All Forum Posts by: Andrew Fidler

Dave- I'm definitely seeing the "clumping" of tenants, section 8 paying their for housing (and providing utility vouchers in my case) we regularly sense there are more people staying at the house than are officially on the lease.

Does it bother me?

The house cost $25k (purchase, renovation, and new roof WITH sheathing), and gross's $8400 a year. We refinished the hardwood floors so there's not a whole lot that can be damaged.

I guess I just see it as a cost of doing business, keep an eye on the place, and enjoy the system for what it is. It has good points and bad ones...

Plan on them negotiating the rent rate with you. I asked $750 for a house and was negotiated down to $700...great since other houses are rented for $500!

The way I see it if HUD doesn't argue with the price, you left money on the table...

Kaye- Any progress on the house next door?

Do you own or rent the place, sounds like a move is in order...I invest in similar neighborhoods and live elsewhere...and back Mike's opinion of concealed carry. (though in Illinois you're prevented from that option)

I actually used my gun back in 2010 when I had an contractor get jumped by 10 guys at 2pm on a Thursday (not at 2 am on a Saturday which is the usual trend from crime in the area). I carry anytime I'm in the neighborhoods, had carried for years without incident. (Definitely had times I was glad I WAS carrying but those situations deflated themselves)

I come around the side of a house we were rehabbing and watch my guy get thrown down and pummeled by the ten...run up and scream "NO-NO-NO"...I could have been miming for all the good it did. Watch while a few of the ten pickup 2x4's and a hammer from the job site and move in on the employee...which is when I stepped off to the side and fired three shots into the ground. Suddenly big phalluses became very small and ran off. I presented my DL and carry permit to Toledo PD and was given back my firearm minutes later. The employee suffered a concussion, broken thumb and rib, and that was in less than 60 seconds of beating.

I ended up explaining the whole sitation to the crew (who came running when the shots went off) and called my wife and gave her the story to prep my lawyer should I get cuffed...BEFORE the cops arrived. They were stunned when the "shooter" was calmly waiting for them...and as I said above they were very reasonable since I was on a private jobsite and was fully licensed. Ended up being a domestic dispute where an ex called friends to beatup her ex husband. Testified in court to help put them away for 6 months.

Conclusion- walk softly and politely through your day but carry a big stick (or small pistol).

I have one in Toledo, Ohio, and two more in the works. The process was initiated in December, 2010 and really fell in our laps (friend of a tenant was referred, had a voucher ready to go, and we had a 3brdm house open and ready).

Now- I assume the holidays caused some of the delay, but we started paperwork about Dec 10...had them negotiate the rent down about Dec 15th, and schedule the inspection.

The inspection had one or two minor items (this is a 1920's era house, so had to install railings on the front and rear steps). The inspector can Fail, Re-inspect, or approve with minor comments. We got approved with minor comments.

Paperwork was approved around the 20th. NOW- rent was approved and tenant moved in and HUD tells me "Check is going to be processed, it's coming". By late January I was pestering them and early February I was frankly wondering if I was going to have to evict the government from a house. (I'd never have tolerated delays like that in a normal tenant...one of the foundations of Sect 8 are the same treatment for all groups)

Now- once we got into their system (direct deposit to a corporation's account, I provided everything to them but my blood type and tax returns). Money's been flowing in like clock work on the first of the month, ever since!

Anyway, it's almost been a year, HUD just conducted the annual inspection, a few minor things again, nothing of real concern.

In conclusion- we liked the interaction enough that we are moving two of our houses into the progrom. Demand? Holy S___! We posted pics and a price at 1pm and had a dozen apps by 5pm. Price is pretty moot to these folks because it's not their money. We asked our usual rent in the neighborhood and clearly should have asked for more.

Entitlement is a self-perpetuating cycle and in the neighborhood I invest, a way of life. I was present one summer day when a young neighbor of one of my units announced she was pregnant to my tenants...their response was "that's great honey, we will get with you later and show you where to apply for the money".

The thing is I don't see it ending anytime soon...we have a HUGE re-education and re-prioritization effort ahead of us if we try to stop pumping support into our poorer neighborhoods. If we do anything abrupt like suddenly discontinuing service we will most assuredly face class riots...IMHO

Not a problem, like most of real estate, the deal is in the eye of the beholder...

Hi Shannon,

I own a bunch of properties about a mile north of this one...and you were most wise to have walked away. The neighborhood is my nearset ghetto and one of the reasons I carry when managing.

Don't sell Toledo short just because of this one sale, I have yet to find a market where I can make as much rental profit on sturdy houses! Keep looking, fully agree with the advice to lay you eyes on what ever you buy.