All Forum Posts by: Sherif Lyons

You could house hack then BRRRR your way into additional SFH properties or multifamily. I myself am moving back to ATL to take advantage of my home market and purchase a triplex or quadplex with my VA Loan. I'll be using that property as a springboard to BRRRR my way up to 40+ doors.

If I were you id crank that up to every 2 - 3 months a year. at least quarterly inspections. I've worked for a slumlord and now I work for a company managing Class A and B+ buildings. As I've said in another thread, I have never seen a building bounce back from meth being manufactured inside it. Meth will poison the entire unit and surrounding units as well. Heroin needles are a great annoyance and crackheads just steal everything from the building that they can scrap or pawn but id rather deal with that than meth. With the latter 2, you can just evict, light rehab and you are relatively fine. With meth, the financial damage can ruin you if you don't catch on right away.

 I am 100% in agreement with the gentleman above. Its incredible to me that people are looking sideways at this. You got in with next to nothing and your tenant is paying a majority of your costs for the home. Will you refinance the loan in a few years along with annual rent increases to cashflow positive? Will you simply hold it for IRS advantages and sell down the line? What do you plan to do with the home?  I'm not at all averse to this deal but we need more data otherwise you will continue to get 90% NO answers from everyone else.

I would actually recommend this if you are chasing cashflow. The Unit could bring in $1000 gross with one tenant or a couple or it could bring in $1200 - $1300 because $600 - $650 looks cheaper than $1000 to renters even though it isn't. As always be thorough and vet the crap out of your tenants. Also don't let multiple couples rent the same unit, cheating and subsequent drama will take its toll on your property. Make sure to spell out your expectations and be ironclad about them. Please please P L E A S E make sure to hash out who has what responsibilities and when. if you have to print out a cleaning schedule and have the tenants hash out who does what, do it. Make sure they stick to the agreement. It's best to get the tedious bits over with from the get-go vs the drama that comes if you put it off and leave it to the tenants. Not everyone is responsible.

 I can absolutely imagine someone paying that upfront. Im currently a leasing agent but when i was first starting out i worked for a family friend who turned out to be a slumlord. People that pay upfront for rent longterm 8/10 usually have serious issues and generally, seem to be involved in illicit activities. There are exceptions but good luck finding them below B class properties. No matter how bad your bottom line may be, do not accept these people unless its a company paying ahead for them or they are Strenuously vetted. I have yet to see a property that can recover from having meth manufactured inside it.

I'm actually moving back to Atlanta so i can invest in multifamily RE myself, though I'm going to start with a quadplex. Once i have some experience under my belt id love to link up. Seeing success stories in my home state does wonders for my own motivation. If i did have a question, it would be about what areas do you think you will look at in the future? I plan to start in the Stone Mountain area because i spotted some great deals on duplexes - quadplexes but i can't stop looking at the south Atlanta area even though its C - D at best. West Atlanta around Bankhead is out of the question though!

I agree MFH is quite resistant to recessions as long as you are aiming for a B/C class building. In a recession, most renters will not be able to afford to live in an A-class building and you may need to adjust your rents accordingly if you want to maintain a low vacancy rate. Special mention to affordable housing but that comes with its own share of issues and headaches.