Court case section 8

[Eladio Perez]

i just received this "potential lead" minutes ago  ( Providence, Rhode Island), its a 2 building property, one unit is a 3 family and the other one, one family, he tells me that in the 1 family we cannot go in an see because he has a tenant under section 8 and is going thru the eviction with the court. the other 3 unit house is vacant due to renovation he was working on it and seems to stop. told me hes not desperate to sell bu, but i know my fellow Dominicans lol, hes a avoiding a low blow from me on the price.

im looking to see if i should wholesale this to a landlord, seller finance (he owns free and clear) or hard money lending so i can fix and hold. wow! this is my second 2 lead in my whole lifetime lol, i just left a paper at his door yesterday when i was "walking for dollars" yes walking, wont have my car for a few weeks. but im glad i have something.

just checking out how can i approach this and get the best out of it, i would love it to buy and hold but dont know any hard money lenders, what do guys think? 

[Julius T.]

hard money lenders would only lend for 6-12 months if that was what you were thinking of "buy and hold."  If you wanted to own and rent out, you'd have to go through the conventional mortgage route.  

[Victor N.]

@Eladio Perez, Since the seller owns it free and clear, your best bet is to ask for owner financing and you can try to structure the deal so that you wont have to make any payments to him until the repairs are completed within reasonable time of course. You still need some cash for the repairs.

Have you seen the vacant units? How much will you need to finish the renovations. You should bring in a contractor or 2 for an estimate and go from there. 

Sounds like a good deal so make sure you dont overpay. Good luck!

[Eladio Perez]

thanks @Julius T. yes, that is exactly what they told me. i called a few yesterday, it would work with hard money as long as i refinance at the end of loan and eventually get a conventional loan 

[Fred Grant]

I would be careful about making any offers until you see the condition of the other unit. The fact that there is an eviction going on makes it possible that you will make lots of stuff left behind or damage. In addition, I was recently told by S8 that tenants cannot move to a new unit if there are rent arrears. So if the current tenant is being evicted for non payment of rent, then it is likely that they are also going to be losing their voucher and very unhappy. I would be concerned about what they would do to the apartment before leaving. I think it would be better to see the inside (after they have gone) before finalizing your offer and how to structure the payment.