All Forum Posts by: Jake Minyen

Thank you to all that turned my fairly simple and straight forward questions into a political massacre. I'm not convinced half of you even read my OP. The only thing i've learned here is that some of y'all have way too much time on your hands. My questions were about certain markets and the specific need for affordable housing. Also, if dealing with the extra inspections and paperwork with the housing authority was worth it to receive majority (if not all) of the rent paid by government. Tenants will be screened thoroughly; properties will be inspected periodically. I know it won't always be perfect, but a market tenant can stop paying you and thrash your house at the same time. A S8 tenant can thrash your house but they will then be kicked off the program, so they should be highly incentivized not to. There is always risk in real estate. 

Thanks to those that gave insightful information without going nuclear on the political spectrum.

I am considering acquiring properties to be rented under the section 8 program. My thought is, buying between 50-90k livable (or less than 10k rehab) and being able to rent for 2% or at least close to it trumps the cashflow of typical market rentals since HUD establishes max payable amounts depending on number of bedrooms, and is usually higher than market rent rates.

My question(s) are, who has experience in this and what are some good markets to consider? I know it needs to be landlord friendly state but does anybody have specific markets that have performed well with section 8? Markets that have great need for affordable housing. What are some caveats of this? Don't bash me with the standard "they will trash your place". The potential tenants will be screened thoroughly just as I would with a standard market tenant. That is always going to be a risk.

Typically, tenants are only required to pay up to 30% of the rent while the gov pays the remainder. My thought is, as long as what the government pays covers the property expenses and provides some cashflow, the tenant portion is just a bonus.

Anybody with experience in this please share your opinion!

Yes, after speaking with them again and getting clarity, this is the case. I formed an LLC earlier this year and thought that was the way to go. From a loan standpoint just starting out, it appears it may not be. Since the business is brand new and they asked for all of my current W2 and tax records, I thought that this was going to be a personal loan because my business has no credibility yet. I was mistaking.

These are local banks that I have been getting approvals from. I have one I'm waiting to hear back on that will potentially give me a 30yr option but the other ones have said a max of 15 or 25 years depending on the bank. I will look into a broker and see what other options are available. Tom, by commercial loan do you mean a loan for a commercial property? The banks are aware of my intentions to buy residential property and to rent them out so i'm not sure why they would be classifying it as a commercial loan. 

Hello, I am just getting started with my real estate investing business. I have a couple of pre-approvals from lenders in my area (Oklahoma City, OK) but the max term they will give me is 25 years, some only offering 15 years at a 9.25% interest rate. In a recent webinar, David showed an example of a rental analysis and put the loan term for 30 years and said that's what we should be trying to get. Does anybody have a reference for a lender in my area that will do this? I am having a lot of trouble finding cash flowing properties in this market with these high rates. Eventually, I will be seeking properties that need rehab and I know there's much more room for growth and opportunity in doing that but unfortunately at this time I am unable to do that. I would prefer for my first rental property to be turn key or as close to it as possible. Thanks in advance for any guidance.