All Forum Posts by: James Lucenti

Portfolio Highlights

• 100 Henry Street: 8 units / 24 beds
• 104 Henry Street: 2 units / 14 beds
• 108 Henry Street (The Dixie): 15 units / 44 beds (approved)
• Parking Lot: Additional development/tenant amenity potential
• 27,140 SF Mid-Rise Building with plans available for up to 68 multifamily units
• Flexible Commercial C4 zoning and Congregate Living designation — allows for student housing, multifamily apartments, or mixed-use development
• Much of the demolition work has already been completed, providing a strong head start for redevelopment
• Prime location with strong rental demand and attractive investment yield potential

This portfolio represents an exceptional development opportunity with the flexibility and positioning needed for a successful project in one of the region’s most dynamic rental markets. 

I would be happy to discuss this opportunity in greater detail and answer any questions you may have. Please feel free to contact me directly at your convenience.

• 6-Unit Multifamily | 4,176 SF | Built 1971
• USF Zoning – Residential charm w/ investment upside
• GRM: 5.79 | Cap Rate: 10.45% | DSCR: 1.76 – Strong financials
• Municipal Electric – Lower utility costs = higher NOI
• Recent Upgrades – New electrical, coin-op laundry (extra income)
• Well-Maintained – Spacious units, solid rental history

📍 Location Highlights
• Central Endicott – Walkable to shops, dining, parks, transit
• Near Highland Park, Cider Mill & Performing Arts Center
• Growth market w/ long-term appreciation potential

Turnkey opportunity with immediate cash flow and upside.
Click for full details: Property Website

With homelessness on the rise and affordable housing in short supply, Broome County is facing a critical housing crisis—one that presents both a moral calling and a strategic opportunity for real estate investors. By participating in the Section 8 Housing Choice Voucher Program, landlords can earn stable, guaranteed rental income while accessing renovation grants and tax incentives that boost long-term returns. More importantly, they can help meet a growing community need by providing safe, dignified homes to families, seniors, and individuals who are too often left behind.

1. Stable, Guaranteed Income

The federal Housing Choice Voucher Program (Section 8) ensures landlords receive reliable rent payments. Tenants pay ~30% of their income; the local Public Housing Authority (PHA) covers the balance directly—significantly reducing vacancy and default risk.

2. Benefits & Legal Protections

Section 8 is protected under the Fair Housing Act (42 U.S.C. § 3601–3619), prohibiting discrimination based on race, familial status, disability, or public assistance Wikipedia+10binghamtonha.org+10WNBF News Radio 1290 AM & 92.1 FM+10broomecountyny.gov. Additionally, HUD regulations ensure landlords must not deny tenants solely for using vouchers.

3. Low Renovation Risk + Inspection Safety Nets

Landlords must meet HUD's Housing Quality Standards (HQS): structurally sound units, working utilities, safety features (smoke detectors, secure locks), and cleanliness. PHAs conduct inspections and handle recertifications, easing oversight burdens.

🏗️ Preparing Your Property for Section 8

1. Pre-Inspection: Ensure no peeling paint, fix broken windows, check plumbing/electrical.

2. Comply with HQS: A walkthrough by the PHA will verify habitability.

3. Set Fair Market Rent: PHA sets the max payment based on local fair market rates.

4. Sign HAP Contract: Your lease and a Housing Assistance Payment (HAP) contract bind the agreement.

5. Annual Recertification: PHA inspects property regularly; tenants’ income is re-verified.

🛠️ Grants & Funding Opportunities

• HOME-ARP Grants: Binghamton received ~$1.9M for tenant-based assistance and non-congregate shelter development WikipediaHUD Archives+4HUD.gov+4orb.binghamton.edu+4.

• NY State HCR Clean Energy & Housing Grants: Examples include the $3.2M for retrofitting Town & Country Apartments, with 98 units receiving project-based Section 8 broomecountyny.gov+4Homes and Community Renewal+4Wikipedia+4.

• Local Programs: Broome County offers community improvement grants and manufactured housing replacement funds caresny.org+12greaterops.org+12broomecountyny.gov+12.

• Federal Credits: Low-Income Housing Tax Credits (LIHTC) subsidize large renovations and new builds greaterops.org+9broomecountyny.gov+9Wikipedia+9.

📈 Broome County Market & the Opportunity

• Homelessness is surging in the region—a 50% rise from 2020–22, with 483 people shown homeless in Southern Tier shelters; numerous still remain unsheltered WSKG.

• Housing Shortage: The county lost nearly 4,600 children from 2010–21, with 14,000 low-income workers unable to afford rents broomecountyny.gov.

• High Demand + Low Supply = Higher Rents & Low Vacancies. Investors can benefit from strong ROI.

✅ Key Takeaways for Investors

• Guaranteed Income through PHA payments cuts vacancy risk.

• Access to Grants & Credits drastically reduces renovation costs.

• Social Impact: Supporting local housing shortages directly benefits community and bolsters your reputation.

• Tax Benefits: Depreciation, energy incentives, and rehab credits enhance profit.

🛡️ Ready to Get Started?

1. Contact Binghamton Housing Authority to understand local standards orb.binghamton.edu+13binghamtonha.org+13https://www.wbng.com+13.

2. Conduct a walkthrough and apply for Section 8 listing.

3. Explore renovation grants, especially energy-efficiency or supportive housing conversions.

4. Advertise your property to voucher holders; PHAs maintain tenant waiting lists.

5. Build relationships with local nonprofits or agencies like Greater Opportunities of Broome for supportive housing initiatives Wikipedia+12greaterops.org+12https://www.wbng.com+12Wikipedia.

Final Word

Renting to Section 8 tenants in Broome County offers a unique win–win: investors tap into guaranteed income streams, discounts on property upgrades, tax and grant support—and play a pivotal role in solving local housing crises. Between rising homelessness, a shortage of affordable homes, and growing state/federal support, now is a prime time to invest in safe, quality housing with Section 8 backing.

By doing so, you’re not just maximizing your returns—you’re building healthier, more stable communities in Broome County. 🏡

1. Net Operating Income (NOI)

Definition: NOI is the total income a property generates after operating expenses, but before mortgage payments. Income includes gross rent plus any additional income (laundry, parking, charging stations, billboards, etc). This is your Gross Operating Income (GOI). Expenses include things like management fees, routine maintenance , insurance, property taxes, utilities (if paid by property owner), legal/accounting, and vacancy. Note - Vacancy is typically deducted off the GOI prior to calculating other percentage charges like vacancy and management. 

Formula:
NOI = Gross Operating Income – Operating Expenses

Example:
Let’s say you’re looking at a small retail plaza:

• Gross Rental Income: $120,000/year

• Vacancy & Credit Loss: $6,000

• Operating Expenses (repairs, insurance, management, etc.): $40,000

NOI = ($120,000 - $6,000) - $40,000 = $74,000

2. Capitalization Rate (Cap Rate)

Definition: Cap Rate tells you the property’s return if you bought it in cash. It’s a good way to compare properties.

Formula:
Cap Rate = NOI ÷ Purchase Price

Example:
If that same property with $74,000 in NOI is listed for $925,000:

Cap Rate = $74,000 ÷ $925,000 = 0.08 or 8%

A higher cap rate typically means more risk and more return; lower cap rate = more stability, less risk.

3. Debt Service Coverage Ratio (DSCR)

Definition:
DSCR measures a property's ability to cover its debt payments with its net income.

Formula:
DSCR = NOI ÷ Annual Debt Service (mortgage payments)

Example:
Let’s say your loan payments (principal + interest) total $60,000/year.

DSCR = $74,000 ÷ $60,000 = 1.23

A DSCR above 1.2 is generally considered healthy by lenders. Anything under 1.0 means the property isn’t generating enough income to cover the loan.

4. Cash-on-Cash Return

Definition: This metric shows the return on your actual cash invested, not the whole property price.

Formula:
Cash-on-Cash Return = (Annual Cash Flow ÷ Initial Cash Investment) × 100

Example:
Let’s say you put down 25% on a $925,000 property = $231,250
After paying mortgage, you’re left with $14,000/year in cash flow.

Cash-on-Cash Return = ($14,000 ÷ $231,250) × 100 = 6.05%

Quick Recap

Final Thoughts

Start by running these calculations on every deal you look at. Even if the deal doesn’t work, each analysis builds your muscle memory and helps you better understand the market. Remember: it’s not just about buying real estate—it’s about buying good deals. 

Pro Tip: Use a simple spreadsheet or online calculator to plug in your numbers quickly. As you gain experience, you'll be able to evaluate deals in minutes. Also if you are new to a market connect with a CRE broker who is familiar with the area to determine the market vacancy rate, average cap rate and average management fees for the property type you are looking for.

I can help with that. Send me a text or give me a call 607-354-6206

In today's fast-paced world, artificial intelligence (AI) has become a powerful tool for streamlining tasks, boosting productivity, and unlocking new forms of innovation. But as with any powerful technology, the key lies in how we use it. “Using AI as a tool, not a crutch” is more than just a catchphrase—it’s a philosophy for maintaining cognitive strength while leveraging the benefits of automation.

The Power of Cognitive Offloading

AI excels at cognitive offloading—the process of delegating routine mental tasks to an external system. Just as we use calculators to handle arithmetic or calendars to manage schedules, AI tools can help us automate writing drafts, sorting data, or generating ideas. This offloading can free the mind for deeper work, allowing professionals to focus on creativity, strategy, and meaningful interactions rather than the mundane.

For example, in commercial real estate (CRE), AI can automate tasks like lease abstraction, market analysis, and lead generation. This creates space for brokers and investors to focus on relationships, negotiation, and long-term planning.

The Risks of Over-Reliance

However, cognitive offloading comes with a caution. Studies have shown that excessive dependence on AI tools may reduce cognitive flexibility and critical thinking over time. A Microsoft study revealed that workers who rely too heavily on AI may begin to accept AI-generated output without adequate review, diminishing their own problem-solving abilities.

When we stop engaging deeply with content—when we cease to question, reflect, and synthesize—we risk allowing our mental muscles to atrophy.

Counteracting the Creep of Complacency

To prevent AI from becoming a crutch, consider the following strategies:

1. Stay Actively Engaged

Use AI to assist, not replace. Whether it’s generating a first draft or compiling data, ensure you remain involved in evaluating and refining the results. Ask follow-up questions. Probe the assumptions. Cross-check sources. This keeps your critical thinking sharp.

2. Use AI to Spark, Not Settle

AI can be a fantastic idea generator. Writers, designers, and marketers can use AI to explore creative directions they might not have considered. But don't stop at what the AI gives you—use it as a springboard for your own unique contribution.

3. Reflect Before You Deploy

Before accepting AI-generated insights, take time to reflect. Do the results align with your knowledge, values, and objectives? Is there a better or alternative solution the AI didn’t consider? This practice nurtures both discernment and strategic insight.

4. Pair AI with Human Collaboration

AI can handle data, but it doesn’t replace the nuanced understanding, empathy, and intuition that come from human relationships. In fields like commercial real estate, AI might analyze deals, but it’s the human connection that closes them.

How AI Can Enhance Human Creativity

When used wisely, AI can be a creativity catalyst. It can:

• Generate Content: Instantly draft marketing materials, blog posts, or proposals, saving hours of work.
• Analyze Data: Spot trends across vast datasets that would take a human hours or days to uncover.
• Enhance Personalization: Tailor campaigns or communications to specific audiences using behavioral insights.
• Catch Errors: Identify mistakes in documents, contracts, or spreadsheets before they cost time or money.
• Push Boundaries: Challenge assumptions by offering unexpected ideas or alternative angles.

AI in Commercial Real Estate: A Strategic Advantage

In CRE, AI tools can transform the way deals are sourced, evaluated, and closed. They can:

• Streamline Underwriting: Automate rent roll analysis and cash flow modeling.
• Predict Market Trends: Use historical and real-time data to forecast market shifts.
• Enhance Due Diligence: Scan zoning regulations, demographic data, and environmental reports faster.
• Personalize Marketing: Tailor investor outreach or tenant campaigns based on data-driven segmentation.

But the most effective investors don’t blindly follow AI—they use it to sharpen their edge, not to dull their instincts.

Final Thought

AI is not the enemy of creativity and critical thinking—it’s a partner. But just like any partnership, the balance matters. Used mindfully, AI can remove the noise, automate the ordinary, and elevate the extraordinary. As we embrace the future, let’s commit to using AI with our brains, not instead of them.

Ben. Sound good. I just accepted your Linkedin invite

I would also be interested in hearing what folks out there have experienced....hihglights, pitfalls, leasons learned

Hey Lee – first off, thank you for your service, brother. I’m a fellow veteran as well — Marine Corps here — and I’ve got a deep respect for anyone who’s walked the path of service and sacrifice like you have. Your drive to build something better for your family, and to pass on financial wisdom to your kids, really resonates with me.

I’d be glad to connect and help you get started in real estate investing. Whether you’re looking at your first rental, house hack, or want to understand financing, market analysis, or building a team, I’m happy to share what I’ve learned along the way. The transition from military life to building wealth through real estate can be powerful, and you’ve already got the discipline and mindset to win in this game.

Let’s connect — I’m looking forward to walking this journey with you. Semper Fi.

If you're investing in Detroit and need boots on the ground, partnering with a reputable property manager is one of the most important decisions you’ll make. A strong property manager will handle everything from tenant screening and rent collection to maintenance and legal compliance, allowing you to focus on growing your portfolio rather than dealing with day-to-day headaches. Several well-reviewed companies in Detroit stand out. Evernest Property Management is a highly rated firm with over 700 Google reviews and a full-service model, including in-house maintenance and investor-friendly communication tools. They operate out of Royal Oak and are known for tech-forward solutions that provide real-time transparency. Another option is JMZ Property Management, a family-run company with more than a decade of experience serving Detroit and its suburbs. They have a strong reputation for responsiveness and quality service. Rondo Investment is another long-standing firm, managing over 1,000 properties with more than 45 years of experience. They cater specifically to investors and are known for their market expertise and solid vendor network. When evaluating a property management company, look for local experience in Detroit neighborhoods, a tech-enabled platform for seamless communication and reporting, transparent fee structures, and a well-established maintenance process. Be sure to check online reviews, ask for references, and review their management agreement carefully for any hidden fees or cancellation terms. Ultimately, the right property manager will protect your investment, provide peace of mind, and help you scale with confidence in the Detroit market.