All Forum Posts by: David Lemont

Hi Linda 

Thank you for your reply. There was no previous landlord. I purchased the property and it was listed for rent. The lease that was signed was at the end of September. No deposits have been received at all. Not December or January deposits. The Housing Authority has not been helpful at all. Only delays, runaround, and no money as of now. 

Hello, 

I am an out-of-state investor and have a rental in Bessemer, AL that is currently rented out to a Section 8 tenant. The tenant was placed on September 25th but the Birmingham Housing Authority didn’t allow the tenant to move in until November 30th. All kinds of delays with inspections and whatever else. 
Now that the tenant is moved in I still haven’t received a deposit from Section 8. So the property sat vacant for October and most of November. I am owed December’s Section 8 deposit and January’s deposit has not been paid yet. The tenant was supposed to be moved in October 1st and I still haven’t received the full rent payment and we’re in January, which is the 4th month now. I keep getting the runaround by the Housing Authority when I call them. Has anyone else run into this? I had no idea I would have this type of experience when I decided to invest here. Is it time to pursue this in court? Any advice is appreciated. Thank you! 

Thank you everyone for your input! 
So my wife and I went to apply for a 30 year fixed rate conventional on a new primary residence, with the intention of turning our current primary residence into an investment property. Our lender came back and said our debt ratio is way too high at .77 (the target is around .45). We have virtually no credit card debt, our vehicles are paid off, etc. We have 2 other investment properties but we started renting them out less than 2 years ago. The lender said they want to see 2 years of rental income on our tax returns before they can count the cashflow we’re getting from them. We talked to another lender and they are saying a similar thing. Is there any way to find a lender that will help us so that we can keep our current primary residence and turn it into an investment property?

Hello,

My wife and I are wanting to purchase a new primary residence here in Denver but instead of selling our house we’d like to turn our current primary residence into an investment property. We have a low interest rate and a relatively small balance on our home now and we’d hate to let go of that. 

Projected monthly cashflow for the investment property should be $1858 (we have a super low mortgage payment and rents have gone way up here).

Moving into a new primary residence is going to bring us a mortgage payment of about $1500 more than what we’re used to paying on our current home. The risk here is we are relying on rents to stay the same (at minimum) and for our tenants to pay on time each month or else we can’t afford to pay the mortgage on the new home. 

Is this too risky? Would it be better to just sell and move all the equity into a new purchase and not have to rely on cashflow from an investment property to make the payments on the new property? 

Any insight is appreciated! 

David 

Thank you for your reply. 

I agree that the SFH is a better option. The problem we've run into is our price-point is about $350K and it's hard to find a pool home at that price. With non-pool homes, it's going to be hard to find occupancy to short-term rent.

We did find a SFH with a pool at a great price but we found flood insurance was way higher than what we anticipated. We decided to start looking at condos because flood insurance could be included in the HOA costs.

If SFH is the only option, is there anything within the Cape Coral / Ft Myers area at our price-point that we could purchase and have a decent return on? We have about $135K cash to work with for down-payment, closing costs, and reserves.

Thank you all for your help! 

David 

I’m trying to find a condo to start short term renting in the Cape Coral / Fort Myers area but the problem I’m running into is all the condos I’ve seen have a 30-Day minimum stay requirement. Does anyone know of any condo associations that are doing 7-day minimum stay? 

Thanks for your help!

David