All Forum Posts by: Rod Hanks

@Jody Sperling

I would definitely rent to section 8 clients without question.

Pros

1. Rent paid on time

2. Rent usually above market

3. Tenants stay a long time

4. Annual inspections from housing

Cons

1. The kids can be hard on your property

2. Boyfriends can move in

3. Some will call you for everything

Overall Section 8 is great as long as you screen the tenants the exact same way you would screen any other tenant. Call previous landlords and visit where they currently stay.

Good Luck!!!

@Dan Inness

I think you already have your answer. It’s a marginal deal at best. If you could raise the rents or expect the value to increase over the next couple years then it might be worth pursuing. One thing that hurts new investors is when they don’t find deals that meet their criteria they make exceptions on the ones that are close. Those exceptions can hurt you big time. The property is new but you still can expect to incur some maintenance expenses. Since this is your first investment I would recommend you hold steadfast on the 1% unless the rents are under market and you have room to increase or you are getting the property under market value.

Good Luck!

@Bud Gaffney

Yes you can request a rent increase 60 days prior to the annual recertification.

@Eric Lee Nation

Hey Eric, Travelers is actually one of my goto companies for landlord insurance. The rates are competitive and the coverage is comprehensive. That’s a pretty good rate for the coverage you are getting on that property. Be careful about trying to save a couple dollars on your insurance polices because you will definitely regret it once you get a claimed denied by one of these unknown companies. Sometimes trying to save $50-$100 will cost you thousands in uncovered claims. Maybe look at raising your deductible to $5000 would give you the savings you are looking for.

@Lisa Caracciolo

Seems like a retail bad deal based on those numbers. I don’t see the rents supporting the expenses.

@Joe S.

Nah you are not being paranoid at all. 2 large indoor dogs can do some damage. If it’s 1 I would consider but 2 is a hard pass for me.

@Soung You

Section 8 is great but don’t think you can buy a junker house and just rent it for top dollar to a section 8 client. There are inspections that are very detailed. Also if you just do an average or below average rehab you will get a marginal tenant. I rehab my properties very nice and get great credit section 8 clients who take care of my properties for a long time.

Foremost is the leading market for mobile homes but I do have a couple other options that may be more competitive. Let me know if I can help.

Unfortunately rates fluctuate from time to time with all insurance companies. That’s why it’s imperative you have a good independent insurance agent on your team that can shop the rates for you every couple years. Let me know if I can help.

I recommend a special form replacement cost policy with at least 1 million in liability coverage. I would also suggest a loss of rents endorsement to cover rents during a period of a covered claim while the unit is undergoing repairs.