All Forum Posts by: Hai Le

4BR 1Bath SFH, Mortgage payment is $917.37/M-$955.12 for a 30YR Fixed Rate at 7.13%, 80% LTV I am putting down $23,800. Looking to structure the deal with concession's to come as little out of pocket as possible so I have different offers in mind, but the payment is between the ranges.

I figure another 20% for Property Management, Vacancy, Maintenance which totals to $1,100.84/M-$1,146.14/M.

Section 8 Payment Schedule for the 4BR in the location is $1,670/M & the County Housing has a payment schedule of $1,832/M; so net cashflow would be $523.86-569.16/M at $1670/M and $685.86-731.16/M

Property is turnkey is needs just a cleaning for tenant ready. Just wanted thoughts and opinions on this property & deal. It is in a good neighborhood and on a slab so little structural issues to worry about. All big ticket stuff are taken care of & newly replaced.

Thank you for your feedback!

0 Votes

Quote from @Danny Gonzalez:

Hey Hai,

That's awesome that you want to start investing out of state. I own a PM company in Birmingham and we help a lot of OOS investors with their Section 8 properties. Right now, we manage over 150+ units that are on the Section 8 program so we're very familiar with it.

This investment strategy definitely has it's pros and cons. Here are a few:

Pros:
-Reliable rent paid every month

-Stable tenants that typically stay in the unit for a long time

-Purchase prices are typically lower so easier barrier to entry

Cons:
-Getting the files onboarded and processed is very tedious. Can take up to 3 months to go from application to lease.

-There's a chance that the tenants are rough on the properties. When they do move out, there's typically higher turnover costs.

-Typically they're older homes so maintenance is higher than the average property.

Awesome, thanks for the insight!

0 Votes

Quote from @Marc Winter:

First, are the current unsubsidized tenants paying properly? Are you 'happy' with them? If so, send proper notice to raise rent closer to the fair market.

Other than that, I'd wait until you have a vacancy rather than 'forcing' one to facilitate a move into Section 8 tenancy.

Good luck. Keep investing and moving forward!

Thank you for the insight. Noted and will continue with a proper notice of an increase in rent. Any additional insight on the process, advice on section 8 investing is much appreciated!

0 Votes

Good morning, I currently have a duplex property that I am in the process of switching to Section 8 Tennats.

I currently have two long term tenants that are month to month, currently collecting $1000/m each. FMR for Section 8 is $1396 in my area for the BR count, I've already contacted the housing authority and have my units listed on the section 8 board. To my understanding the process is adding my units to a board, waiting for the section 8 representative to contact me when there's an interested tenant, have an inspection done, screen tenant and have paperwork done correct?

Should I send a notice out to my current tenants that their rent would be raised to $1400/m effective Nov/Dec 1st and if they can’t do it that they would need to leave by then?

Looking for some insight and if I could connect with a current Section 8 Investor directly that’d be amazing!

0 Votes

Hello all! I currently own two rentals in upstate NY and I've recently moved to FL. I've got a decent amount of money that I want to start investing into section 8 rentals in Florida/Out of state doing DSCR loans. Not sure where to start but if there's any experienced section 8 property owners that could I could connect with/get some advice from that'd be appreciated!

4 Votes

Quote from @Kevin Sobilo:

Quote from @Hai Le:

Quote from @Kevin Sobilo:

@Hai Le, if the rate is flat why break it out separately? Just include it in the rent.

It seemed easier to advertise a $1300/m 1BR and list that utilities are a flat totaling $100/m than having it listed for $1400/m

That doesn't seem easier. I think you just want the unit to appear cheaper when people are filtering through listings.

I think it would be OK to advertise it that way if you like, BUT in the lease I would write it up as $1400 rent with those utilities included.

Got it. Could always try both ways. Just wanted to see if it’s a legal thing to do with charging a flat rate for utilities

0 Votes

Upstate New York, New York

Quote from @Kevin Sobilo:

@Hai Le, if the rate is flat why break it out separately? Just include it in the rent.

It seemed easier to advertise a $1300/m 1BR and list that utilities are a flat totaling $100/m than having it listed for $1400/m

0 Votes

Upstate New York, New York

Is it legal in Oneida County in Upstate NY to charge tenants a flat rate for utilities? Example $1300/m for rent + $50/m - water $50/m for gas/eletric

1 Vote

Upstate New York, New York

Hello, I am planning on purchase two triplexes that have a single water meter for each property. I understand the cost of having to separate meters and purchasing additional water heaters and such will be hefty. Currently landlord pays for all utilities, is a system/product/device that can be installed to the water meter that tracks the usage of water through each unit so I would be able to bill the tenants separately?

1 Vote

80% LTV, not familiar with the term PPP, it is a tri-plex. I'll shoot you a message and we can connect!

0 Votes

All Forum Posts by: Hai Le

Hai Le has started 19 posts and replied 32 times.

Post: Section 8 Property Purchase Opinion

Post: Section 8 Investing

Post: Starting out Section 8

Post: Starting out Section 8

Post: Section 8 Investing

Post: Charging flat rate for utilities

Post: Charging flat rate for utilities

Post: Charging flat rate for utilities

Post: Water Meter Usage Tracking

Post: Center Street Lending