Has anybody dealt with HASA in NYC
Hello BP,
I have a few questions about the HASA program in NYC. My father in law has been investing in multifamily homes in the Bronx, NY and finds his tenant's through HASA. I spoke with him for hours this past weekend, and he was explaining that the city or government pays him $1,500 per bedroom (not apartment). So in one of his multi family homes he has 11 bedrooms, that HASA fills up for him and pays him $1,500 per bedroom each month ($16,500).
This sounds like an amazing program, but my questions is this true. I am asking if anyone else heard of or dealt with HASA before and can validate that they pay $1,500 per bedroom. Or is this false and could be an exaggeration.
I helped him put together a very quick word document to map out the numbers (nothing professional) just something to get organized and layout all the numbers. I will paste it below, please look it over and tell me if this seems to good to be true, or is it possible. I am definitely a little skeptical so please if you have any advice or experience with this please share your input.
Property Details:
- Fully Renovated 3 Family Home For Sale, 5 Over 4 Over 2 Bedroom, 1 Over 1 Over 1 Bathrooms, All New Kitchen With New Cabinets, Granite Counter Tops & All New Stainless Steel Appliances (Fridge, Stove, Dishwasher, Microwave). Hardwood Floors Throughout, Great Live In and/or Investment Property
- 11 Bedrooms
- 3 full Bathrooms
Finances:
$599,000 (purchase price of House)
20% (Down payment to purchase house)
$12,000 (Closing cost)
$599,000 X 20%= $119,900 (Total down payment)
$119,000 + $12,000= $131,900 (Total out of pocket including closing cost)
Monthly Income:
11 Bedrooms rented for $1,500 per bedroom
11 X $1,500= $16,500 (Gross monthly income)
11 X $700** (per bedroom property management and utilities) = $7,700 (total amount to manage the apartment building and place tenants in each bedroom, with utilities per month)
$16,500 - $7,700= $8,800 (scheduled rental income after property management)
Monthly Expenses:
$2,200 (monthly mortgage payment, 3.48% 30 year fixed)
$2,000 (contingencies monthly expenses)
$450 (property taxes)
$150 (homeowners insurance)
$4,800 (Total monthly expenses)
Monthly cash flow:
$8,800 (scheduled rental income after property management)
$4,800 (Total monthly expenses)
$4,000 (Scheduled net rental income) or $48,000 (Annual net cash flow) or 36.5% ROI
** $700 out of the $1,500 per bedroom will be paid to a property management company that will assign the tenants into the apartment, but will handle all the maintenance and day to day activities. This cost will also cover the Gas and electric bill on a monthly basis, so the $800 that is left over from each bedroom is after property management and utilities**