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20 December 2024 | 4 replies
When lenders calculate your DTI and your owned properties are breaking around even or a little cash positive from rents, do they basically look at those as no debt or even positive income to keep giving you more loans?
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20 December 2024 | 12 replies
One positive I can see is it could help some tenants boost their credit scores, while also incentivizing them a little extra to pay on time.
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21 December 2024 | 1 reply
Strategic negotiations secured the property at $170,000, positioning us for a quick and lucrative resale in a thriving market.
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2 January 2025 | 36 replies
that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.
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27 December 2024 | 18 replies
The risk that the borrower can default, the risk that you will have to foreclose, the risk that you will have to take over payments on the 1st TD if you are in 2nd position, the risk that you have to invest $$ into the property to sell it...
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13 December 2024 | 8 replies
But there's no body of case law indicating that to be a concern.
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24 December 2024 | 12 replies
If you have deep pockets, I think Austin will eventually reward you, but if you are a newbie in real estate looking to cash flow positive day one or shortly thereafter, Austin is probably not your best bet in TEXAS.
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23 December 2024 | 8 replies
You could easily flip this article around to show the positives.
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26 December 2024 | 18 replies
It might be one of those positive sunk costs to increase the value when financing.
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19 December 2024 | 4 replies
I always make sure that the properties are cash flow positive, but the large bulk of the money I make from them is from the other items (appreciation, debt paydown, tax benefits, etc).