All Forum Posts by: Frank Dean

I see. I'd also caution you against using 100% financing for a long term buy-and-hold property. 

Beyond being difficult to make the numbers work, it's just not a wise strategy IMO. It's also not going to scale as you'll quickly hit DTI limits even if you can get the numbers to work.

@Frank Dean Are you sure S8 rent is “much higher”? I only ask because you said you are new to this.

The S8 rents you see on the HUD website is gross eligibility. That's before factoring in utilities or each personal situation. If it says on the website they pay $1,500 for X number of bedrooms, they probably pay closer to $1,150 once they account for the utilities. Just something to be aware of.

@Frank Dean Why would S8 use our tax dollars to pay higher than market rents?

Which S8 "guru" program did you drink their kool-aid?

Many of these "gurus" claim you buy Class D properties and through the "miracle" of S8 rents - make them cashflow.

Rarely happens! Yet, through the magic of social media marketing, they imply it's so easy to do every time.

It's like paying someone for advice on "winning lottery numbers" just because they once won a scratch-off prize.

DM us if you'd like to discuss the reality of using S8:)

Hey Frank, I have S8 experience in Detroit but not Pittsburgh.

A word of caution... I would be careful about doing something in an effort to "make positive cash flow".

Section 8 has its pros but there are an equal number of drawbacks. Just search the forums here and you'll read a ton about the program.

I tell people it is a tool rather than a strategy. And most people don't understand that S8 rents can change, usually on an annual basis as tenants are reassessed.

How bad can it change? I just had one of my S8 tenants completely lose their entire voucher on their latest reassessment. They're now on the hook for the entire rental amount.

So again, I'd be careful of chasing this craze just to make the numbers work.