All Forum Posts by: Augustine Cherukunnel

Can you elaborate on this?

HOWEVER, I can (and do) put in a 60 day notice to change terms at the same time I sign their agreement to increase rent. (They require 60 days notice for rent increases.) The tenant is responsible for the increase, it is not prorated like the rest of the rent.

So if I submit a packet for a property and the max contractual rent is $2000, and my goal is 2250. I would submit the lease for $2000, with a 60 day notice to increase the rent to 2250 when submitting the packet? Housing will allow that?

@Arsen Atanasovski

Thanks! Don’t know if I feel like a guru just yet but here’s hoping I can get there one day.

@Travis B.

Thank you! That was my suspicion. It might still be worth exploring out of state, but I’d have the additional step of independently verifying fair market rents prior to the purchase vs relying on the hud tables.

Thanks for the great info!

I have a handful of properties that are local to me (Houston, Tx). All of them have a decent cash on cash return and I’ve always been selective of my purchases. Most of my properties have section 8 tenants and I can’t say I’ve run into any major issues. They tend to stay longer, they pay their portion timely & they don’t trash the house. I think that’s in part due to the rules of the program as well as proper tenant screening.

I’ve seen multiple Section 8 gurus on social media advertising their courses to buy properties in medium sized markets in less expensive states & get insane returns. Usually along the lines of 5-700ish net income per property with the properties costing less than $100k. In my most recent personal experience, the housing authority here didn’t pay the full amount the tenant qualified for based on her affordability worksheet for the zip code/tier the property is in. That number would’ve been around $3000/month. The housing agency did a market assessment and determined they’d pay a little above market rent. I was okay with that since I got the property at a good price and it still makes 3-400/month in cash flow.

That said, has anyone used any of these & do those agencies in smaller markets pay the full FMR as determined by HUD, or would they do a market assessment as well? I am open to trying it, but I don't want to commit to a property out of state and the hassles that come with that if the net income would only be $300 or so.

Thanks in advance

@Nathan Bigbee

Thanks, I was going to look into a short term rental in Corpus but it looks like the regulatory environment isn’t very friendly. Oh well…

I'd like to bump this for follow up. Any input on Rabbu from people who have tried them? @Steven Gray

@Collin H.

Considering Airbnb & VRBO didn’t exist during the last downturn, do you still the value of a property in that region would fall so dramatically?

@Alex J. I sent you a follow request and would love to discuss this in more detail. I have a couple of properties with section 8 & could never get anyone to explain to me the ins and outs of adjusting for market rent and such.

@Chris Davisson

At the risk of opening an old thread, intel seems to agree with you. Their new plant in Licking County could be a boon for RE investors. Any realtor recommendations for an out of state investor in the area?

I have a 3/2/2 single family home within 3 miles of the medical center. It currently has a tenant, but I'm definitely open to exploring the use of the house as a short term rental for traveling nurses/healthcare workers. 

I had it listed as an airbnb thinking it would provide a better alternative to a hotel for family members of patients seeking long term health, but that didn't pan out. I'm pretty open to alternatives as the market rental rates in that area haven't kept up with the rising costs of ownership.