All Forum Posts by: Kyle Wollin

What about section 8 have you had bad luck with I'm about to acquire a property with section 8 already in place. Appreciate any info. Thanks

Anyone ever bought a USDA apartment with rental assistance and took it out of the program? Would appreciate any assistance. Thanks. Looking for some success stories

Actually I contacted the buyer because a broker let it slip he might want to sell. All the numbers are from the sellers property manager then I put the numbers together to come up with an asking price but haven't presented it to him yet. Only the rent numbers are from me which I got from a market analysis of the area. Being in this program had people in a waiting list for this property since they get government funding so occupancy is always good. It's actually in a descent area and was built in 1974 so could use some updates but not bad. My only fear is switching it from the section 515 to the regular market

So I know what everyone says keep it simple on first purchase but this seems like I have too if I could get it at this price, right? The kicker, its current in government 515 where there's assistance on rent and lower taxes on property. So these rent rates our my research on market value. Current renters are 62+ or disabled and like it there and could get a voucher with section 8 to pay for my price of current market rent and take it out of section 515 program. These are the numbers and would really appreciate any feedback. Thank you in advance Revenue Gross Potential Rent= $550/month x 8 =$4,600 x12= $52,800 & $475/month x 8 x 12 months =$45,600= $98,400 + $1,427 laundry= $99,827 Vacancy 10%= $9840 Gross Potential Revenue= $89,987 Expenses Operating/Main. Expenses= $18,358 Administrative Expenses= $14,727 Total Utlilties= $8,990 Taxes/ ins right now= $9,888 but taxes would jump to $7,500 per unit so would increase it to $19,888 Media Expenses= $761 Total Expenses= $62,723 NOI=$89,987-$62,723=$27,264 Property worth using cap rate of 10%= $27,264/.10= $272,640 x .2 down= $54,528 $218,112 loan at 4% for 25 yr with 5 yr ballon= $1,030/month x12= $12,360 Expenses + mortgage= $75,083yr Cash Flow= $89,987- $75,083=$14,904/12=$1,242 month

So I know what everyone says keep it simple on first purchase but this seems like I have too if I could get it at this price, right? The kicker, its current in government 515 where there's assistance on rent and lower taxes on property. So these rent rates our my research on market value. Current renters are 62+ or disabled and like it there and could get a voucher with section 8 to pay for my price of current market rent and take it out of section 515 program. These are the numbers and would really appreciate any feedback. Thank you in advance Revenue Gross Potential Rent= $550/month x 8 =$4,600 x12= $52,800 & $475/month x 8 x 12 months =$45,600= $98,400 + $1,427 laundry= $99,827 Vacancy 10%= $9840 Gross Potential Revenue= $89,987 Expenses Operating/Main. Expenses= $18,358 Administrative Expenses= $14,727 Total Utlilties= $8,990 Taxes/ ins right now= $9,888 but taxes would jump to $7,500 per unit so would increase it to $19,888 Media Expenses= $761 Total Expenses= $62,723 NOI=$89,987-$62,723=$27,264 Property worth using cap rate of 10%= $27,264/.10= $272,640 x .2 down= $54,528 $218,112 loan at 4% for 25 yr with 5 yr ballon= $1,030/month x12= $12,360 Expenses + mortgage= $75,083yr Cash Flow= $89,987- $75,083=$14,904/12=$1,242 month

Just wondering if anyone on here has gone through a transfer process of these properties and was it worth dealing with the government? Thanks!!

Meeting with the guy on Thursday and don't know much about usda loans. He has two 8 unit apartments rented out to elderly that qualifies for section 515. This would be my first purchase so am nervous it might be to complex for me but would love a property that has good cash flow to start out and then go from there with other single family homes as the area doesn't allow for much cash flow unless u find a smokin deal. Can I take out a loan also through section 515 with a 1% interest rate? Appreciate the help am super excited and need to sound like I know what I'm doing so thank u!!