All Forum Posts by: Tech Cheng

 hi Dana,

I've currently own 2 properties in Mono with section 8/HOC. one tenant for over 10 yrs and one for jus over 1 yr. I'm also currently helping out a client/ investor to find his first HOC tenant.

here is a list of fair market rents, they may be updating it as Moco had a crappy rent increase cap ("covid cap" till may 12-13th 2022?) that you could only increase from 2021 into 2022 up till the may date ONLY up to .04% when inflation #s are over 7%...they used to follow the COLI for social Security in late November/early December of each year.

the fair market rents spreadsheet by zip code here: https://www.hocmc.org/extra/81...

If you like to connect please email me @ tcheng38@gmail and reference this post.  

FYI I will warn you the cash on cash on most of properties is under 8% which doesn't excite me personally. although better than sitting in the bank.

Hi Rebecca,

Do you know anything about the STR regulations for long pond, tannersville and henryville? Thoughts on these areas. I'm looking to purchase my first up there.

thx,

Tech

@Ofir Weintraub

What Mia said is good advice. If you own the condo free & clear you have lots more options.

1) either way (if you still have mtg) look into Airbnb (higher rental rate but more turnaround)

2) if you own free and clear you take out a heloc or cash out refi some more cash to invest into another property

3) what it'll come down to I think is your situation and how much work you want to do. Do you want to manage yourself or have it turnkey? If you want turnkey then look for the best COC return and I'd suggest investing in markets that can appreciate like Atlanta, Texas (Dallas/Fort worth, Houston and San Antonio), Az/Phoenix that way you get the equity when you sell.

@Mia Gorkowski

I’m looking to use retirement fund to invest. Heard about the Cares act distribution (if you’ve faced covid hardship-which I am)

So wondering if it’s better to take the 401k funds out before end of 2020 (tax breaks) Vs rolling it into SDIRA to invest in rental?

Any thoughts, if SDIRA which companies-I know we got some on BP perks.

Thanks

Thank you @Michael Stults & @Solomon Morris

We made a little profit since we had a hard money loan but learned a lot in the process. 

@Shadonna N. Thanks. Yeah there was room if we rented out the upstairs which was 4 bed, 2.5 bath for about $2500 and the basement for another $1000 but we got a contract so my partners & I decide to exit.

Even if we broke even monthly we were hoping that after 1 year the house appreciated and we could relist it & avoid capital gains. Also we should have gone in thinking more rental than flip so the rehab budget would have been closer to $60k than $85k.

Thanks

@Lamont Marable I would do another auction but the price & auction fee has to give us enough spread. In retrospect we could have cut the rehab budget down about $6000 as well.

Investment Info:

Single-family residence fix & flip investment in Laurel.

Purchase price: $375,000
Cash invested: $85,000
Sale price: $585,000

foreclosure bought at auction that had moldy and wet basement--6" of rain with summer storms until we closed. We completely redid the basement-remediate mold, new drywall and studs and added a laundry unit and kitchenette downstairs. Main floor we added engineered planks, new kitchen including quartz waterfall island. 2 nest thermostats, new carpet upstairs and new 4 piece master bath. replaced 4 broken windows.

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

we got what we thought was a good deal, the 5% auction fee hurt a little but we got a price reduction b/c of the rain in the basement.

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

hubs..i'd probably stay away from auction sites but we still made a profit just not as much as projected

How did you finance this deal?

hard money

How did you add value to the deal?

we upgraded lots of stuff on the main 2 floors but the value was the basement. we added a kitchenette and separate laundry unit so the basement could be used as a 2 bed/1 full bath rental since it had a separate walk up entrance. The new owners, if smart could have rented the basement for at least $1000...in retrospect we should have BRRRR this but it was our first deal and we didn't have the funds and experience to flip the loan over to a rental loan. great learning experience for us

What was the outcome?

sold but it took about 2 months longer than expected. we closed in late september, finished construction in late december which was about 3 weeks later and the house got on market in Jan 2019. we got more than full price offer on the first weekend but the appraisal came back at 550 and the contract price was 592K.....we got our own appraisal and it came back at 580k. the buyer decided to pass and it took another couple of months until we got another contract that we felt was best.

Lessons learned? Challenges?

probably should have BRRRR this since it was in a perfect area near highways, shops and between DC and Baltimore but since it was our first flip we wanted to exit the deal and have it on our books.

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

we used lending home hard money and it was pretty good

Hi Joseph,

my apologies ahead of time if you find this annoying/wrong to solicit but my partner and I are actually looking for multifamily in the DFW, mostly FW area. I'm hoping you could help.

If you have any listings, we're interested in value add in B/C neighborhoods, C class buildings maybe D if its a really good area.  Ideally looking for 10-35 units, around 5.5-7 cap and up to 3.2 million purchase price.  

If you have actual financials and current rent rolls please send to [email protected]

 Thank you,

Tech Cheng