All Forum Posts by: Brendan August

Sorry I don't have any insight into the NoVA Section 8 market but I know the approved rents in the District are extremely high but I do have a question that will hopefully help you out as well...

Does the DC Housing Authority do a market analysis on comparable rentals in the area before they agree to pay the amount listed on the website or are the rent amounts listed on the DC Housing Authority what investors are typically getting? 

I just purchased a 4 bedroom house in Columbia Heights and have been using the $4753 amount listed to run my numbers, should I expect less than this? 

I am currently under contract for a 4 bedroom 3 bath home in Columbia Heights that I plan to live in for a year with roommates and then look for HCVP voucher holders to rent the entire home in the 2nd year. When running my numbers is it safe to just use the approved HCVP rents for a 4 bedroom in that neighborhood or is that just the upper limit that the rent could be and I should expect to receive less?

The home is nice and has central AC, washer/dryer and decent finishes. I'm not sure if this has an impact on the HCVP rent or it is just the number of bedrooms.

Any advice or experiences people have had would be great. Thanks!

Sorry if this is a duplicate, I think I posted it in the wrong place the first time. 

I am currently under contract for a 4 bedroom 3 bath home in Columbia Heights that I plan to live in for a year with roommates and then look for HCVP voucher holders to rent the entire home in the 2nd year. When running my numbers is it safe to just use the approved HCVP rents for a 4 bedroom in that neighborhood or is that just the upper limit that the rent could be and I should expect to receive less? 

The home is nice and has central AC, washer/dryer and decent finishes. I'm not sure if this has an impact on the HCVP rent or it is just the number of bedrooms. 

Any advice or experiences people have had would be great. Thanks! 

@Christopher Freeman

thanks for sharing your solution to this problem. I am in the exact same boat and close on a property on Monday and need to provide a W-9 to section 8. Me and my 2 other co-owners were going to form a partnership and get and EIN and use that on the W-9 but it just seems like taxes in a partnership are a huge undertaken. Were you able to figure out a way to do this without having a management company in place? This sounds like a great workaround but unfortunately we are managing this one ourselves. 

Thanks!

@Ashish Acharya thanks for the response, yea that is what I figured. So on the W-9 for Line 1 we would use the name of the Partnership that is associated with the EIN (which is just our personal names listed out). 

If we wanted to go the route of just co-owners instead could we put 1 of our names on the W-9 with that individuals social security number instead and then the 1099 would be issued to that person and checks would be made out to them and deposited into our joint bank account. Then at tax time we all just file Schedule E's? I'm not sure how the information from the 1099 would be associated with any of the other 2 people in the co-ownership though. 

Thanks!

My partners and I were just given a W-9 by the organization that pays our tenants rent. We have a DBA and an EIN however we have not officially formed the Partnership and filed paperwork with the state (Maryland). We haven't decided if we were going to actually form the partnership officially or not since the taxes become so complicated. We were hoping that we could just be co-owners of the rental property (we are all on the title).

That being said, in either case we are unsure how we should fill out the W-9. Specifically what name should we put on Line 1? Can all of our names go on Line 1 and then we use the EIN number? In the eyes of IRS we are all associated with the EIN. 

We just don't have a legal business name to put on Line 1 and the organization will be writing checks to us so Line 1 would need to be one of our names to deposit the checks into our joint bank account. 

Any help with this would be so helpful. Thanks! 

@Nicholas Aiola This thread is incredible thank you for providing all this information. 

Myself and 2 partners just purchased a tenant occupied property with the rent being paid by a government organization. The organization is requesting a W-9 from us and we are having trouble figuring out the best way to fill it out. The whole process happened so quickly that we did not form an LLC so we cannot use the LLC name on Line 1.

We do have a DBA registered with the State and received an EIN from the IRS. We were planning on this being a General Partnership and have laid everything out in a Partnership Agreement however the more we dig into this the more difficult the taxes and bookkeeping look with this type of entity. We were thinking that we could just operate as co-owners with a joint bank account. Either way we decide to go we are still unsure what should go on Line 1 of the W-9. Can all 3 of us put our names on it and provide the EIN number? If we can do this then what would we pick as our entity type?

Any recommendations or help with this would be great we close on Monday and the organization has to pay us rent a few days later lol. Thanks!

@Justin Lanciault Thanks for taking a look at it. We are purchasing points to get the interest rate down so that's the $2885. The $995 administration fee is definitely high in my opinion. 

In terms of the MIP we were actually able to get a non-owner occupied mortgage with 15% down and we would just pay off the MIP at closing. I was shocked that they offered that as well. We went through SWBC. This isn't the final disclosure statement though we still may decide to just put down the full 20% and avoid MIP.

Thanks @Raymond Simms!

@Tim Jacob yea I thought them only taking 6 months property tax was strange as well. We'll see if that changes when we actually go to closing. The property is located NW of the park on N. Potomac Street. South of 40. The home looks great and the street seems safe as well. It's currently occupied by a government subsidized tenant until November so that was definitely built into the price, but we are thinking it will appraise around $200k. 

Thanks again @Russell Brazil! It is an investment property in Baltimore City near Patterson Park so those numbers would be low for us. Sorry I didn't provide more detail in my original post. 

For anybody else that needs help calculating these to run their number I found some resources that will help get you in the ballpark.

 MD Title Insurance Calculator

Baltimore City Recordation Tax