All Forum Posts by: Michael Lauther

Hi Richard: I live in Hampton Bays NY but invest predominantly out of State. Let me know if I can be of any help. Good luck and welcome to Bigger Pockets.

I have heard and read about this approach working well for special needs housing. I am working with a blind woman now who is employed but gets govt, support and would gladly share with other tenants. the hard part is finding those with special needs and the govt organizations that could support this type of housing. would be interested in anyone who is doing this now outside of college student housing which in my area has already been priced for the higher rents paid by the room with all utilities included etc.

I have worked with Catholic Charities in Dayton Oh. They are connected to the State Department and relocate people from various parts of the world. You should check out your particular charity on line. they should also be able to give you references from other participating landlords. Typically the charity helps in relocation and finding Jobs but will not guarantee rent beyond several months.

Good luck and i would be interested in what you discover and your experience if you choose to pursue this.

Logan, the 2% 50% guide is an excellent starting point when evaluating a property. On lower priced SF properties it generates a %12 return. for example a 25,000 property that rents for 2% 500 monthly would have expenses of 50% = $250 and a profit of $250.
This translates to $3000 annual profit and 12% return on your $25,000 investment.

My strategy is to buy cash and hold for income. if I cant buy a property that meets this criteria, I pass. Others look for appreciation in markets that are set to appreciate because of demographic factors like population increases and home prices that have collapsed because of the bursting real estate bubble.

It appears that your properties are in Ohio (I am invested in Dayton) My strategy in Dayton is to buy and hold because Invest for income not appreciation. (although I would like some) Dayton is losing population and has the highest vacancy rate in Ohio but this has caused investors to exit this market and has left home values devastated. This is where I find opportunity to buy rehab and rent and in some cases can earn up to 20% or more on my cash investment.

Currently have an offer for $7K on a property that will take $10k to bring it to pristine rental condition and will rent for $550 monthly. Already have a qualified tenant lined up. this will generate over 19% on my invested cash.

Phillip, I rarely laugh out loud (LOL) but his did it for me.
thanks

Jeff: can you define concession value? What do the numbers represent? Occupancy? would like to understand your post.

I have to second Rich with respect to property managers. They seem to lean toward the lower end of the scale to get the property rented quickly. a case in point is my recent experience. The prior rental was 525 monthly. the majority of the property managers suggested a 475 rental for a property that has been renovated to excellent condition. I had some interest at $575 and finally rented it for $550 a month. I had to work harder at getting it rented and went through many applicants before making the final decision but feel it is worth my effort. I have since rented a second property in the same area for $550 monthly and I am now working with a 3 bedroom and look to get $625 monthly. The low rental estimates is what kept me from using a property manager to handle the property. I am an out of state investor and need to have reliable people available locally to assist in managing the property.

I am predominantly a buy and hold landlord. I buy properties to hold and live off the net rental income. If i buy a property rehab it and then rent it. I could net anywhere from 15% - 22% net income from that property. If I were to sell the property the selling price would reflect my efforts and the investor who buys that property would probably net 10%-12% return. this is fair because i assumed all the risk of the purchase rehab and rental and took the time to put a qualified property manager in place. I have researched the marketing area and have gotten to know the area zip code by zip code and street by street.

If you cant find comps neither will your end buyer. No comps can mean that there are no sales and the market is dead right now or it can mean that the target property is overbuilt for the area and not many other comparable properties exist. either way I would consider the most conservative value.

Equity trust will allow you to set up a one time LLC owned and funded by your SDIRA but it is on a case by case basis.