All Forum Posts by: Karolina Powell
Karolina Powell has started 21 posts and replied 101 times.
Post: Allowing dogs and what types

- Posts 104
- Votes 81
First check with your insurance - many insurance companies exclude dogs or exclude specific breeds of dogs
Post: Advice for dealing with wholesalers

- Posts 104
- Votes 81
What sort of wholesaler is this? Is it one of the large popular wholesaler groups or just someone doing it solo? That would make a difference in how I approach it. Keep in mind that if this is a steal and you request all of the above that some people are suggesting, then there's a chance the wholesaler won't deal with you and just take it to someone that is less "needy."
Post: What is the threshold to walk away because of what the inspection report reveals?

- Posts 104
- Votes 81
I'll say the same thing as above - if I got a deal, this would not scare me away. Additionally, a lot of this should have already been factored into my offer - I can see the state of the windows, gutters, and roof before I make an offer.
Post: How often does Section 8 end up paying less than the previous Section 8 lease?

- Posts 104
- Votes 81
I'm contemplating diversifying into an area near me that is predominantly section 8 ("S8") housing. I enjoy the idea of having a "guarantee" of payment for a portion of my portfolio, if you will. I am reviewing some deals that already have section 8 tenants in them. These S8 tenant's rent payments are below HUD's max payment standard for the area, but they are above what I would feel comfortable stating is the market rent based on other listings in the area. For example, S8 tenant is in there and the lease is paying $1500/month, similar unit nearby with similar amenities is listed on Zillow for $1200/month.
For those who invest in S8 areas, does HUD in your area generally continue paying the same or more amount of rent each year? Have you ever experienced a drop in rent from one tenant to another (assuming unit is in similar condition)? Is it common for there to be a discrepancy between what section 8 is paying and what market rent is? I understand that there shouldn't be as section 8 is supposed to be paying market rent.
I thank you for any insight!
Pertinent information:
Location of properties: Western Pennsylvania
Where I am, in western Pennsylvania, the tenant is not allowed to pay anything extra on top of what Section 8 is paying.
Post: Portfolio where the per unit price is sub 75K - anyone lending?

- Posts 104
- Votes 81
Looking at a 1.2M portfolio with 17 units, 12% cap rate. Running into high interest rates since the per unit price is sub 75K. Anyone have lenders willing to lend at ~70K per unit at around ~7.5% interest without a big buydown? Thanks!
Post: Any Markets still follow 2% rule for rental properties

- Posts 104
- Votes 81
I get 1%-1.5% in the Pittsburgh area but I avoid the parts that get 2% here.
Post: Retired at 34 with 5 Kids Thanks to 3 House Hacks—Here’s How I Left My $147K Job

- Posts 104
- Votes 81
Congratulations! I'm super impressed with your numbers per unit as well. I have a whole lot more units to get those figures.
Post: Seller Finnace as exit strategy

- Posts 104
- Votes 81
I am actually in talks with a seller in the same situation - wants to retire, trying to liquidate his portfolio, I'm interested in about 20% of it. If I were you, I would suggest being flexible. For example, instead of financing to 70% LTV, would you be willing to self finance 10-15%, then the buyer can put down 10-15% and finance the remainder with a DSCR loan? Otherwise, you can offer this as an option for someone who may not have great credit. Otherwise just sell it in pieces outright if people can get their own loans.
I am assuming these are 1-4 residential units. If you have mixed use or 5+ unit properties in these, then that interest rate is much more comparable and you may have more buyers willing to finance with you.
Additionally, if any of your portfolio is in western Pennsylvania, let me know.
Post: Dscr Loan Question

- Posts 104
- Votes 81
As others have stated, you should be able to get a letter from your DSCR lender. Additionally I provide proof of a downpayment with the letter with my offers
Post: [Calc Review] Help me analyze this deal

- Posts 104
- Votes 81
How are you coming up with the ARV and the rehab costs? If this was my first deal, I would go step by step and put in a cost for each part of the estimated repairs