All Forum Posts by: Mike Nelson

How is this project going?

Is section 8 a good thing?  Some people have been very successful with it, and others hate it.  If you know how the situation works, you are comfortable with it, and there is a good return, it may work.  I think results vary depending on location.  I would suggest getting information from other Section 8 owners of projects of similar size in this area.

Years ago I was bitten by a tenant's pit bull.  I was very fortunate to have gotten away with just one bite to my ankle.  The bottom of my jeans were shreded.

Growing up I always believed Potter was a total bad guy.  The other day I was watching this classic with my wife, and remarked, "Sure, Potter is kind of an ***, but is in a real tough position in light of the economy, and has to have a thick skin."

If they know there is drugs and prostitution going on, why don't the police put them in jail?

I renovated one of my units for $10,000 and raised the rent from $900 to $1450.  I used the cash flow to pay off the debt to contractor and Home Depot (6 mo no interest).  That part is paid off.  I am using part of the increased cash flow to pay the car payments on a two-year-old Honda CRV I paid $14,000 for at $250/mo. That's the first car I have ever financed, and I have been investing in real estate since 1987.

Several years ago I had a new tenant apply.  His qualifications checked out, so I approved him.  A week later his former landlady called me saying he left the place in a mess and owed a couple of month's rent, despite her partner recommended him to me "just to get him out".  She was unaware I spoke to her partner.  So now I had a tenant I regretted approved, and hoped for the best.  Three weeks later, after moving him, he tragically died by being hit by a car New Year's Eve a block from the apartment.  This one was hard to deal with emotionally for a while.

Good advice above.  There is a chance the deal with his buyer falls through, which sometimes happens.  If this is truly a great deal you may try to buy it if the deal happens to fall through.  I have done this in the past.  However, you need to decide if the seller is someone you want to deal with given what has occurred.

I am inclined to agree you should continue your education to get your degree.  I would be curious about what the developer can teach you.  It may be a good opportunity.  How successful is he?  Have you identified the various skills you want to learn?  At what point can you use these new skills to go out on your own, and what do you want to accomplish?

This is a brilliant concept if it actually works.  You find a long vacant unit, not bringing any money in, you put your focus and energy and management to make it a success.  It is management intensive, as is the nature of the business, but there may be money to me made.