Episode #56 - Deal of the week - Shelby, Ohio

TL;DR

This podcast episode discusses a 50-unit apartment complex in Shelby, Ohio that is currently under a HUD contract, providing subsidized rent for low-income tenants. However, there are concerns about the future of the contract and the high rents being charged for the area.

Transcript

and welcome to learning from us podcast as always I'm Seth this is Paul and this is Andrew it's Andrew right Zander we're here today for another wonderful deal of the week but first Paul you came over to my new house last night I did it was wonderful yeah welcome up nor Andrew Andrew Athenians games so he can join us I wasn't yeah yeah yeah no I I ... Read More

Key Insights

• 😘 The apartment complex is currently under a HUD contract, providing subsidized rent for low-income tenants.
• 🇦🇪 The high rents charged for the one-bedroom units may be above market rate for the area.
• ❓ There is uncertainty about the future of the HUD contract and whether it will be renewed.
• 😑 The hosts express concerns about the potential risks and downsides of investing in this apartment complex.
• 👻 The purchase price suggested by the hosts is significantly lower than the asking price for the property.

Questions & Answers

Q: What is a HUD contract?

A HUD contract is a form of government assistance that provides subsidized rent for low-income tenants. The government pays a portion of the rent directly to the landlord.

Q: What happens when the HUD contract expires?

When the HUD contract expires, the owner can choose to renew it or find new tenants. If the contract is not renewed, the owner will need to find new tenants who can afford market-rate rents.

Q: What are the concerns about the high rents in Shelby, Ohio?

Shelby, Ohio is a small town with a relatively low median income. The high rents charged for the one-bedroom units may make it difficult to find new tenants if the HUD contract ends.

Q: What is the suggested purchase price for this apartment complex?

The hosts suggest a purchase price of around 1.1 to 1.2 million dollars for the 50-unit complex.

Summary & Key Takeaways

• The hosts discuss their personal experiences with moving into a new house.

• They introduce a 50-unit apartment complex in Shelby, Ohio that is currently under a HUD contract.

• The complex primarily consists of one-bedroom units with high rents, subsidized by the government.