All Forum Posts by: Vinay M.

I'm about to purchase a two unit apartment building in the NYC area.

I know some mortgage brokers locally but feel like they are quoting higher rates because they are based here.

Can somebody provide some contact info for mortgage brokers located in other parts of the country that may be more competitive?

Another Section 8 question.

As I mentioned in a prior post I am looking to make an offer on a duplex with an S8 tenant already renting one of the apartments. The rent income from that unit is below market rent and I think there would be paperwork/red tape and headaches to increase their rent.

Once I buy the building it would be easier simply to not renew their lease and then put in market tenants.

Is there any complication/legalities in not renewing the lease of a S8 tenant for this reason?

One thing I did not see mentioned was return.

What is the minimum ROI you are willing to accept for putting your money at risk?

A lot of accredited investor real estate investments yield less than 10% nowadays, hardly worth the risk or effort.

Ha! When I saw the post title I knew it would be topping the list for something negative.

Like taxes, red tape, rate of residents leaving for other states (this goes for NY, CT also).

thanks @Account Closed This building has separate electricity and gas meters but common water so I think that should be fine.

You mentioned that the Specialist at the Housing Authority would chase down the missing rent it I informed them - sounds good but would they really do that? What incentive would the Housing Authority have to make sure the landlord is made whole? 

Great thread!

I am looking at a duplex in the NYC area. One unit has Section 8 tenant already there and the second unit is owner occupied. Owner will vacate upon selling.

My plan is to get another section 8 tenant in the second unit. But I have heard about the lead time involved with the inspections, red tape etc - having it sit vacant for 2 months is a bit daunting.

question1:

Can I just fill the second unit with a regular tenant? Is there any rule stating you cannot have s8 + non-s8 units within the same building?

question2:

I see here on BP that s8 landlords frequently play cat and mouse with the tenant where after they receive the government direct deposit, they have to chase down the 25% or 30% that is paid out of tenant pocket. Is this pretty much a given that this will occur every month?

https://www.bloomberg.com/news/articles/2017-01-03/wall-street-america-s-new-landlord-kicks-tenants-to-the-curb

I've looked in my area and in the surrounding tristate area but the out of control property taxes are a cashflow killer.

Not only are the tax rates high but the growth rate of property taxes is highly unpredictable. It is subject to the whim of each local government and its assessor.

I am looking elsewhere like in the midwest.

@Scott Trench Thanks that article is spot on in discussing this issue.

They say that to keep ahead of CapEx expenditures you basically need to be making at least $1,000 per month in gross rent. Using a conservative 1% rule that would be a $100k house.

I guess that supports the argument that owning a fewer number of expensive houses is typically better than having a large number of cheap houses. 

But I think there is an optimal point - one shouldn't go too expensive or high-end where you could end up dramatically reducing the pool of potential tenants.

 interesting. can you PM me the name of this company.

Thank you