All Forum Posts by: Jacoby Atako

@Mary Mitchell

Yeah I've been reading about that. It looks like this may take a while, but would probably be worth the time investment

@Anish Tolia

Nearly. But there same town homes are selling from$235-$245k. So it's about$100k in equity. And she's 80.

@Michael Noto

Not yet. But I know it's $1100 at minimum based on other properties if looked at. I haven't even closed yet, this was just a thought.

@Joe Villeneuve

I appreciate the insight. Although it's one of the first deals, I'm actually pretty comfortable with the math on this. Negative cash flow was assuming a refinance which is not necessarily a plan unless I used up other capital.

Currently the expenses on the house are, HOA $62, insurance $25, taxes $83, water $20. There's no vacancy obviously, and she's still responsible for maintenance under $100.

All numbers verified. The HOA is responsible for all exterior including roof, so even cap ex is pretty limited. Home built in 1996. So even though the return is low, I get control of a house way under market that still nets enough cash flow to take care of additional issues. Opportunity cost is only lost if I don't have additional money to use, which I do.

@Joe Villeneuve

So I'm purchasing for $127k. Value is $230k. She currently has a reverse mortgage for $50k. The main part of that agreement is that she'll be able to rent indefinitely for $500 a month with 3% annual increases.

The normal rents on similar properties are between 1300 and 1400. I paid cash and will cash flow about $200 a month. She's 80 years old so I'd expect at most she'll be in the house 7-10 years at most before she'll need some sort of assisted living. I would either refinance all the money out and leave about $25k in an account specifically for the difference of cash flow negative for 10 years in order to buy more, or I'll use other money and just refi when I can raise rents (ie she passes away).

The section 8 idea came to me when I was reading an article and realized she would be considered extremely low income.

@Joe Villeneuve

To not a lease option, sorry if I wasn't very clear. I'm purchasing the property from her outright. I'm then renting the property to her as a regular rental. I am purchasing for about 40% the market value solely because I agreed to rent back to her for about 40% of normal rents.

She will basically be my tenant until she is no longer able to live on her own, or passed away. But I'm wondering if I can "manipulate" (for lack of a better word) the section 8 rules to help her get rent assistance while making my rental approved for a section 8 tenant. By help her, I just mean with the application process. She's really old

So I am in the process of purchasing a home at a big discount to an elderly lady. Part of the agreement I made with her was to lease the house back to her at an extremely reduced price from normal rents.

She's 80 years old and on social security so we worked out a deal that should work for both of us. Her social security is only $1k a month, but she will be about $75k from the purchase. My question is, can I help get her qualified for section 8, and also try to qualify the home as section 8 at the same time?

From what I'm understanding I can both get much higher rent and reduce her monthly rent at the same time. Is that even legal and/or doable?

@Terry Lao

How long have you had your 4 plex here in Las Vegas?  How long was the process to get the rentals section 8 approved?

@Dave E.

First off, what an amazing question that rarely, if ever, gets discussed. I'm beginning my journey too and found the same issues when my excitement for the best of me. I seem to be able to turn any conversation into real estate, even with friends (which has opened the doors to opportunities), but that certainly got me rolled eyes with my wife.

I knew talking advantage of deals would be an issue because she wasn't TOTALLY on board, and by the time I ran numbers passed her there would already be 3 offers on the house I liked.

The thing that helped was showing her some of the stuff I know she's actually interested in. She loves to remodel on a budget and save money. I had her watch #meetkevin videos on YouTube about remodeling and she was DEFINITELY interested. We also got our first house under contract that was off market and not only did I make the offer knowing I would help the seller, but my wife loves older people, so I sold my wife on how we'd be able to help this older lady. I get to double my sales experience lol

If you buy in the current market, is it pretty unlikely to see much cash flow?  Even putting 25% down, most are netting even or slightly negative in cash flow.  Is that about common?