All Forum Posts by: Brian Kloft

I think a lot of the problems people have with failed inspections and such come from Landlords that don't like to maintain their properties. If you are a good landlord and fix things when there is a problem, like you would with any other tenant, then you won't have any problems. However I know there are a lot of slumlords out there that will only fix something when they are forced to. They don't like Sec 8 because they are forced to every year and they can't bully the tenant into just accepting it. 

The other group of Landlords that can't seem to handle Section 8 are those that are so tight on cash that they freak out if they go a month without rent between tenants. Since you often don't get the first month's rent until the second month, along with the second month's rent; although sometimes you get it half way thru the first month. Those Landlords that are so tight on money will chose whomever can come and give them cash now so that they can pay their bills tomorrow as they have no reserves to float it for 30 days when Sec 8 catches up with everything.

Of all the tenants that I have had on Sec 8 over the many years the only real problems I have had are with those tenants that game the system. It doesn't really affect me, other than as a tax payer. It just really bugs me when I have one of those tenants that are abusing the system and shouldn't actually be on Sec 8 and thus are taking a spot away from someone that really needs it to help get back on their feet. It is a small percentage, but it bugs me nonetheless. 

@Alecia Loveless  Just curious on what you have done?

Anyone on here very familiar with Ashland OR and or live or work there? We might have an opportunity there but are not as familiar with the inland cities of Oregon as we are the coastal towns. Our son will be going to SOU in the fall so we are a little familiar with it, just not as much as we would like and so we have some questions.

Quote from @Trace Adams:

Hi all,

I am currently house hunting for my first home in the Aurora, CO area and am interested in finding something with a finished basement that I could create a separate entrance for (assuming one doesn't already exist) and rent it out to tenants and make a dent in the mortgage payment given this high interest rate environment. However, I called the City of Aurora to ask about zoning codes and considerations for doing this, and they said renting out a basement is not allowed in Aurora. Is there a way around this or are my dreams dead because the govt, who wants to fix the housing crisis, will not let a first time homebuyer do something that is perhaps the #1 solution to making housing cheaper in a market like Denver? Thanks!

 When you talked to the city did you just say rent it out or did you specify long term rental? If you didn't specify, then the person you were talking to might have thought you were just talking about a short term rental / Air B&B.

Quote from @Theresa Harris:

Quote from @Brian Kloft:

It sounds like a lot of people responding have not tried to sell a house in the last 6 months. Two years ago you would have not paid buyer's closing costs. Deciding on taking the offer and paying the closing costs has little to do with your numbers but everything to do with the market. The market doesn't care about your numbers. The market is what the market is.  In this current market it is not uncommon for buyers to ask and need you to pay closing costs. There is a high percentage chance that those closing costs are actually going to buy down their interest rate. Perhaps on higher end homes it is different but it sounds like you are talking average Joe, blue collar, housing. While the market has picked up some in the last month or two it is still slow. I think @Russell Brazil is correct that you are not having a flood of buyers walking thru. If you want to move on to the next deal then take it and move on. If the Buyers are preapproved I would not be worried about them not being able to close. Since their lender has already talked to you talk to them more to find out how solid they are. It seems like good lenders are there to help make the deal happen. Another way to look at it is you agreed to $4k and they need $6k. If the house sits for another one to two months are you going to be out that $2k anyways? If so take that bird in the hand. Also it sounds like you agent is trying to tell you the same thing, without trying to tell you what to do.

For reference I sold one of my houses back in January. Showings were slow as we listed at probably the slowest time of all back in November. Our first real offer they wanted $10k off plus $10k in closing costs. We were not willing to do that. A month later we got an offer where they just wanted the $10k in closing costs and we took it. For reference this was a $375k house and we were trying to get top or near to market value for the house and not selling it at a discount. 

 It depends on your market. Where I am, things are selling quickly-especially at the lower price points.  In Jan, that wasn't the case, but come April they pick up.

True, but I am guessing based on him saying only 5 showing in his first 10 days means that he is not in one of those markets.

It sounds like a lot of people responding have not tried to sell a house in the last 6 months. Two years ago you would have not paid buyer's closing costs. Deciding on taking the offer and paying the closing costs has little to do with your numbers but everything to do with the market. The market doesn't care about your numbers. The market is what the market is.  In this current market it is not uncommon for buyers to ask and need you to pay closing costs. There is a high percentage chance that those closing costs are actually going to buy down their interest rate. Perhaps on higher end homes it is different but it sounds like you are talking average Joe, blue collar, housing. While the market has picked up some in the last month or two it is still slow. I think @Russell Brazil is correct that you are not having a flood of buyers walking thru. If you want to move on to the next deal then take it and move on. If the Buyers are preapproved I would not be worried about them not being able to close. Since their lender has already talked to you talk to them more to find out how solid they are. It seems like good lenders are there to help make the deal happen. Another way to look at it is you agreed to $4k and they need $6k. If the house sits for another one to two months are you going to be out that $2k anyways? If so take that bird in the hand. Also it sounds like you agent is trying to tell you the same thing, without trying to tell you what to do.

For reference I sold one of my houses back in January. Showings were slow as we listed at probably the slowest time of all back in November. Our first real offer they wanted $10k off plus $10k in closing costs. We were not willing to do that. A month later we got an offer where they just wanted the $10k in closing costs and we took it. For reference this was a $375k house and we were trying to get top or near to market value for the house and not selling it at a discount. 

First, hopefully you communicated with your Landlord in the beginning about the short payments and didn't just not pay as usual. That is the first thing to keep in good graces is communication. Second, if you don't think you owe as much as they are saying then simply ask for a ledger. They should be able to provide you with that. It will show everything that they have charged you and everything that you have paid. Have it go back to November, before things started changing. If you pay online you can probably go online and look at it yourself. That should be the simple way to resolve this. If you see something that you disagree with, or that is wrong then tell your Landlord, or ask for an explanation. Again, communication is key.

Am I missing something? I see the chart but it doesn't have Reno on it and you don't mention any numbers for Reno to compare with that chart.

Quote from @Lindsay Buchanan:

Hi @Sawyer Bullock!

My husband and I live in Truckee and currently invest in multi-families in Reno. Would love to connect, I am familiar with both Tahoe/Reno. 

I am happy to connect and share any information. 

Hi Lindsay, My wife and I currently have properties in Phoenix AZ and a couple of coastal towns in Oregon. We are starting to look at Reno as one of our next targets. We are looking for small multifamily properties. Right now we are trying to get more knowledgeable about Reno. It would be great to connect with you.