All Forum Posts by: Angelo Mart

Great question as I am a State Certified Appraiser. 90 % of cases it is NOT valid. But It is valid if it is Identical, no other Similar Sales, Suburb or Rural area and attends the SAME school district. I appraised a mansion in my town that was 5,000 SF. No other sales even close to that in town. I found one sale at 4,000 SF in my town and adjusted upwards. I found one sale in neighboring town that was identical to my house. The neighboring town is similar and Attends the same School district. However, the neighboring town is superior to my town with a higher overall Median Sale Price. Therefore, that sale was adjusted DOWNWARDS for being in superior market. A lot of variables go into selecting "COMPS" most comps from realtors are INVALID. It all depends on the Subject Property

Things vary state by state for sure. I joined the "POA" Property Owner Association of NJ which was the best move I ever made. In your state look for a Property Owner or Landlord owner association NOT an investor group. My association is Ran by big time Property Managers and Attorneys. Tons of content to last a lifetime and best move I ever made in this business.

A friend of mine owned a management company at the time I rented my units out. His office specializes in Section 8 and has a relationship with most of the caseworkers and inspectors in my city. Even with that the inspector did fail some minor small things which is amazing because the house was a full gut renovation. Lead based paint is the biggest issues so make sure you have disclosures and or lead certificates. To make things more annoying I have my annual inspections coming up in May for my property. The annual inspection is ridiculous because the city Section 8 office does not even do it, they sub it out to some idiots that either never show up or don't know what to look for. If you are buying a dump of a property I would not suggest section 8 as the inspectors can fail you for pretty much being a slumlord (rightfully so) but if it is good condition, rehabbed of newer construction then Section 8 is the way. My home was fully rehabbed but I utilized all super Cheap Stuff. In the event the tenant breaks something, the cost to replace is minimal. Once you go through the process then you are on the "Payroll" as landlords call it. Starting at the end of 2017 all of my Section 8 is direct deposit on the 3rd of the month. The rent is at market rate and guaranteed. If the tenant does not pay their portion which happens often you must notify section 8. In some cases section 8 will pretty much make the tenant pay you as they could face eviction over Non-Payment. The tenants could be a little rough but I love it. For instance, one tenants (who pays a large portion actually) did not pay her portion for the month of January. When I called her she avoided me. Finally she answered the phone and said she has no money, has health issues and her baby father just got shot last week and she is depressed. She has an excuse every month. I no longer deal with her lies of ********. I called my lawyer and he files an eviction notice to Section 8 and her (which is required by law). She then magically paid and has been on time every month since lol. Besides her my other 4 tenants are awesome. Overall, I love section 8 and will keep doing it. Just have a Strong Landlord Tenant lawyer that understands Section 8 and can get issues resolved quickly if need be.

Originally posted by @Melissa Nash:

@Thuy Pham-Satrappe I do!

Here is the info;

Paid cash $18k

$6k rehab quote

Rents for $625/mo

PM found a squatter, stole copper and needs new hvac.

New rehab cost $16k

Total in $34k

Pm placed section 8 tenant after 1 week

Cash flow =(No loan) $560/mo

Guaranteed rent check - section 8 is awesome for that. Pm deals with everything, I will never actually visit this property, high rental demand area, will never appreciate, and I sleep good at night.

Me= happy camper.

SECTION IS SO GREAT SECTION 8 IS NEVER LATE

I am not sure where you are looking to invest but I love my city which is considered a "high crime" area and the dope capital of NJ. I NEVER buy single family homes due to economy of scale and my type of business plan. However, my city is predominately 2-4 units which is typical in high crime urbanized areas of NJ. I purchase low, rehab and rent out to section 8 tenants only. I basically did TONS of research on the city and discounted the complete worst of the worst blocks since vacancy and turnover is higher. I then kept an eye out for the better areas of town. As long as the city and or town population has been increasing you are much safer. I rehab with all cheap flooring, cabinets etc and rent to Section 8 tenants only in this area. Last, I have a local and experienced property manager oversee my portfolio. Make sure property manager is experienced and has a contract with you (I caught my last 1 stealing) with a cancellation policy. It is the same two tenants (out of 7) that always complain about non-sense that is irrelevant besides that its good. SECTION 8 is great and never late !!!

The highest property taxes in the Nation. Overpopulation and lower housing inventory has lead to over inflation of real estate prices. The only cheap area is Irvington which is located in the middle of Essex near Newark. However, the property taxes here are HIGH, rents are okay at best, many of the homes need a lot of work to bring it up to current code (by town) and some streets you might not want to live on!!!! Keep looking the right street is worth it

Yes, I closed my first flip while I was on vacation in Cali...My attorney acted as POA

The acquisition price of distressed property has increased substantially especially on REO sales. Additionally construction costs have been on the rise and the ARV (upper end) has remained stable with appreciation capped out. At the present time you will need More Capital in the deal. Market has shifted

Section 8 is oh so Great!!!

Hello! Does your bank provide financing for Non-Owner Occupied Investment Properties held in an LLC?