All Forum Posts by: Jak Dadi

Thanks, Curtis and Tim.

I have posted on craigslist too, so time will tell on the level of interest that generates.

Have any of you worked with"Building Opportunities for Self Sufficiency"? I rented a unit to someone that came through the agency and the lady defaulted in the first month of tenancy..and now i am dealing with having to evict her. The agency has offered to rent other units from me and become the payee, but would that be a good idea? I would prefer Section 8 tenants after this experience...but if anyone else has experience dealing directly with non profit agencies, please share your expeeriences.

Thank you

Has anyone used the paid service at www.GoSection8.com to find Section 8 tenants?

How do you raise rent for a Section 8 tenant?

We rented one of our units to a lady middle of last month. Everything looked good on her credit report. But she has already defaulted on her rent payment at the second month. She first made up a story that the check was mailed...then 8 days later, when been confronted with her lie, she asked the property manager to come over and collect the rent including the late fees. Guess what! she did not return back o her apartment....does not return her calls...the property manager is putting up the 3 days notice...how long would the entire process take to get her out of the unit in east bay? what am i looking at in terms of approximate costs?

i must confess i have not compared this with other products or services as yet....and no..i do not work for guidant or any other financial services organisation...but the link below speaks of the 401k small business financing program

https://www.guidantfinancial.com/products/small-business-financing/default4.aspx

apparently there are 2 ways to treat your IRA funds- one is to self direct the IRA and i was advised against it because of the higher number of restrictions and the other is the roll off the funds into a C Corp within the IRA. the caveat is that the directors have to contribute to a 401K, can also take compensation and pretty much engage in any legal business....no early distribution or penalties or tax implications if u do that....still stays within the IRA domain....here is the correspondence from our guidant advisor

real estate can be acquired with the same 401k structure we discussed before and allow you to purchase rental properties; buy, rehab and resell foreclosed homes; or even a real estate business like a hotel or a campground. Almost any business will work, it can even be a combination of a real estate business and another type of business. The fee will be the same regardless of how may accounts are rolled or how many businesses you decide to operate. Typically everything can be done in a 3-4 week timeline from start to finish.

Thank you Harry :-) I am afraid i am going to be glued to the site for the next few days as I read up everything i possibly can. the info here is amazing!

and i agree with all...this is simply a SUPER site!!!!!

Thanks motiv....i have been asking myself repeatedly if i am going too fast.....if i am making the right choices...i am comfy with my analysis but i want to make sure i keep my eyes and some resources for other opportunities..
regarding the ira.....we are rolling that over to a C-Corp and then investing in real estate..this way i do not have to take a distribution....i am trying to understand the double taxation effect of a C Corp...i read on this site that an LLC is a better option...not sure if tht option is available for ira funds....if anyone knows pls advise....

bill....all these are conventional loans...so need to put down 25%..for e.g.i bought a vacant studio plex for 133k, put down 25% and spent another 2.5k on appliances and repairs....for a total outlay of 40k incl closing costs, rented each of the 4 units for 600(rem. these are studios), used 28% expense ratio, and i get annual cash flow (before tax) of 14k.

i want to get another 5 properties next year...and hence want be a bit wiser before i buy the next batch over a year...

what shd my next move be? the same as above or something else?

It really depends on where in Bay Area you are investing in. I started looking at San Jose/Sunnyvale/Redwood city...and ended up buying 5 fourplexes in East Bay..the cap rates range from 9% to 18% and GRM is 4-5. My focus is on cash flow and I am assuming that when the market does recover, East Bay would appreciate slightly more than South Bay, since the decline in prices was worse in EB. And of course, I would recommend you hire a property manager and also be open to having Section 8 tenants. The minimum cash flow return I look for is 20-25% on these properties.

Cherryl, have you considered multi-units? like a triplex or fourplex...I would go for those rather than SFH.Your risk would be spread if you have a vacant unit, and yet be able to break even potentially....but if the SFH is vacant, you are on the hook for 100% of the expenses, including mortgage.