All Forum Posts by: Frank M.

Do the math. If you refi $84K at 5%/30yrs, it's $456/mo plus tax & insurance ($300?) so this property might not have great cash flow, but a fast $30K for a flip.

It's not about tying up new money. If you pull all your cash out, you can keep buying and accumulating with this kind of deal. If I got the numbers right, however, the cash flow itself doesn't meet the ratios I see all over BP. But the flip aspect looks like something to jump on. And if you line up the right groups of workers, you can have multiple flips going on at once after the first few.

Fair enough. Forgive me if I sounded snarky. In general, the paperwork is a one time deal, with some attention each year. In our area, the Section 8 government people are a pleasure to deal with. When we get a referral from them, it's a prescreened tenant, with a guaranteed rent. Saves us the cost of the commission if we listed on MLS. When I show an apartment to someone who is on Sec 8 that other landlords turned away, they are happy to be treated with respect and dignity. I don't speak ill of anyone, I tell them the other landlords might not have the people who understand Sec 8 paperwork.

I'd ask the tenant for the case worker's info and call him/her. I bet they'd be happy to talk to you. Again, sorry for my original tone.

First, read, and read some more. This forum has people making money making different ways, decide what you'd like to do. Then start looking for the deal that's right for you. It might take a week, or a few months. I bought a 3 family and closed on it yesterday. If you wait for the perfect deal, you may have a long wait. Much of success is buying right. I offered well below asking, and said cash offer. That made the deal happen. I want to keep it and rent it out, but the price now lends itself to a successful flip if I'd like.

I'm only here a couple weeks now, but I'll tell you, just keep asking questions. It's human nature to want to share ones expertise, and mentor others. You won't just get an answer, but probably 4-6 for every question. The more specific the question, the better people will help you.

In effect, you're not asking about our Sec 8 experience, you're asking how to not renew a lease.

Since you're not really asking about experience, I wont tell you that my company's sec 8 tenants are typically people who work hard but aren't making it. They are trying to get their kids educated and not repeat the same life they had. The government guarantees a portion of the rent, and the tenant picks up the rest, so a gal whose husband bailed on her and can only work mom's hours (when the kids are in school) can still afford to pay for her portion of the rent. Not telling you this.

Just call the agency paying the Sec 8 rent and tell them you have other plans and wont renew the lease. Let us know how that goes. Legally, a landlord can run a credit and income check. This would exclude the tenant from qualifying on his/her own.

Our business model isn't built on section 8, but it certainly fits right in. The government check comes on time, and cashes as fast as anything.

Much thanks, now I know a bit better what to look for and at least some range.

As the owner of many Single Family Homes, I'd imagine you've never had the need/ urge to do this. I'll use your answer as a high end estimate. Also guessing you were off by 3 zeros or so.

I just heard last podcast, as was intrigued at the splitting of the water to 3 inside meters.

My project (3 family) is heated with baseboard hot water. 3 zones but one main heating unit. I was considering renting with heat as part of rent, and getting more rent but running the risk of tenants just keeping windows open in the winter.

Question - any wild estimate on replacing one system with three separate units and having gas company charge individual tenants? (The larger question - Is there a guide to the cost for individual items to help estimate a project?)

You are most welcome. I've only been on BP two weeks now, but it's clear to me - facts will be corrected if I made a mistake, or if state by state has differences. And when asking for an opinion, you'll get a great mix of views from people with difference experiences and backgrounds.

My humble opinion to you - get your first purchase behind you and decide if the path you are on is right for you. I got my license for my job, then decided to make my first purchase. Do I want to buy XX properties? I told my wife, I need to get through the rehab, fill with tenants, then see how first 6 months goes.

In reading BP (like the book I can't put down) I've read members who said they are so busy with their rentals, they consider the license and being an agent something to delegate out. Others, as you suggest, want to go onto to MLS, and are bringing enough business to the broker, he keeps them on, and they get some fraction of the commision on the sale.

I took my state's required class, 40 hours. This qualified me to sit for the exam. I passed and was given a real estate salesperson license before I left the building. This gave me what I needed to work under a broker. The broker has a minimum 3 years experience, more class time, and sat through another exam. A broker can have multiple licensed salespeople under him. A broker can work for a company or start his own company (as if it's that simple.)

In my case, we are a single office, and we may open in other cities, in which case it would help if I take the broker route as well. There are a number of things the salesperson can't do, for example, commissions go through the broker. If I am sued for any reason, the broker gets pulled into it.

Others can add to this, I think I hit the highlights.

(Every state has different class requirements, some are as high as 160) There are those who find the exam difficult, and others who simply test well, knowing how to study and take an exam for maximum chance of success.

Last - with the number of active members, you never need to apologize. It's human nature to want to help like-minded people. Spend a minute searching (search box above) and if the answer isn't clearly there, ask. This was a great question. I didn't know the difference a few months ago either. Keep us posted on your progress. Curious how many hours your state class time is.

As an eager buyer, you might just befriend an agent who will help you find a property you are looking for. They are not going to give you their MLS access, but if you are serious and tell them your criteria, they want your business, and some agents starting out will make time for you.

If you get your license, you still need a broker. Some will want you to work full time or not at all. Some might charge a 'desk' fee. Others might take you on knowing your primary goal is to invest for yourself. Since the seller pays the broker commission, your broker stands to make money on your purchases. Whether you find one willing to take you on given the situation is another story. A seasoned broker might comment on what I missed. I am green, and not a broker, just agent.