlando, they are not misusing they benefits. They can’t go back to work. Add on top millions of service industry workers all around the country. The $600 is a need right now.

The bottom line is the government needs to defeat the virus, make people feel safe and get them back to work.

Investment Info:

Large multi-family (5+ units) buy & hold investment in Warsaw.

Purchase price: $139,900
Cash invested: $34,975

5 Unit Apartment D-C Class paid for by leveraging a single family rental! Excited to get this underway and really start my investing career!

What made you interested in investing in this type of deal?

First step at multi family investing

How did you find this deal and how did you negotiate it?

Met a local real estate investor, became friends, bought this off of him

How did you finance this deal?

Leveraged my single family rental for the down payment

How did you add value to the deal?

Got value in the deal - Also didnt have to use a Realtor because I am one

What was the outcome?

Me getting a 5 Unit

Lessons learned? Challenges?

Networking is everything!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Geoff Cavender I would highly recommend him to anyone in the Warsaw area

People who are afraid of HOA properties don't understand how HOA are a benefit to property investors.
. Review HOA financials before purchasing to ensure they are solvent.
. Review all Capital Improvements by HOA for past 3 years
. HOA's pay for things that investors would pay for anyway on a non HOA property..

My HOA properties pay for Roof,Exterior Maintenance,Landscaping,Common areas,and pool costs. All of the things that attract a higher class of tenant.

Every investor who knows what they are doing have a line item for External Maintenance. HOA fees.

As far as the 50% line item in HOA rule. unless a HOA can show you via a certified survey that the neighborhood is already at 50% non owner occupied then that is NOT enforceable. Courts routinely tell Condo HOA's that they can designate building as non rental building.

The idea that a HOA tels you that you cannot

I look for properties where the HOA fee is no more that 8-10% of expected rent and expense it off for what it is Pre-Paid Maintenance and Capital Improvements.

@Linda S.is incorrect that HOA's can change fees at any time. HOA's typically raise rates a few dollars every year to cove increased maintenance costs and things like replacing railings are a Capital Expense for tax purposes.