Posted by John J. on January 21, 2001 at 18:59:13:
I have no plans to go to the convention, but feel free to email me with any questions that you may have.
LOW INCOME DUPLEXES - Posted by ANTONIO RIVERA
Posted by ANTONIO RIVERA on January 16, 2001 at 17:23:45:
HELLO ALL,
I’M THINKING IN INVESTING IN R.E. THERE ARE PLENTY OF HOMES ESPECIALLY DUPLEXES IN A LOW INCOME AREA, I AM LOOKING IN TO … IS THERE $$$ IN THESE AREAS… OR IS IT A WASTE OF TIME??? THE HOMES ARE DIRT CHEAP TO BUY AND THE TAXES ARE VERY LOW… PLEASE HELP!!! I NEED ADVISE…
there’s a book you should check out… - Posted by David Krulac
Posted by David Krulac on January 19, 2001 at 21:55:07:
“Streetwise investing in rental housing” by H. Roger Neal
Opportunities - Posted by John J.
Posted by John J. on January 18, 2001 at 09:17:05:
Most of my investments the last 20 years have been in low-income housing. I buy them from foreclosure or from owners who are tired and sick of dealing with them. I have done well, but have seen many, many people who invested in the same area who just could not handle the unique situations and problems associated with low-income tenants that they were surprised with time and again. They got so fed up that they sold their buildings at a loss or let them go in foreclosure. I am spending about twice as much time and twice as many maintenance dollars per $1,000 rental income at my low-income housing as I do at my deluxe townhouses. Turnover is much higher too.
In 1981 I started buying in one run-down area of 52 4-plexes. As buildings became for sale cheap I would buy them. After 10 years I had 13 buildings in one city block. I fixed them up very nice, cleaned up the outside, rehabbed the insides, then worked on improving the exteriors again (landscaping, painting, etc.) That’s when the frustratins started with a few of the other owners who were truly slumlords: junk cars, furniture, and grafitti al over the place. Their buildings were run down and infested with gangs. We would regularly see our neighborhood on the evening news, scaring a way the good tenants and making it hard to rent to decent people. Tenants who I evicted would move into a building down the street, causing the same problems for their new landlord. I formed an association with the other good owners. We started colaborating and meeting with various departments of the city (zoning, ordinance, building inspection, and the police). We asked them to strictly enforce the laws applicable to their areas of responsibility. One of the owners donated the use of a unit to the cause for the police to establish a neighborhood office. The city assigned a police officer to the area to work out of this office. We now have a monthly meeting with the city that is open to all owners, but only the good owners attend. We use it to get the bad owners in line. The building and fire department inspectors recently went out and went through several of the bad buildings and issued compliance orders subject to fines. The ordinance officer does a weekly inspection and we have a zero-tolerance policy. The good owners will also call in ordinance violations that they see during the week, such as unlicensed or inoperable vehicles, furniture on the lawns, overflowing garbage cans, grass or weeds over 6", snow on the sidewalks, etc. One of the bad owners got fined $6,000 and he finally got the message. His buildings are now in good shape. As a result the building values, which were the lowest in the region, have quadrupled and are now in line with the rest of the county. Yesterday a lady came to look at a vacant unit and she said she truly did not recognize the area from 10 years ago when she had come through. She now actually filled out an application, which she certainly did not back then.
Re: LOW INCOME DUPLEXES - Posted by Jack
Posted by Jack on January 17, 2001 at 02:19:19:
Mark knows his stuff from what he posted. Sounds like a good deal to me. I wish I could find those deals where I’m located. If you ever invest in north Texas give me a holler. We have a rehab company. Good luck!—Jack
Re: LOW INCOME DUPLEXES - Posted by MARK DELUNG
Posted by MARK DELUNG on January 16, 2001 at 20:37:31:
yes there is money but must do it right. get rehab done to qualify for section 8 or other gov. rent subsidies programs. e-mail me if i can help
John, are you going to the convention? - Posted by HR
Posted by HR on January 21, 2001 at 16:28:57:
John,
Are you going to the convention? I would love to pick your brain, if you are. I’ve just started investing in these cash cows during the last year and would love to learn from some of your experiences. Free dinner on me, if you go. Let me know.
HR
Re: LOW INCOME DUPLEXES - Posted by john
Posted by john on January 22, 2001 at 14:58:06:
mark - i am interested in section 8 rentals. i need a step by step hand holding guide. any suggestions?
thanks
Big money. - Posted by HR
Posted by HR on January 17, 2001 at 21:54:10:
Mark,
When you can buy homes cheap, fix cheap, manage cheap, and rent high thru section 8, you can make a tremendous amount of mula. This is a specialized niche, though. Really learn what you are doing. I suggest joining your local reia group (www.nareia.com) and networking with others who are doing this so you can learn what the industry numbers should be (and how to run the numbers on this type of property in general). You will have others try to dissuade you; don’t let them. This is an incredibly profitable niche, if you learn to master it.
Good luck,
HR