CF Financial

[DH]

Any of you guys ever dipped into the real estate market at all? My cousin has been trying to talk me into buying gov't operated housing properties with him in Paterson, NJ. Each house has 4 single units, and each unit is paid for by the govt under some program. We would hire a local guy who my cousin knows to be the "super" to take care of all the day-to-day shtein, alleviating me from getting shot while looking at or working on my property. He worked the numbers out for me, and it seems like it could be a nice little investment but Im not sure if the risk outweighs the reward..thoughts?

[hbionic]

What are the risks you are looking at and what are the rewards?

Some investors look at the rate of return on their money. Some just want positive cash flow, some just want the write off.

How much would it cost you to invest and what kind of return are you looking at?

[shorebird]

Any of you guys ever dipped into the real estate market at all? My cousin has been trying to talk me into buying gov't operated housing properties with him in Paterson, NJ. Each house has 4 single units, and each unit is paid for by the govt under some program. We would hire a local guy who my cousin knows to be the "super" to take care of all the day-to-day shtein, alleviating me from getting shot while looking at or working on my property. He worked the numbers out for me, and it seems like it could be a nice little investment but Im not sure if the risk outweighs the reward..thoughts?

Sounds like sec. 8 housing. Although your money is pretty much sure thing, there are big time headaches that come with it. I've known supers who do everything up to changing light bulbs for people who are laying on their couch watching tv, and when they move out, there is ususally major, major damage thats been done. Also, most section 8 housing I've seen, pest control is a day to day operation. Just saying.

[Zanshin]

Any of you guys ever dipped into the real estate market at all? My cousin has been trying to talk me into buying gov't operated housing properties with him in Paterson, NJ. Each house has 4 single units, and each unit is paid for by the govt under some program. We would hire a local guy who my cousin knows to be the "super" to take care of all the day-to-day shtein, alleviating me from getting shot while looking at or working on my property. He worked the numbers out for me, and it seems like it could be a nice little investment but Im not sure if the risk outweighs the reward..thoughts?

I know a guy who does exactly that for a living. He swears by it, because the state sends him a check directly. He does everything himself, though, and doesn't have a middle man. Basically, he's a slum lord. It wouldn't be for me, but he seems to make enough money on them.

[hbionic]

Weird.

I know that it is hard to get to the top of the line of section 8 and they usually do not want to risk losing their section 8 so the idea is that they try to maintain the unit. To my understanding there are inspections conducted by the government agency approving the section 8. The inspection is also meant to prevent zesty living conditions.

But yeah, I guess each area is different.

I would still take a chance depending on the cash flow. Unless you have another financial vehicle that can provide you the same cash flow, this would seem like a good risk to take.

[DH]

Yup, it's section 8..

The main risk would be putting up my cash (10% the value of the home) for a place that I will NEVER see, in an area which is very well known for its violent criminal activity. Should something happen, insurance would cover it, but the headache that could be a drug deal gone bad in my house, etc. would probably be never-ending..

I feel like when I ask people how this guy or that guy made all his money, the answer, more often than not, is real estate; I'm just not sure if this is the type of real estate that can get me rich.

This isnt intended to be my sole income by any means at all. I'm perfectly happy with my job/career so the main idea here would be to throw a bit of money into this, hoping to bank a few extra grand a year and if it works, increase the spend next year..

[Diomedes]

you're asking us if you should become a slum lord?  go in with the government on warehousing the disenfranchised and unemployable, for money?

for money?

come on man.  leave that game to dirtbags...surely you can find a less predatory way of getting some cash flow and diversity in your porfolio

[DH]

become a golf pro?

[Diomedes]

okay...less predatory but also less douchey

like rehab a house and rent it.  or put some money up in partnership with people who do that kind of thing.

I don't know.

Sec. 8 is a disaster.  Making money off those people and that system is kinda like taking welfare yourself when you don't need it.  Sure, it's legal, but christ it's cynical.

[Rome]

There is nothing wrong with the section 8 program that isn't wrong with every other entitlement.

There's abuse.  There's corruption.  But overwhelmingly the system helps those who can't help themselves.

The only thing cynical about it is our reaction to those who desperately need housing but can't afford it for a multitude of reasons.

[DH]

I don't see too much wrong with the concept or making money off of it, and my cousin is kind of a greasy lawyer so this kind of thing is right up his alley..he's driving the train on this one, I'm just deciding whether or not to jump on. I never would have thought to even do this before he asked me if I was interested, so I'll probably stay away, but it does seem like a pretty easy and legal way to make some nice extra money.

[Diomedes]

the people who make money off the destitute (or for that matter the government) usually are greasy

just sayin'

[PhillyPhreak54]

[Sgt PSN]

If you want to get rich you should just bet against the Heat.

[hbionic]

Does anyone here have a life insurance policy? How much do they run?