All Forum Posts by: Arman Ahmed

@Cameron Porter

Cameron,

Typically, tenant-occupied properties sell for the same or less than vacant properties, unless the lease terms are particularly favorable. Here’s why:

When a Tenant-Occupied Property Might Be Worth Less:

1. Below-Market Rent: If tenants are paying under-market rates, the property’s cash flow suffers, reducing its value to investors.

2. Tenant Risk: Difficult or uncooperative tenants can be a headache for new owners, leading to potential legal fees or vacancies.

3. Limited Buyer Pool: Owner-occupants (who might pay more) typically prefer vacant properties.

When a Tenant-Occupied Property Might Be Worth More:

1. Long-Term, High-Quality Tenants: If the lease is at or above market rate with responsible tenants, investors might pay a premium for immediate cash flow.

2. Turnkey Investment: Some buyers want rental income from day one without dealing with leasing.

Key Consideration:

• Cap Rate & Cash Flow Drive Value for Investors. A property with strong rental income, even if tenant-occupied, should be priced based on its return.

If the property is selling for more just because it’s tenant-occupied but the numbers don’t justify it, I’d push back on the pricing. What’s the rent vs. market rate?

@Debbie Nunez

Debbie,

Mobile home investing can be profitable, but there are key factors to consider:

1. Cash Flow Analysis

• Land Lease: $700/month is a significant fixed expense.

• Market Rent: What are similar mobile homes renting for in the park? If rent is below $1,500/month, your margins might be too thin.

• Expenses: Factor in property taxes (if applicable), insurance, maintenance, and vacancy costs.

2. Park Rules & Stability

• Lease Terms: Check if the land lease can increase yearly and by how much. Sudden hikes can kill cash flow.

• Park Management: A well-run park is key. Are there restrictions on renting it out?

• Park Ownership: Corporate vs. private ownership affects lease stability and future rent increases.

3. Exit Strategy

• Resale Value: Mobile homes depreciate like cars unless they are in high-demand parks.

• Financing Challenges: Many buyers won’t qualify for traditional mortgages, limiting resale options.

4. Alternative Approaches

• Seller Financing: If the park allows it, you could sell the home with seller financing to maximize returns.

• Own the Land: If possible, owning land instead of leasing is better long-term.

This could work if rental income is strong, but the land lease cost makes it tricky. Let me know if you want a deeper analysis!

James,

Congrats on getting into real estate at 25! That’s a huge step. A few things to consider:

• Cash Flow vs. Appreciation: At $2,500–$2,600 in rent on a $290K purchase, your numbers are a bit tight for strong cash flow, especially with a 7.35% interest rate. Have you factored in maintenance, capital expenditures, vacancy, and property management (even if you self-manage now, it’s good to budget for it)?

• Long-Term Hold: If your plan is appreciation, make sure the area has strong economic and population growth. If rents can increase over time and you plan to refi when rates drop, this could work out well.

• Scaling: If this is your first deal, it’s a great learning experience. Focus on optimizing cash flow, keeping reserves, and planning for your next purchase.

I work with a lot of investors who start with duplexes and scale up. If you ever want a second set of eyes on your deal or strategies to maximize cash flow, let’s connect!

@Brenda Reems

Brenda,

You’re asking the right questions, and it’s great that you’re digging into the numbers before jumping in. A few things to consider:

• Cash Flow & Returns: Your current rents ($1,800 total) put you just under the 1% rule, but you’re close. If you transition to MTR (mid-term rentals) and can get $1,200–$1,800 per unit, that could significantly boost your cash flow.

• Expense Cushion: Maintenance at $3,000 might be optimistic, especially with a duplex (two of everything). Have you factored in vacancy, capital expenditures (roof, HVAC, plumbing, etc.), and potential management fees?

• Loan Terms: The interest rate and loan terms will play a big role in whether this deal makes sense long-term.

I invest in Columbus, OH, and work with out-of-state investors looking for cash-flowing properties. If you’re open to other markets or want a second set of eyes on your deal analysis, let’s connect. I’d be happy to walk through the numbers with you and see if this aligns with your investment goals!

@Angela Wang

Angela,

It sounds like you’ve built a solid foundation with house hacking and are now ready to take things to the next level—exciting! Expanding into BRRRR and flipping in Tampa and Miami is a great move, especially with your connections to foreign investors.

I’m based in Columbus, OH, and focus on buy-and-hold, BRRRR, and flipping strategies. I primarily work with out-of-state investors looking to scale in the Midwest, where cash flow and value-add opportunities are strong. If you’re open to exploring different markets or want to discuss strategies for structuring deals, syndications, or working with lenders and property managers, let’s connect. I’d love to see how we can collaborate!

@William Coet

William,

Finding a 5% interest rate for a 5-10 unit multifamily property in today’s market is tough, but not impossible, depending on the lender and loan type. Conventional lenders typically offer higher rates right now, but you might find better terms through local credit unions, community banks, or portfolio lenders, especially if you have strong financials.

You may also want to explore creative financing options like seller financing or assumable loans, especially if the seller has an existing mortgage with a lower rate. Some investors are structuring deals using loan assumptions combined with supplemental financing to make the numbers work.

In Columbus, OH, where I primarily work, we’ve been seeing lenders get more flexible with DSCR (Debt Service Coverage Ratio) loans and hybrid ARM products. If you’re open to discussing options or looking at alternative markets that might offer better cash flow, I’d be happy to help. Let me know what your purchase price range is, and I can point you in the right direction!

@Brad Currao

Brad,

You’re off to a great start by narrowing down your focus and working with a local agent in Myrtle Beach. Short-term rentals (STRs) can be profitable there, but it’s crucial to check zoning laws, HOA restrictions, and seasonality trends before committing. If you’re considering long-term rentals, focus on areas with strong job growth and year-round demand.

Since you’re based in New Jersey, investing remotely can be challenging, but having the right team—agent, lender, property manager, and contractors—will make the process much smoother. Also, as Jason mentioned, investor loan programs with lower down payments are worth exploring, especially for 2-4 unit properties or value-add opportunities.

I primarily work with investors in Columbus, OH, which is another great market to consider. Columbus offers strong cash flow, affordable entry prices compared to coastal markets, and steady rental demand driven by Ohio State University, major employers, and a growing tech sector. If you’re open to exploring other markets, I can help you analyze deals, source properties, and connect you with lenders and property managers here.

Let me know if you’d like to chat more about Columbus or need help evaluating deals in Myrtle Beach!

@Danny Lucero

Hey Danny 

From what you’re describing, it sounds like the contractor did a partial repair rather than a full rebuild. If they initially quoted you $2,500 for a complete chimney rebuild but only did tuckpointing, some brick replacement, and minor structural work, then $1,500 might be high for what was actually done.

A full rebuild would involve tearing it down to the roofline and rebuilding it with new matching bricks, which they didn’t do. Since they cited steepness and lack of a lift as reasons for not completing the job, it seems like they underestimated the project’s difficulty.

If you’re unsure about the quality of the work, you could get a second opinion from another mason. If they confirm it’s just a patch job, you may want to negotiate the price down since you didn’t get what was originally promised.

@Michelle Fox

In Cleveland, properties built before 1978 are subject to lead paint regulations, as the use of lead-based paint was banned in 1978. Landlords must ensure that their rental properties are lead-safe, especially when children under 6 years old are present. You’ll need to obtain a lead-safe certification for your property, which involves conducting a lead inspection and remediation (if necessary). The certification process may include an inspection by a licensed lead risk assessor.

For more specific guidance and to ensure compliance with local regulations, you may want to contact the City of Cleveland’s Department of Health or a lead-certified professional in your area.

@Andre Brock

Hey Andre,

I’m an investor-friendly agent active in Ohio and always looking to connect with other investors. Novations are definitely an interesting strategy—have you been using them mainly for distressed properties or more turnkey deals? I’ve seen some investors make it work well in Cleveland, especially in areas where sellers are struggling to get their asking price. Would love to hear more about your experience and how the market has responded! Let me know if you ever need any boots on the ground or market insights.