Owners were charged an assessment (several thousand dollars) in 2023 to put into reserves, as per the new rules after the Surfside collapse.

If your interest payment is $8,125Your stocks have to make a dividiend of about $11,000 of which you would prolly pay 15% to 25% in federal / state taxes / NIIT.Assuming you will make a 10%-11% return is not guaranteed.You will also feel good about having a paid off property(relief).Furthermore, your credit score may go up with a paid off property.Best of luck!

@Nicholas Aiola can I fund an operating/reserve account with a Heloc and write off the interest?

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable).

Do you raise for your reserves and capex, or do you hope your cash flow will cover it? 

Yeah, pretty minor so just keep it in reserve when its time to renew.

In addition to taking 6-9 months to close, they are also subject to (i) annual audits, (ii) annual REAC property inspections, (iii) recurring annual MIP payments on top of your interest rate, (iv) large initial deposits to the replacement reserve, (v) commercial space limitations to 15-20% EGI / 25% NRA, and (vi) less forgiving underwriting with 7.00% minimum vacancy rates when determining our underwritten NOI.

This doesnt' even get into reserves, vacancy, maint, PM services, etc.

Hi everyone - So with the declaration here by the administration regarding Federal funding how does this impact section 8 landlords.

The SEC asked the federal court to rule on its requests today, February 6, 2025.Our law firm is investigating and would like to speak with any individuals willing to provide information about certain aspects of Broadstreet’s operations.