All Forum Posts by: Harvey Levin

It is an arbitrary number. I use it more to have a basic level of not having my name associated with the houses. Also, I look at each as its own "Mutual Fund" I do not look at each property every month but I do look at each portfolio (LLC). If 1 seems out of wack I dig deeper. yes, the umbrella offers a layer of protection in the event of a Lawsuit but the LLC may help prevent a bogus claim. Lawsuits even bogus eat a lot of time and money even if insurance pays the claim. I am also at the point where I am going to move everything into a Trust. More as an easier transfer of wealth at my death.

@Nicholas Alves @Nathan Gesner @Drew Sygit

This is a topic that gets asked often. I am not an attorney nor am I an Insurance Agent. I use 10 properties per LLC as an easy way to compare. Similar to a "fund". I also carry an Umbrella Policy. I have a client who is a well know Class Action Attorney. He has 7 properties in 1 LLC. When I asked he told me there is no Attorney who wants to seize property. Attorneys want to Settle with Insurance Companies. He also maintains an Umbrella policy. My largest client had 120 SFR. He put 10 in each LLC and carried a large Umbrella Policy. (He also carried zero property damage insurance as the cost was a lot more than what he felt his total claims could be in each year. He was correct as he never had any damages in over 10 years that he would have ever made a claim on.)

Both of these clients have a Net Worth exceeding 20 million.

One item I often see is that someone will create a single-member LLC in a different state than where the property is located. If the LLC is not registered in the state the property is located in the LLC and is not active in that state so all responsibility is personal. LLC unlike S Corp or C Corp is only state based. If you want your LLC to protect you it is very important that you act like a company in every way. Sign everything with your title, LOAN money with a Promissory Note to the LLC with market Interest, and pay the interest, hold annual Board Of Director Meetings are just some of the items to help set the LLC apart from personal.

Again, not an Attorney Nor an Insurance Agent just an investor over 40 years and  PM over 10.

@Gloria N Gear  Thanks for all the referrals!!! 

@Kent Depwe 

Hi, Sorry to make this confusing. The FMR includes the utility allowance. The amount for rent will be less the allowance. Then, there is an adjustment for the tenant's income and finally an adjustment for the area Fair Market Rent. Different Housing Authorities are offering incentives to Landlords currently. Indianapolis is offering to pay 110% of FMR. I do not invest nor manage in Muncie, so I am not aware if they are offering incentives

@Kristen L Garner  Thank you for mentioning us. We appreciate working with you.

@Jaron Walling   your comment about not affording to mow the grass or change a light bulb means you are not choosing tenants on Section 8 with Income. That is a tenant screening issue. 

Hi Tyler, I am curious how many Section 8 tenants you have had 1s hand knowledge of? I have almost 40 years of experience. The average tenancy is 3 to 5 years and then over 50% move into one of our other properties. Our attorneys tell us we have a significantly lower eviction rate than PM's in the same neighborhoods. The key is understanding how to properly screen and also how to manage. Now comparing a C class home with a B class of course the C class will have a higher repair factor but that is across the board no matter who the tenant is. C class renovations are of less quality than a B ( The cheap Lowes Commodes vs a decent American Standard for example) and in many Indy areas the C class homes we always a C class area and the original home was built cheaply. I have been a speaker for HUD out of the Washington DC office on Landlord issues with local housing authorities. At one symposium I was asked what is the difference between a Non Section 8 tenant and a Section 8 tenant. My answer was simple. "LUCK" if we are talking about a lower economic person all things being equal they come from the same tenant pool. As far as would you treat it nice if it was being paid for by the government.. yes, for many of these tenants this is the nicest home they have ever lived in and many keep the houses very nice. We just had a tenant move after living in the home since 2014. All we had to do was wipe down the walls and clean the carpet. Yes, cheap builder-grade carpet that after 8 years was still in good shape. Is this the exce[tion/ Of curse it is but I have lots of stories of how the tenants treat the home just like they own it. I do not see that very often in B-class rentals. I have more issues with prospective owners calling and saying they have a house they cant rent and want to use Section 8. When I ask where it is and why that cant rent it, I usually find it is either in a bad location or needs a lot of work. I also have clients that say why should I make the repairs. What do they expect for free? But yet the rent is paid in full every month so they expect the same as any other expects and deserves. Are they all fantastic tenants? No, but neither are all market tenants. Landlording is not a science, it is an experienced-based business. My almost 40 years of experience with Section 8 have proven that I have been very successful by renting to Section 8 tenants. In my personal residential portfolio, over 95 % of the C class units ( over 50) are Section 8. Currently, the rest started out as Section 8 but their income now exceeds the maximum limits. Treat the customer with respect, provide safe and desirable products, purchased at the right price and condition, provide quality management and anyone can be successful no matter what the product or market.

 Hi   we specialize in utilizing the Section 8 program in Indianapolis. I have been a landlord using section 8 since1985. In 2011 we started a PM company. It can be a great program but is also confusing. The rent amount you mentioned is not correct. The posted amounts include a landlord providing all utilites which we never reccomend. From what we are seeing a 60 to 70k 3 bed probably needs work or might be in a less desirable location. 3 to 4  years ago that price point was easy to find but current prices ( after repair) would exceed that amount. Send a DM  for more information. 

I have been a section 8 landlord in indy since 1985 and managerfor others since 2011 specializing in section 8.the most houses and doubles we have had with sec 8 is over 400 at 1 time.  Over 90% of my personal portfolio is c class with  sec 8 tenants.  It can be highly profitable but making quick repairs  is the number one way to stay profitable.  Without that tenats do not stay long term ( my definition of long term is 5 plus years)