All Forum Posts by: Sudhanshu Singha

@Nathan Lee You should check with a lawyer for your specific jurisdiction but I believe even if your lease contained language canceling the lease on sale of the property the tenant would be considered a holdover tenant and the moratorium would still apply.

@Seth Rob I believe in your situation that your tenant would be considered a hold over tenant and you will need to go through the same eviction process as if they are not paying rent regardless of the lease ending date. 

The eviction moratorium was supposed to end on Sept. 7th in Virginia but with the new CDC order you might not be able to evict until next year. The way things are going it is going to be very difficult to evict anyone during this Covid-19 pandemic but some relief may be coming to landlords by the way of local/state or federal legislation. You may want to try offering 5k+ to entice your renters to move since it is better to cut your losses now then possibly be stuck without any rent for 12-15 months if a national moratorium gets passed next year for the entirety of 2021.

@Heidi Johnson If you don't mind can you also send me numbers for your Air BNB. I feel like so many people in NOVA are stuck in their condos/townhomes all day that they would love to take a vacation in an Air BNB where the area is much less congested! I definitely think it is a risk worth taking as long as the numbers make sense and the SFH purchase price is not inflated due to potential Air BNB demand. In NOVA trying to cash flow right away is very tough unless you put down a large downpayment so this sounds like a good alternative.

@Nick Wilkinson I believe @Dean-Ross Schessler rule of thumb for your example would be that you should cash flow at least $3400 a year or around $283 a month. I got the $3400 from multiplying your gross monthly rent by two to get $3400. Another common rule of thumb is making sure your gross monthly rent is at least 1% of your purchase price. If that is the cases then you should be able to cash flow regardless of where you purchase the property. 

I also believe that you got a awesome deal with your bank since it seems like they gave you a low interest rate along with 100% LTV. The local community bank offered me 100% financing for investment properties but only 80% of it would be at their commercial property rate of 5% and the other 20% was basically a personal loan at a rate of 9.5%.

As others mentioned above there is risk of being over leveraged and that risk can be very high if you are taking out balloon loans and will need to get the property appraised again in a few years. If you plan on keeping the property long term, have fixed long term financing, and are currently cash flowing after taking into account reserves then I think your risk is only marginally higher than any other real estate investor.  

@Westlake John if your losses are due to depreciation then it should not prevent you from qualifying for more mortgages in the future. So I would not necessarily say showing a loss will hurt you in qualifying for a future mortgage. 

@Robert A. Coloma Look for commercial lenders if your DTI prevents you from qualifying for a conventional mortgage. The downside is that you will be paying a higher interest rate and the interest rate may not be fixed. Commercial lenders will focus more on Debt Coverage Ratio (DCR) rather than DTI.

@Michael McDonald Go the the local website of the jurisdiction where the property you are interested in is located. You should be able to find the rate there but the format may be a little different. For example you may find that instead of the website saying that the property tax rate is X.X% it says something like the tax rate is $X.XX for every $100 dollars of assessed value. I am from Virginia so I am not sure whether that rate is high or not for Ohio but I do know in new jersey they have property taxes in many jurisdictions which are 2.0% or higher of assessed value. 

@Wesley W. I do self-manage but you should check out Ingram & Associates. I don't have any direct experience with them but they have a big presence in hopewell as a property management firm and also as a real estate brokerage.  

@Ronak Shah You can also try Zillow if you are not getting enough quality leads with your current advertising portals. You may have to pay $9.99 per week depending on the market that you are in for zillow though. In the market I am located in it is worth it but I think it really depends on what market you are located in. 

@Wai Chan Have you considered refinancing the remaining mortgage principal into 30 year loans? Since you bought your homes a while a go and used a 15 year loan your mortgage principal should be low enough for you to cash flow quite well if you refinance your existing principal amounts to 30 years. I believe after 5 years of a 15 year loan you would of payed down around 30% of your original mortgage principal. Yes you would be paying a lot of money in closing costs but you now be cash flowing a good amount each month after taking into account reserves. 

Also maybe your PM does not have a handyman available for minor repairs and uses more expensive contractors. With repairs related to toilets and plumbing in general its the labor costs that get you for minor repairs since plumbers can charge $80-$100 per hour for labor. To really save on costs like that you have to have local handyman who is reliable and is not overbooked with requests.