All Forum Posts by: David Vaughn

Because the condition is better than I thought, and someone else was looking at the house as well and seemed very interested in it, too. Now I have learned a lot. 

UPDATE: My contractor went to look at it, and it's okay to go. However, I found out I had to clean up that messy house (lots of trash, like a hoarder's house). This is probably my bad: PInPoint says delivered vacant, as is. I assume as is means as is, no repair. I randomly asked: it will be cleaned up, right? The guy said: no, we said as is.

Can I still re-negotiate and get 5k down? We had a verbal agreement, and they sent me the contract, which I have not signed yet because of the walk-through. I am pretty sure they don't have a buyer higher than my price because I saw them just advertise it again at my price minus 5k. Will I be blocked in the future?

So my approach is --- who cares if they're upset? If they want your money then they can deal with your requests or not have you purchase homes from them. 

Also this emotional pressure is really common with high pressure sales environments, which is often the case with large wholesaling organizations. 

ALWAYS operate in your best interest, even if emotionally uncomfortable. :) 

@David Rosenthal
I have about 9 units rented with section 8 in Columbus. As the others mentioned you definitely need to screen tenants before you rent to them. Just because they have a pulse and a voucher doesn't mean they are a good fit. I think one of the positives not mentioned is that section 8 rents go up every year when they raise their budget (at least where I am). In Columbus with CMHA you can request once a year 1 rent increase. The nice thing is you can ask for as much as possible and section will tell you what they will pay. You can do this every year and max out rent without the tenant feeling the burden of rent going substantial amounts year over year. 

@Jeff Poupore@David Vaughn

Are you guys buying below market?

I do a lot in Detroit.

The quick good/bad:

- S8 tenants tend to be rougher on the property (but not always)

- Paperwork/inspections/etc. can be burdensome and tough to navigate (especially initially)

- People often think FMR rates are guarantee rental rates but that's not the case

- Usually the rent isn't 100% subsidized and a lot of people don't realize this

- S8 tenants tend to stay a lot longer than cash tenants

Overall, I'm neutral on the program. If the tenant makes sense, the rent is there, and it all works for the particular property, I'll go with S8.

But I'm not the type to turn down a well qualified cash paying tenant simply because I only want S8.

Looking for someone who's done a lot of section 8 BRRRR deals to share some insight. I mainly flip right now, but looking to build something for the long term with a partner. STL, Detroit, and Philly seem interesting and to have solid sec 8 numbers.

The good (besides the guarantee), the bad, and the ugly?  Give it to me straight please.  If you don't mind, include the size of portfolio and avg cash flow you look for in a deal.

Thanks so much.

Welcome aboard David!