All Forum Posts by: Bryan Hartlen

@Jeremiah Stevenson, pass / fail criteria are handled locally by the specific housing authority.... and in some cases (like in Birmingham, AL) it varies by inspector.  

In Birmingham a non-functioning AC would cause the inspection to fail.  If you fail, you generally have a 7 - 14 day period (also HA specific) to correct before a re-inspection.

(assumed cash flow for each year for each investor + investor's profit at time of exit) /(amount investor invested) / #yrs = Average annual ROI

Let's say the investor's total investment over 5 yr is $25k.the annual return for an investor for Y1 - 5 was $2k (10k total). Projected share of exit in Y5 was another $5k. Then their average annualized ROI is (10 + 5)/25/5 = 12%.

Even with inexperienced investors we would typically show annualized ROI (which most will understand) and also IRR because it factors the time value of cash flows (which they may not completely understand but is a common metric).

@Erik Browning they’re all rackets. Everybody is selling something. 2 years ago the spreadsheet was free.They used it as a enticement to get people to consider buying into their education. Btw I have nothing to do with them, I have used their free spreadsheet and it was a useful tool  which is what the OP asked for  

We have several section 8 rentals and currently use two different property management companies.  First of all, I don't believe you'll ever be truly satisfied with a PM company but they are a necessary evil for out of state investors. 

As for eviction timelines in Birmingham:  the online timelines you are reading are the fastest possible given the various laws / rules required to evict.  We've been told by multiple PM companies that the actual timelines are much longer because of the sheriff dept short staffing.  It's taking weeks to months to get them to serve notice. 

We’ve sold 4 or 5 notes thru Paperstac. We’ve never sold partials. One was non-performing the rest were performing or re-performing. All sold within a month. We price our performing notes to provide 10 - 12% return to the buyer. 

Nothing but positive to say about the platform in general. Very smooth process.  Access to way more eyes on our notes than we would’ve been able to get ourselves.

@Aaron K. by all accounts they are still backed up. So far we haven’t had any of our 2023 re-inspections (not that we’re complaining). Our PM company now suggests where possible to find private payer tenants because of the delays in placement inspections. 

@Steve Priola, thx. This sounds like section 8 rentals or turning the property into a HUD contracted property?

@Steve Priola sorry that I can’t help with your question, but I’m wondering if you would mind sharing your description of workforce housing and how it’s business model differs from standard MF rentals?

It looks like you have an error in entering the insurance cost ($8). Otherwise, assuming that you verified the various expenses and market rents, it looks like you have all the bases covered.