BRRRR - Buy, Rehab, Rent, Refinance, Repeat
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Updated over 1 year ago,
Section 8 housing please help!!
Hello everyone, I need some serious advice for a property I want to put under contract!
It's a off market deal on a duplex 1br/ba each unit roughly maybe 700 sq TOTAL that the owner is leveraging how she checked HUD a year ago and each unit can get up to 1100 voucher. Asking price is down to 165k n owner wanted 200k just went down and is not going any lower.
I’ve seen the property and it’s in a good shape fully renovated one side has a mini spilt other has a Portable AC unit. The whole place is turn key and not very large.
I've basically told the listing agent that confirming that HUD voucher is extremely important. the numbers with 2200 in rent work out to us cash flowing roughly 1200 using BP tools.
So my question is does anyone have any information on how to go about doing this? I'm not the owner so I can't call HUD and require the numbers. My next biggest fear is those numbers aren't correct for vouchers and refinance appraisal won't be 200k as we would be a conventional loan on it and look to BRRRR it but the numbers play out that in 2 years we'll be positive and have all the money spent to close this deal without a refinance. I just don't want all that capital gone so early in my investing journey.
*big disclaimer when we went for our showing there was a squatter we had to remove* the neighborhood doesn’t look the best and the house across the street was just completely redone and listed for 235k but much bigger 3br/2ba and that’s the only comp available within a 5 mile radius. It’s one of those right next to downtown in that area and all the main attractions but it’s the rough street you go down by a mistake when going out.