All Forum Posts by: Canesha Edwards

@Adam Lowe

The easiest way to get started in multi family would be to house hack, assuming you currently don’t have a primary residence.

You can purchase up to a 4-unit with a FHA loan. Put down 3.5-5% live in one unit and rent out the other. After a year of living in the property, you can move out and rent the remaining unit. Obviously, this is the simplified version but you get the gist.

Feel free to reach out if you have any questions.

Best,

Canesha

Section 8 is a highly discussed topic in the real estate industry. Most landlords are on one side or the other.

Many landlords will not rent to Section 8 tenants under the premise of them being “bad” tenants. “ Section 8 tenants will destroy your property” is often the warning given to investors considering the program.

“It’s guaranteed money and you’re providing affordable housing for people in need” is often the response of landlords that accept section 8.

My opinion is, market rate tenants are just as capable of destroying properties and there are some amazing Section 8 tenants. I also like the guaranteed money from the government.

So, here’s my question. Are you a landlord that rents to Section 8 tenants? Why or why not? What has been your experience? How did your rentals fair during the pandemic ? What advice would you give a new investor considering accepting Section 8?

Let’s talk about it.

Canesha

Here’s my 2 cents. Take it for what it’s worth.

It’s 2022, yes, we’re still talking about race and we forever will. Why do people think racism will magically go away? Jim Crow and segregation wasn’t that long ago. People who lived during that era have kids, grandkids, who they passed their beliefs on to. Racism will become more hidden as the years pass but it’s never going away.

Secondly, What’s to stop the host from canceling the reservation once the name is revealed? If Airbnb has/finds evidence of discrimination, and if their company truly does not tolerate such a thing, kick the host off the platform. Simple. Proceed to do the same with all offenders. If this is not the outcome , then it’s all a dog & pony show to appease the necessary customer base.

Canesha

@Omar Arenas

If I were you, I would go for seller financing. It sounds like this property needs some work and the owner is old. If he sold the property to you using seller financing, he still receives monthly income without the hassle of being a landlord.

If that doesn't work, can you qualify for a FHA loan? That would be my next step if I could seller finance the deal.

Best,

Canesha

@Louis Porter Jr.

I have similar goals of scaling into larger multi family in the future. Let’s definitely keep in touch.

Canesha

@Tuva Jorfald

Seller financing can be a great way to get an amazing deal. Current landlords might be more open to seller financing than someone just looking to sell a property.

Seller financing appeals to the experienced landlord because they are used to getting monthly income. Seller financing allows them to still receive monthly income without the hassle of dealing with tenants. I would make this case when approaching people.

Terms on seller financing can literally be whatever you and the seller agree too. Don’t make the process too complicated.

Best,

Canesha

@Louis Porter Jr.

I have a friend who has a similar strategy. He is heavily focused on investing in smaller towns and he is doing very well. The value of a lot of his houses are under $100k, but he’s getting $1000+ a month on all houses. He rents to section 8, seniors, and veterans.

His returns are crazy.

Once you get a good team in place you’re golden. People shy away from small towns, but some of these places can be gold mines.

Best of luck to you.

Canesha

@Brittney Peabody

Don’t know if I could spend it all in a weekend, but here is what I would do.

1. I’m buying land. I would spend $100k here. I need at least 3-5 acres outside of a major city.

2. I’m using the remaining $100k to qualify for a construction loan ( $80k) and the other $20k will be spent on construction plans, permitting, surveys.

Then I will proceed to build an affordable home community. The homes will be around 1000-1200 sqft and the community will have amenities such as a community garden, walking trail, and random fire pits throughout so people can enjoy being outside.

If I absolutely had to spend it in a weekend…. I’m buying stock in my favorite REITS ( IIPR and Digital Realty Trust)

Canesha

@David Lilley

Your underwriting metrics are fine and well thought out, but with the way inflation is rising- you have to account for the prices of everything else rising as well. So, while your median income is probably 2.5x or 3x your rent price,now all other living expenses are increasing at the same. Food is more expensive, gas is more expensive, living altogether, more expense. Therefore, your 2.5x income is dwindling and could be more around around 1x. Just my view.

Either way, I’m not here to poke holes in your investment strategy. I’m just not one to invest in a value- add deal at lower yields.

Canesha

@Allen Williams

I was never alluding to an ‘08 like crash, as you stated the factors this time around are different.

As you mentioned there is a lack of “affordable”housing. Which the homes being built today aren’t affordable. Starter home prices being at $250k here in Atlanta, well now it’s more around $300k.

The point of my post was to bring light to some of the syndicated deals that I’ve been seeing and the risk that’s there. I don’t care what the projected rent increase is, and all the underwriting metrics. I’m not the investor to invest in these low cap rate value add deals. People do and make money, I’m just not one of those peoples.