All Forum Posts by: Veronica Giggers

The expected rents in that area fluctuate a lot depending on which part of NE 18th you are on.  

@Veronica Giggers How long can you support negative cash flow. That extensive of a remodel will increase your property tax. Googled average tax and it is .085 of ARV. You tax will go up to around $225 per month. Your all in is 280k for $2100 of income. Unlikely you can find PM for 5%.

Submit a cookie cutter letter of intent you can personalize to each property vs a full 26 or whatever page offer. 
Mine is friendly and outlines 3 scenarios I'd be happy with.  
If the seller shows interest in a scenario, then do a formal offer. 

SRO. single room occupancy. are in HIGH demand with populations who are getting served by DHS-dept of human services. think of domestic violence, homeless, exiting or enter jail, prison, rehabs -for physical or mental reasons -accidents, surgery, breakdowns etc.; divorced, teens exiting foster care (18-21 age). yes there is a need. you need to know where your clients will hail from. there you will find them at DHS/DSS/WIC/DV/ agencies. single rooms, shared kitchen, bath etc. all very commonly used for "temporary/shelter care" housing. for 30days to one year. pending --usual things like court hearings, sentencings, adjudications, or pending finding a larger unit to reunify with children taken by CPS. be ready for drama. but if you work it hard-the state/county/federal will pay. HUD pays. just expect to not be paid on time & deal with paperwork! it is my area of expertise--i suppose.

As it depends the location and demand of the area. As some places as higher demands for 1B1B due to the high stats of singles or a state that only attracts for job opportunities. However, at OK due to the land availability and population being 3.987 million...I personally would lean towards more bedrooms as it's being ranked 18th highest marriage rate in the country = more family members in the single household.

@Albert Bui @Carlos Valencia

As an experienced property manager, I have no qualms about one-bedroom units. Steering clear of them is outdated advice in my opinion. 

One bedroom units are very popular and easy to keep rented to single people and/or couples, because they are usually a relatively low cost housing option. They experience much less vacancy that a 3/2 home, for example. 

I do, however, have qualms about leasing to homeless or near homeless individuals (veterans or otherwise). Let me be clear: I am a retired military veteran myself with 22 years of service, and I do think it's a noble and honorable idea for you to want to help homeless veterans with housing. 

But I am also an experienced property manager with experience with the VA's VASH program, as well as similar programs for non-veterans. As such, I have grown jaded over the years and can tell you that in my personal experience 90% of these tenants don't work out. Often due to non-payment as soon as their benefits run out, and other times due to drug and alcohol abuse or mental health issues.

Just make sure you aren't looking at it through rose colored glasses, and understand what you are getting into. Managing tenants on these programs requires 2-3 times as much staff time and energy as managing a normal class B to C rental, and these units will very often experience much higher vacancy, collection, and eviction-related losses. 

That doesn't mean you shouldn't do it. These are just the cold hard facts. 

This is a question that a lot of investors ask themselves. My first questions would be, how much is the purchase price and what do the units rent for? Turnover is going to be more on a 1 bedroom, no doubt so take that vacancy into consideration when running your numbers. 

Also, while it is nice to help out the homeless (I love the fact you want to help vets), your units could take a beating and require serious rehab after. Not all homeless will trash your place, just like not all section 8 tenants will but there is a higher possibility then if you were renting to A-B renters.