All Forum Posts by: Alex Gadbois

@Dan Maciejewski  Thanks.  This is good info

@Joe Bertolino  currently  section 8 pays $777 per month.  That being said, she can get more depending on the zip code.  

Hello everyone,

11/8/21

Here is the situation. I own a small house (SFR) in Sacramento, CA that is occupied by a section 8 (also known as SHRA) tenant. I have owned the house for almost 5 years and the tenant has been there for longer than I have owned it. I purchased the house through seller financing, and I have a balloon payment that comes due 3/1/22. I am currently out of work and unable to refinance. My only option is to sell the house so I can pay off the balloon payment. This is fine by me, because I will likely make a good profit off the house (bought it for $130k, worth at least $230k now).

I served the tenant with a 90 day notice to vacate on 10/1/21.  I also told her what was going on several weeks before sending the notice just to give her as much time as possible.  So, she is supposed to be out by 12/1/21.  My goal is to get the place fixed up and sell it as a vacant house.  I am working with a realtor and following his advice.  

Here is the problem.  The tenant has been unable to find a place to live.  She says she has been looking a lot, but is unable to find anything.  She has 3 dogs which can complicate things and doesn't have much money and is in poor health.  I really hope she will find a place and be out by 12/1, but that is 3 weeks away.  If she is not out by 12/1 what do I do?  There is the option to list the house for sale still occupied, but this will probably scare off some buyers and affect the quality of offers I get.  I would hate to have to go through an eviction because that could turn into a nightmare.   Any ideas?

Thanks,

Alex

I live in Sacramento, CA which is also where my rental is located.  

Here is the situation:  

I live in an apartment that I rent, but I own a 2/1 SFR rental which is occupied by a Section 8 (also called SHRA) tenant. This is a situation that used to make sense, but not so much anymore. My rent (where I live) has gone up from $900 per month to $1225 and I suspect the landlord will raise it again. I also used to live close to where I work, but I no longer have that job. My apartment also could use some remodeling, but I don't think the landlord will do it until I move out. The area is also not what it used to be. So basically, I am now paying more for less.

   I have owned my rental property for over 3 years, but the tenant has been there much longer (I think 10 years).  She is an older unemployed woman and has really made the house into her home.  She has mentioned the possibility of moving to Santa Cruz to be closer to her daughter, but I don't see that happening.  Her rent has been $950 for years (too low).  It would make a lot of financial sense for me to just move into that rental.  It would also be nice for me to just live in my own house instead of maintaining this while renting an apartment. If the tenant were to just move out it would be an easy decision for me, but that does not seem likely.

   So, if I wanted to remove the tenant and move in, how would that work?  Is that even possible right now?  How does that work with Section 8?  I hate the idea of having to serve an old woman on government assistance an "eviction notice" (if that's what it's called in this case).  I know moving out would be tough for her, because she has been settled in there for so long.  And then where would she even live?  So if I want to remove my tenant and move in, would it be possible, and how would I do it?  Thanks. 

I own in a Duplex in North Highlands, CA.  One half of the duplex is currently vacant.  I arranged to have a handyman rehab the unit while I was out of town the first week of this month.  After I returned, it turned out almost no work had been done.  It needs a couple of new windows, paint, carpet, some woodworking outside, and other repairs.  None of the work should be too crazy.  I already have a tenant set up to move into the unit.  I will be going with a Section 8 tenant this time.  I am losing money by the day, so I need this done ASAP.  Does anyone know anyone that can rehab this unit?  Thanks!

@Carrianne Mucho I just messaged you.

@Rick Snow, thanks for all your help. I talked to your hard money lender this week and I will hopefully get to meet with him in person next week. I am set up with Jacob, your wholesaler, so hopefully he can send me some deals. It sounds like I should find more wholesalers as well. I am very interested in another multifamily property. The prices of most duplexes on the market are too high to allow any cash flow. However, it looks like there are some better deals on 3-5 unit properties. I just found a triplex on the MLS for $260k that looks interesting. I also saw a 4plex for $325k that might be worthwhile. I am not sure if i can get financed on the 4plex, but it is worth investigating. My thinking is that if I can find a good enough deal, someone will finance it or lend me enough of a down payment to make it work.

@Carrianne Mucho. My duplex is in North Highlands, but I am really looking all over Sacramento county and even some of the neighboring counties.  It would be nice to focus on a more specific area, but I am really just trying to find good deals wherever they are.  I have listened to about half of the BP podcast so far, and I am hooked!  It's the podcast that really got me thinking about being a "real estate investor" instead of just thinking of myself as a small-time landlord.  

@Tekla DeMercado. I definitely want to check out the next meetup. Is yours through the REIA or some other organization?

@Al Williamson. I just subscribed to guildsummit. I really like the idea of maximizing the potential of my duplex. I may be keeping for a while. Currently, it barely makes a profit. It will be better once I can get rid of my PMI, but I am open to more ideas to run my business more efficiently. I will definitely check out your blog and articles. I would like to speed up this process is much as possible. My mom lives several thousand miles away and she just turned 65. I would really like to free myself up financially so I can visit her more often.

@Ryan Landis. My duplex barely makes a profit, but that's not a terrible thing. I bought it in January 2015 for $205k. Total rent is $1750. That is not exactly a stellar deal, so I am looking for better cash flow on my next rental. When I bought it, I had no idea what I was doing. All I knew is that I had to start with something. I figured that as long as I didn't lose money, I would be fine because I would gain experience. In that respect, I accomplished my goal with that property, but I need to do better on the next one. For my next rental, I think a multi-unit property would get me the best deal, maybe 3-4 units. If I can find a good deal for a flip, an SFR might work. It seems that SFR's in Sacramento just do not make good rentals, but they may work for flips.

Hi everyone!  I have actually posted a few things, but I never did a proper "New Member Introduction".  I live in Sacramento and I currently own one rental, a duplex.  My goal is to earn about $3k per month in "passive" income through rental properties within the next few years (my original goal was 5 years, but I want to speed that up to 3). That is enough to cover my bills. I do not earn a whole lot of money and only have about $25k saved.  However, I do have several people willing to come up with money for a down payment.  I would like to buy and hold and also flip to raise more capital.  Any advice is appreciated.  Thanks!  

@Derek Daun  I do not yet have the money to make cash deals, however, hard money is an option.  I just had a chat this week with a hard money lender who is interested in working with me.  

@Derek Daun   Thanks for the input.  My goal is to earn about $3k per month in passive income (from rentals) within the next 3-5 years.  This would be enough to pay my bills, essentially making me financially independent.  I estimate I will have to own about 20 front doors for this to be possible.  I own 2 so far.  To get all those front doors I will raise down payment money by making partnerships and hopefully doing flips.  I have not yet done a flip.  Once I reach my goal, I can buy and hold or flip as I wish.  That is pretty much my game plan.  

My goal for my very next deal is to find something that I can either flip for a profit or buy and hold and earn positive cash flow right away (or at least right after rehabbing).  Either way, I have to make money on the buy.  I will be investing with other people's money.  These are people that are very close to me, and I cannot afford to speculate.  I hope this answers your question.  

I live in Sacramento and I have about $50k (or possibly more) of other people's money to invest with. I have about $25k of my own money in the bank, but I would rather not touch it and keep it as reserves. I currently own one duplex. I am open to the possibility of more buy and hold properties, or flips. Unfortunately, I am having a lot of difficulty finding any deals worth buying. I have looked at about every single property on the MLS and Craigslist. I have also gone out driving around looking for properties. I just found a wholesaler last week. Hopefully, that is a step in the right direction. Where do I find deals? Are there any types of properties that I should be looking for? Any areas that I need to focus on? Any advice will be appreciated. Thanks.