All Forum Posts by: Hai Le

Quote from @Erik Estrada:

Quote from @Hai Le:

Just curious to see, are there any DSCR lenders out there that offer 90-100% LTV Cash out refinances on a 2 unit, multi family property? Not sure if this is a thing or not!

 Hey Hai, 

I think you might be confused. Many DSCR lenders will lend up to 75-80% LTV on the new appraised value typically after 90 days of owning the property. Theoretically if you bought the home for $200,000, put $75,000 in Reno and the property appraises for $380,000, you should be able to pull out 100% of your initial cost at a 75 LTV on the new appraised value.

I know you can take out 100% of your initial cost in that case. I was just wondering if for example I owed 150k on a property that’s worth 250k if there’s any lenders that do 90-100% LTV loans that allow me to pull out $75,000-100,000 of equity. If that’s even a thing that’s not a VA loan 

Just curious to see, are there any DSCR lenders out there that offer 90-100% LTV Cash out refinances on a 2 unit, multi family property? Not sure if this is a thing or not!

Hello all! I just recently had a tenant move out with a security deposit of $1000. The unit required extensive cleaning due to a shedding dog they had, it also had damages to the bathroom door and door trim from what seemed to be the dogs nails digging into it. There was also burn holes in a couch that he had purchased and wanted to leave in the unit. I suspect there to have been smoking in the unit which is prohibited in the lease agreement.

What would be a proper way to address this and reasonable deduction to the security deposit for the extensive cleaning due to the excessive dog hair, damage to door and door frame and the high possibility of smoking that occurred in the unit?

Rental Property is located in Upstate NY in Oneida County.

I have a tenant who is currently scheduled to have their lease end at the end of February; they will have only occupied the unit for a year at the end of their lease.

I'm not looking to extend their lease and would like to have the unit vacant upon lease end. Do I have to give a tenant a written notice to vacate the unit upon lease end or is a text message fine? I'm located out of state so just wanted to see which is the easier/more convenient way to terminate the lease.

Hello guys, I'm getting into the Section 8 investing and just wanted some feedback on a property I'm looking to purchase out of state.

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!

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!

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! 

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!

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!

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