All Forum Posts by: Briana Bean

We have some tenants that divorced, and one moved out. Their renewal is this June. I have let the tenant know that a new lease will need to be drawn up, and that he would need to meet our income requirements. He works in a non-essential industry and has picked up a temporary job. I don't think he's income will meet the requirements, and he's asking for us to base things on what he was and hopes to be making once things re-open. Typically, we would be strict to our policy, but these are new waters for us. What are your thoughts? 

@David Pere @Sam Haag 

• How did you begin the process of becoming a section 8 landlord? Did you buy the property with the intent of it being Section 8 or did a potential tenant approach you and you then went through the paperwork and became one? 

• Have you ever struggled with filling your section 8 house with a tenant that meets your screening qualifications?

• How does the rent $ money compare to the market's typical rent for that house? Do you find yourself receiving less? more?

• Has section 8 been a positive or negative experience for you? Would you do it again? 

• And lastly, is there anything you would like to add about section 8?

Thank you guys for any answers you have to give!

There was some other sort of tax that she had to pay -- essentially on the gains of the house, but it was a state tax. 

I had friend that lived in a house over 2 years in Montana, and they were taxed on their gains. I'm not sure how the LLC plays into it, but I know state to state this can vary period.

Is there anyone in the Springfield MO or surrounding areas that does section 8 rentals? I would like to connect and ask a few questions. Thanks.

Brace Bean

Investment Info:

Single-family residence buy & hold investment in Springfield.

Purchase price: $35,000
Sale price: $45,000

1st Real Estate Investment!

What made you interested in investing in this type of deal?

We were looking to make a small investment to get our feet wet, and when we ran the numbers, this one was it.

How did you find this deal and how did you negotiate it?

MLS, it was pretty cut and dry

How did you finance this deal?

Through a local credit union

What was the outcome?

The ROI was great! The tenants were good and lived there the full two years we had it. They always paid before rent was even due. Tenant screening works! Or at least it did in our case.

Lessons learned? Challenges?

We ended up selling this house, because of the concerns my husband had with the house itself. When we bought it, it looked great! But not long after that, my husband became a home inspector and saw some issues. In the long run, it wouldn't have been worth it to keep it. So we sold it after profiting from it for two years, and made a small profit on the sales while the market was hot.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Springfield.

Purchase price: $45,000

95K appraised (after rehab)
We originally bought this as a flip, but liked the ROI so much, we decided to keep it.

What made you interested in investing in this type of deal?

The price was right, and the remodel looked do-able. The house had good bones.

How did you find this deal and how did you negotiate it?

We found it on the MLS, surprisingly. There weren't many pictures, and you couldn't even tell it was a duplex. Our realtor hadn't even known about it.

How did you finance this deal?

A local credit union (in-house loan)

How did you add value to the deal?

My husband did a lot of the work himself and contracted out a few things. The rehab itself added a lot of value.

What was the outcome?

A success! It was a big project to tackle as a first rehab, but we learned a lot and plan to hang on to this one for a while.

Lessons learned? Challenges?

Because my husband did a lot of the work while maintaining his full-time W2 job, there were some difficulties with time. He had to sacrifice a lot of it, especially with the rehab on the first side. Once one side was done, it was pretty self-sufficient and time wasn't as big of a deal (although we were still pushing to meet our own deadlines) . In retrospect, we should've contracted out more. It ate into some of the profits we would've had, but we are happy with the overall results.

In our contract, we state that tenants are responsible for any damages they cause including ones out of negligence. We also go on to list different examples of negligence such as clogged drains due to improperly disposing of materials such as grease, sanitary napkins, ect AND changing furnace filters, batteries. Our current tenants have clogged the pipes once due to grease. We forgave that one. Now, they did not change the furnace filters resulting in an after hours HVAC call due to the furnace not working for being clogged. What is your thoughts on how to handle these types of situations. We have never had to force a tenant to pay for damages caused (thankfully), but how do you go about it? Or do you not because the problem is so small and not worth the future problems it could cause? I'm wondering if we should even right in that they are responsible for changing the filter, because more than likely they may do it wrong resulting in further damage. 

I've asked this before but never received a response from anyone that had done this. Has anyone quit their job to become their own contractor in flipping their buy and hold properties? We have a few rentals. My husband has experience in renovating and is also a licensed home inspector. He enjoys the work and would rather be doing it than his salary job. I know this doesn't work for everyone, but is there anyone out there that has done it? & if so, how did you overcome financing issues with the bank? 

Hey gang!

We have another unit we are getting ready to rent, and I was wanting to update our lease agreement after doing more research. 

With our last unit, we did have a small pest problem. Unit was rented pest free, but later on the tenant had issue with mice. It became a bigger issue than it should have. 

I was looking for examples of pest, mold, and severability clauses but not finding any. How do you guys put this in your lease agreement???

Much thanks for any responses! :)