All Forum Posts by: Carini Rochester

In my (one time) experience with section 8 I put my emphasis on my perception of the applicant's personality, work ethic and credit score. I disagree with J Bock in that the payment won't change significantly unless their income changes significantly. And if that happens, they will be able to afford their new share of the rent. $950 income for the entire month seems quite low and probably justifies your concern. However, find out their story. Are they likely to get more hours or are they looking for another job? What's included in the rent? Will tenant still have to be responsible for utilities? My section 8 tenant qualified for a mortgage 3 years later and bought the house from me.

Quote from @Paul Cijunelis:

Thanks Paul! Yes I have done one cash-out refinance and it worked well. I currently own some properties I don't want. Wrong part of town. One is a four unit office use in a 200 year old house. The offices are difficult to rent and the building is . . . old. So I feel like I could redeploy the equity on better properties. Excellent point that you make!

I use DSCR more than conventional. The banker I use has gotten to know me. At my last closing he told me how easy it was to approve me. (Really, to approve the deal. Plenty of rent money to cover the PITI.) I have been getting loans that change interest rate every 5 years. All my rates will (I predict) go up at the 5 yr date. That's bad. Or is it? This will incentivize me to sell and buy a better, more expensive property (1031 exchange.) In round numbers, I bought a property for a little under 300k a few years ago. 60k down payment, 240k financed. After five yrs., my equity will be my down payment + mortgage paydown + appreciation, say, 60k + 45k + 75k = 180k. There will be realtor's fees and closing costs. I could take 150k and use it as a down payment on a 700k property. Sure, I could sell and scale up even if I had financed with a conventional, fixed rate mortgage. But I find the pressure to do so at about the five year mark helpful.

Section 8 inspections is why I quit trying for Section 8 tenants after only doing it once. I'm not sure yours is over zealous, maybe merely typical. Many on this site are worried about the Section 8 tenants, not me. I'm worried about the inspections. I think the house has to be selected with Section 8 in mind. Newer than the use of lead paint. Maintenance free exteriors. Durable, low maintenance interior finishes.

Great thoughts and insight. Thank you.

I recently paid Zillow $30 to keep my add nearer to the top of the search. An applicant told me that my photo's for one of my apartments looked worse than the apartment actually looks. So, I've got to pay more attention to taking better pictures, or hiring a photographer.

The last time I shopped two lenders, I picked one out signed the papers, then called the lender I decided against. That lender said, "I wish you would have told me. I could have . . . "

So, it might be worthwhile having conversations with both, explain why you are likely to go with the other lender, and see what better offer they each come up with.

I would enroll in an architectural college and start drawing my own.

Building plans are generally owned by their author/architect/engineer. They are not owned by the client who hires the architect/engineer. Building plans are 'instruments of service' not products. Google search this term. The client generally purchases the right to use the plan one time. Similarly, you cannot go into Barnes and Noble and buy books, scan them and welcome the world to view them, read them, download them from your "open source" website. 

Absolutely anytime said landlord wants to take on the additional risk.