All Forum Posts by: Douglas Gratz

@Joe Villeneuve using dollars , using cash absolutely increases my

Cash flow in terms of dollars .

In my market taxes are high so I usually buy only duplex and up, however have a few SFH in the area will diverse what I have available. Some people want to rent homes not apartments.

That’s why I asked this question . Should I pay straight cash so it cash flows or just forget about it ...

Hello friends , hope all is well during these wild times.

I’ll try to keep it short . When I started I refinance all 8 of my properties . I would pay cash then 6 months later refi .

Now, however I have cash flow and money to buy outright .

The biggest thing with a mortgage is it takes a lot of the cash flow away . In my market I buy duplex's bc SFH don't work (mortgaged) bc taxes are high.

Should I start buying in cash to make these SFH cash flow ? In my market I want to get some singles instead of all apartment bc I have gotten a lot of ask for houses to rent.

I have been giving the opportunity to buy something and I can’t make my mind up. Put half down to lower mortgage payment or just pay 60k cash and take the 12% return?

Fellow landlords what do you prefer to do?

@Marc Winter my deductible of 5k might not make it worth it to use insurance thats why. I ask about hud. LESSON LEARNED ABOUT wanting a slightly cheaper policy by taking higher deductible but then again who coulda known 

Good afternoon,

Long story short, tenant knocked sink piping off under sink and it leaked onto FUSE BOX.  CAUSE A LOT of DAMAGE.  HOTEL alone while waiting for condemned inspection because of corona will cost A lot.

Insurance deductible 5k, might not make sense for claim.

Will HUD PAY?

@Kevin Sabatino it is just another program. Ran by the Salvation Army instead of HUD. I stumbled into it, but works just about the same with a bonus of less inspections.

I LOVE SECTION 8 AND Salvation Army! 90% of all my rent throughout my 12 units is payed directly into my bank account by the government.  I can't complain.  I am finding out that a my business model surrounding section 8 is just about economic disaster proof and there is no better comfort than that.

Screen your tenants well and I think its the best route to take!

And of course all is dependent on your market.  If you chose a bad section 8 market thats on you , the researcher.  

I have and am so happy to find out my portfolio of rental properties is just about recession proof.  Section 8 has been the best decision I could have made!  Those who pay portions or all of their rent I have been asking for an easy $5 dollars every other day.  This intern makes them want to pay if they have money, and turns out people are sending 10-20 a day sooo more bees with honey

@Jacob Sampson I don't know about crappy, but definitely class C.  I rent out section 8 and Salvation Army.  Area is stuck in time, people who work in the good spots need a place to live around it.  I asked this question because I just wanted to make sure I am not over doing it by taking the full 75% of 238. Wanted to see if the reward is worth the risk. meaning lets say I have to drop rents 300 per door, this is worst case, then I no longer cashflow , but if itake less and thus cashflow close to 1000 then I can lower rent a lot and still be good and I like the have the security . at the same time paying 0 for the house and actually profiting 60k , sounds great and goes along way

@Jacob Sampson Before expenses its 2600. two units 2 bed at 1250 and 3 at 1350  and my fault not 800-1100 per unit, per duplex Is what I meant, sorry

@Jacob sampson

@Jacob Sampson. Yeah this will be my 7th refi with them, so we are in good standings . Thanks for the info

I cash flow approx 800-1100 per unit which seems like amazingly good from reading post here that are only getting 100-300...whats Amazingly good can change from person to person but thats what drove this question. I can take 75% ARV loan or I can take 50% of it and as result have cash flow either 800ish or 1200 respectively (tax and insure included )