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All Forum Posts by: Dominic Mazzarella

Dominic Mazzarella has started 7 posts and replied 246 times.

Post: Fix and Flip Questions

Dominic MazzarellaPosted
  • Investor
  • Hendersonville, NC
  • Posts 258
  • Votes 166
Quote from @Donyea Jenkins:

I am getting ready to get into flipping. My questions are in regards to ARV.

1) Would it be useful to consult an appraiser about what repairs should be done to get the max value BEFORE buying the property. More information, my niche is total rehab. My properties will be almost blank canvases. This would seem to make sense....would this be something to consider/do? 

2) Does it not matter if we are basically replacing everything(roof, electrical, plumbing, flooring...etc)? 

Appreciate any feedback


Talking to an appraiser upfront can be really helpful, especially if you're doing full gut rehabs. They won't give you a perfect ARV, but they can usually give you a ballpark based on comps and help you understand what kinds of finishes and upgrades push value in that area. Just make sure they're familiar with investment properties and not just cookie-cutter appraisals.

As for replacing everything, it can definitely justify a higher value, but it still comes down to comps. If the comps are all 3-bed, 2-bath with quartz counters and LVP, then even a brand new roof and plumbing won't push your ARV much higher unless your finishes and layout are on par or better. So it's less about how much you put in and more about how it compares to what's already selling.



Post: Newbie question- Buyer's Data

Dominic MazzarellaPosted
  • Investor
  • Hendersonville, NC
  • Posts 258
  • Votes 166
Quote from @Edwin Varela:

Where can I find consumer data about people (Americans) who are interested in buying properties in the Caribbean?

I’ve never specifically looked for this data but 

finding accurate buyer data for Americans interested in Caribbean properties could be tricky. You might want to look into platforms like Google Trends or Meta Ads (Facebook/Instagram), which can show you interest levels by region. Also, some real estate data providers like PropStream or even niche international brokers might track that kind of info. You could also try short surveys via travel or expat forums to get firsthand insight.


If I were you, I’d probably try Google Trends first. 



Post: House Hacking, FHA, Lots of Student Debt, 2bed-2bath v Multi-Family

Dominic MazzarellaPosted
  • Investor
  • Hendersonville, NC
  • Posts 258
  • Votes 166
Quote from @Kaili lynn Mcdonald:

Hey all. This is my first post, and I'm still trying to figure out a plan for getting into real estate. Please be kind!

- Short-term goal: Buy a property and house hack to lower cost of living and help direct funds towards paying off student loans. I'll need somewhere to live when my lease is up in 2 months. 

- Long-Term Goal: Refinance/take out a HELOC on the first property and use it to purchase a second property. Rent out the first property. Repeat.

I have a real estate agent and a lender I am working with for my first property purchase. I have had my heart set on purchasing multi-family properties to house hack, but I have minimal funds for a down payment and need to use an FHA. I also have student debt I would like to pay off by either lowering my cost of living by house hacking and eventually putting cash flow towards my debt.

However, I have already gotten pre-qualified. It seems what I can afford is something like a 2 bed condo/townhouse, but not a multi-family property in the location that I am looking. I'm trying to decide if I should continue pursuing a to house hack a 2 bed 2 bath property (with a mortgage I could manage on my own if need be) or start a part-time job (in addition to my 9-5) to save money for a larger down payment and pay off student debt. 

Could anybody provide any insight to consider when purchasing a townhouse/condo as a future rental property? Thanks in advance! 

Based on what you shared, I think the 2BR/2BA condo might be your most realistic and practical first step especially with limited down payment funds and FHA as your best option. It may not be a full blown house hack, but it could still cut your housing expenses and get you in the game. Once you're in and have equity growth or pay down some of your student debt, you can reposition into a multi family later. If it cash flows even modestly, you're still heading in the right direction.


Quote from @Isaac Isaia:

I am an investor who owns single-family and multi-family properties in Springfield, MO. I want to reach out to small multi-family property owners to see if they would sell their property. I know with MF properties there are often multiple owners or entities that own the properties. Any recommendations on how to best communicate with MF property owners in a way to open the line of communication to see if we can come to a deal on their property? 


Direct mail still works great for small multifamily owners, especially if it's a personal letter that doesn't look like mass marketing. You can also try skip tracing and giving them a call or even texting. If it's owned by an LLC, look up the mailing address and managing member through the Secretary of State site. Persistence and a genuine tone usually go further than a flashy pitch.



Post: Unsolicited offers to buy property

Dominic MazzarellaPosted
  • Investor
  • Hendersonville, NC
  • Posts 258
  • Votes 166
Quote from @George Odell:

I have been contacted multiple times by out of state firms, offering to buy land that I own at seemingly “above market” prices.

They ask that I sign a so-called purchase agreement… A one page document… Which appears to tie up the land for at least 90 days. 

My attorney has advised me to stand clear so my question here is, is this a scam and exactly how does it work?

Thank you for your help.


Yeah, this happens a lot. It’s usually not a scam in the legal sense, but most of the time the buyer isn’t planning to close. They’re trying to lock up your land so they can flip the contract to someone else. If they don’t find a buyer, they just walk. Meanwhile, your property is tied up and off the market. Unless they’re putting up real earnest money and can prove they’re serious, your attorney’s advice is spot on.

Quote from @Damani Tilton:

Hey everyone; I’m a newer landlord and considering renting to a Section 8 tenant for the first time. I’d love to get some insight from more experienced investors.

Here’s the situation:

• I’m asking $1,400/month for rent

• The housing authority will pay $850

• The tenant’s portion would be $550

• The tenant’s reported income is only $1,500/month

I have some concerns about their ability to consistently cover their portion. If they fall behind, will it be particularly difficult to evict them given the Section 8 protections/process?

Also, are there any other considerations or red flags I should be aware of when working with Section 8 tenants? Any general advice on screening, dealing with housing authorities, or protecting myself contractually would be appreciated.

Thanks in advance!


That tenant portion does seem a bit high relative to their income. $550 out of $1,500 is over a third of what they make, and that’s before accounting for food, utilities, and everything else. I’d definitely be cautious there. Even with Section 8 covering the bulk, if they fall behind on their part it can still become a headache for you.

Eviction with Section 8 isn’t impossible, but it does take longer and usually requires more documentation. I’d make sure your lease is tight, and that everything is in writing, especially around what happens if their portion is late.

Also, double-check how utilities are handled. If the tenant pays them separately, that’s another factor that can push their total housing costs too high and impact payment reliability. I’ve had good Section 8 tenants, but that income ratio would give me pause without some sort of supplemental income or strong payment history.

Post: Raising Cash for Down Payments

Dominic MazzarellaPosted
  • Investor
  • Hendersonville, NC
  • Posts 258
  • Votes 166
Quote from @Arnold Caceres:

Hello BP,

I am in search for a rental property and have 2 bank pre-approval letters for the funding. However, I'm afraid I'll fall short in cash to close and for the 15-20% down payment the bank requires.

What are some strategies you use to raise cash for down payments without having to dilute my ownership? 
thanks 


You've got options here, especially if you're trying to avoid giving up equity. If you've got strong credit and income, a personal loan or HELOC (if you own other real estate) might be the simplest solution. Also drawing from a retirement account like a 401k, or using credit card balance transfers strategically just to bridge the gap, though that takes discipline.

If you’ve got a friend or family member who believes in what you’re doing, a short-term private loan with interest could work too, without diluting ownership. Just make sure it’s all documented to keep it clean.

Some of the comments in this post are interesting. I wouldn’t lose heart just because folks on here tell you you need to save more or get a better job. What you might need is just a bit of creativity. 

Post: Trump Policies Will Put Downward Pressure on Real Estate Rents/Prices

Dominic MazzarellaPosted
  • Investor
  • Hendersonville, NC
  • Posts 258
  • Votes 166
Quote from @Scott Trench:

I know that anytime Trump's name is mentioned, someone gets triggered. Either the post is too anti-Trump, or too Pro-Trump. 

Let me be clear - I do not condemn Trump's policies or necessarily know whether they will be positive in the long-term future or not for real estate investors. Further, "Downward Pressure" may be "bad" for investors, but it may also be "good" for renters - his policies, if I am correct, may negatively impact housing prices and rents, to the detriment of investors and to the benefit of renters, in the near-term. 

"Positive" or "Negative" impacts are relative. I write from the standpoint of a real estate investor, and I perceive Trump's actions to be threatening to near-term real estate investment returns, on the whole. I believe this because I think that on the whole, his first two weeks of actions are likely to: 

- Have zero no impact on near-term supply (deliveries for single family and multifamily homes 2025 are a result of actions put into motion several years ago)

- Put upward pressure on interest rates: Trump's demand that the Fed lower rates will have absolutely no effect, other than providing a cheap source of easy social media clicks and engagement for real estate pundits. However, the implementation of tariffs, or just the threat of tariffsis likely to influence rates, by impacting inflation numbers, and this influence may come quickly if prices for many common goods and services and raw materials rise in anticipation of tariffs, or in response to their implementation. 

- Put downward pressure on demand: I personally believe it is unlikely that Trump actually deports millions of illegal immigrants who have settled in the United States. This, to me, seems impractical, and a PR nightmare. It's possible he carries it out, but I believe it unlikely. I believe it is far more likely, however, that the effect of his stance and actions materially lessens the flow of new illegal immigrants. This will slow new demand for rentals. In the event that any meaningful percentage of 10-15 million (estimates seem to vary widely depending on which news source you prefer) current illegal immigrants are deported, real estate investors will have a big problem as vacancies soar. It is likely that a huge percentage of that 10M-15M illegal immigrant population are renters. Regardless of whether investors currently rent to illegal immigrants, their competition in the market likely does.

- Put Upward pressure on real estate operating costs: Increased costs for raw materials and supplies, and the likely increased costs for labor involved in many real estate related CapEx and maintenance projects signal the risk of increase in costs for real estate operators.

If there is no impact on near-term supply, a modest slowing of inbound (illegal) migration, more reason to believe that the cost of many goods and services will increase, and real reason to believe that inflation triggered by something other than an increase in the money supply (namely the cost of specific goods and services that are NOT housing going up, which comprise the CPI) will force the Fed to raise rates, this, on the whole, is not good for real estate investment returns. 

No, I do not think that there will be a housing crash or a massive drop, nationwide, in rents and prices. Yes, there will be offsets (do Tariffs and slowing illegal immigration increase wages for some workers - likely yes). But, I believe that the actions of the first two weeks should give investors, on the whole, reason to incrementally revise down their expectations for growth in prices or rent growth in 2025. There may also be incrementally better probability of deals, as investors who are dependent on rates coming down may find their hopes disappointed. 

I think 2025 will be, by and large a buyer's market, and that the new administration's policies only, and again incrementally, make me more confident that this will be the case.

What do other investors think? Do you agree or disagree? 


I agree with most of your points. Also if this tariff business leads to a recession and folks start losing their jobs en masse, that will almost certainly bring downward pressure on prices. 

Post: Hiring Fears: Overcoming the 3 Fears of Hiring

Dominic MazzarellaPosted
  • Investor
  • Hendersonville, NC
  • Posts 258
  • Votes 166
Quote from @Ashley Wilson:

Two years after I knew I needed to hire someone, I actually did. Two years of bandwidth constraints. Two years of stress. Two years of missed opportunities. Two years I will not get back.

Why did it take me so long?

Long story short I was scared. I was paralyzed in the fear that a hiring mistake could be a life-altering event. The reality was, this fear was irrational. It was irrational, not because I was infallible from hiring the wrong person, but because it wouldn’t destroy my life.

As I faced my fear head-on, I realized there are three fears surrounding hiring: 1) fear of affordability, 2) fear of hiring the wrong position, and 3) fear of hiring the wrong person.

Affordability

In my experience, this is the most common fear. I was able to overcome this fear by the following self-talk:

“Why are you afraid to hire someone?”

I might hire the wrong person.

“Do you think you will be able to recognize that you hired the wrong person?”

Yes, I do.

“In a year?”

Sooner than that.

“In a month?”

Yes, if not within two weeks.

“So, in the worst case scenario where you hire the wrong person, could you afford paying their salary for two weeks?”

Yes.

Once I had this epiphany I was more confident than ever to make a move. One point to clarify, I wasn’t preparing to fail, I was working through a fear. I obviously had more work to do to identify the right hire, but I was now approaching the other aspects with confidence instead of fear when it came to making a decision on the correct hire.

Wrong Position

Almost every business, regardless of whether they are new or established, would agree that another set of hands could help their business. The question is what do those hands do. As newer businesses tend to be more fragile hiring for the right position even more important.

There are two schools of thought when it comes to hiring (start with the top, or start with the bottom). Hiring someone at the top provides high value impact at a high price. Hiring from the bottom removes administrative tasks to free up your time but typically doesn’t yield high value impact. Different businesses require different approaches, which is why these two strategies are equally implemented.

Surprisingly Ai can also be a consideration when it comes to a hiring solution. In other words, instead of thinking of hiring a person, you now have the option to subscribe to an existing solution, or hire a developer to build you an application that can replace a hire.

Regardless of whether you hire from the bottom, top or utilize Ai, analyzing cost-benefit is a perfect place to start to identify the best strategy to deploy for your personal situation. Pro Tip: Benefits aren’t limited to bottomline revenue, but also opportunities created (which are typically harder to quantify).

Wrong Person

Finding the right person who fits the cultural you are building is equally as important as hiring for the right position. I have personally witnessed the impacts a wrong person hire can do to an organization. A few examples include negatively shifting employees mindsets and work ethic, being a drain on management, and a negative customer experience.

To increase my chances of hiring the right person, I prioritize one’s personality over their experience. In other words, I look at personality scores first. If their natural disposition does not fit the role’s personality disposition then I don’t move forward with the candidate. For example, if I am looking to hire someone who manages data they must test very high when it comes to detail oriented.

For so many years I have heard people say, “There are so many bad contractors”, “Virtual Assistants are horrible”, or “There are so many lazy workers”, but the reality is there are so many people who don’t know how to hire. Focusing on overcoming the fear of affordability, wrong position and wrong person gives you the power to find the right hire and set your business up for success!


Great post Ashley. It takes guts to post something candidly like this in public and the advice is solid. 

Post: Cash vs Loan buyer- which do you prefer?

Dominic MazzarellaPosted
  • Investor
  • Hendersonville, NC
  • Posts 258
  • Votes 166
Quote from @Renee I.:

Hello,
For those who have sold real estate, do you prefer cash buyers? Or if a loan offer for your property is x amount higher would you take that instead? How much weight do you put on a cash offer?  I am considering all the + and - to investing using cash or investing using loans… Thanks! Renee

Personally, I like cash buyers for the speed and certainty, but the price has to make sense. A lower offer just because it’s cash doesn’t always cut it. If a financed buyer comes in stronger and they’re well-qualified, I’m absolutely open to that.

Cash is great for avoiding delays and headaches, especially if you’re on a timeline or the deal’s tight. But most of us are in this to maximize returns, so I’d weigh the spread between offers more than the funding source alone. Strong financing and a solid track record can still win.


Mom and pops usually do the all cash deals but investors usually finance, and for good reason. You can only make your own money go so far.