All Forum Posts by: Chris McDonald
Chris McDonald has started 4 posts and replied 6 times.
Post: Rental Property in "War-Zones"

- Media, PA
- Posts 6
- Votes 1
Im new to real estate and I'm sure like everyone, I heard about people Section 8ing their property's in these "war zones". I've seen posts about semi-war zones but nothing about full on war zones.
Now when I say war zone I'm talking about very ghetto areas (drugs, guns, gangs, the whole 9 yards). I was looking at some of these properties for around $25k-$35k. The properties aren't in that rough shape either only seem to need some paint and carpet for the most part that's it.
I was looking at the going rate for some of the section 8 properties in the area and they're getting $900-$1,200 per month!! Now of course your going to get some rough tenants in there that aren't going to take good care of it. But it's only a $30k rental property. Is the headache worth it? Cause you're obviously getting your rent payment every month (assuming their Section 8 covers have 100% of the rent). Is there something I'm missing here that keeps investors away? Also I'm aware there isn't going to be appreciation on these properties, I'm asking from a cash flowing stand point.
I want to have a large amount of rentals as soon as I can afford it. I'm 26 y/o so I do have sometime.
On my rental my revenue is $1,200/month . Then roughly my expenses (mortgage, insurance, water) are $725. So I'm profiting almost $500/month now.
Now like I said I bought this property recently (2 months ago). Is there a certain length of time I must wait before I can go out and refinance, (generally speaking) have you ever heard of someone doing it that quickly?
Or would I be okay just going and applying for another mortgage for the 2nd rental? Have you ever heard of someone buying another rental that quickly?
I recently purchased my first rental property (Duplex) for $65,000. I had to put 25% down for a 30 year mortgage so I still owe just under $49,000. I do have an investment mortgage on this property because I do not live there. Both units are currently rented out. The property was appraised and $75,000 when I had it appraised recently. So right off the bat I have $10,000 equity.
Now I'm able to find plenty of information about going about buying your first property but not as much info about the next step. I have a good amount of money saved again and want to see what my best option is.
Now my question is since I owe $49,000 on my rental property am I better off paying that property off completely or do I just simply move onto purchasing my next property.