All Forum Posts by: Johan Hultman

Well. When my PM went over for the tenant to sign a new contract he found out that she had moved weeks earlier. So nothing happend with sec 8. I decided to put it on the market instead of going through sec 8.

Sorry I could't provide a more informative answer.

Hi BP!

I'm looking to cash out refinance a property in Indianapolis. The SFH would probably appraise at $60k which means the loan amount would be around 0.75x$60k=$45k.

I only find lenders that do min loan $75k+ which means properties at $100k+.

I understand that in many areas in the US a min loan of $75k will get you very far but my sweet spot for investing in Indy is properties in the $50-80k range. Meaning these loans don't work for me. I need to find a lender who is willing to do lower amounts.

Looking forward to hear from you all!

Hey there,

I'm an investor from Norway who's been investing in Indianapolis for almost 2 years. It took some time but i've finally received my ITIN and should now be eligible to acquire a mortgage. The tricky part is finding banks or other lenders who are interested in dealing with foreign investors.

My Indiana LLC currently owns one SFH outright and shares in 4 other properties. I'm looking for a lender who will either let me refinance the SFH or let me get a mortgage in order to buy another investment property. One that does both would obviously be the best.

Does anyone have any suggestions or ideas?

That's right, I need to make money on the property.

It seems like some people here mean that Sec 8 will be obliged to pop my rent to "fair market rent" if I ask for a raise. That they cannot bully and use me to save their own money.

I need to know for sure that this is the case tho, because I definately see your point and that gamble scares me.

Even if you are 10 years behind in rent corrections?

From the information you and the others are giving me it sounds like Section 8 will be obliged to give me a raise? I mean kind of a "rent correction" so that I end up at fair market rent? I'm pleased to hear that they have guidelines and don't simply decide from case to case.

Given the information am I correct feeling pretty confident about getting a good increase in rent if I ask for it?

Nice! That's the kind of info I need. Where would I start the search?

Found something on google saying the fair market rent for my 3 bedroom in Lawrence, Indiana would be $932.. Is that for real?

Thanks @Brian Ploszay

The thing is that Sec 8 wants me to sign for a new year before asking for a raise. This way sec 8 will have all the power and I will basically just have to accept whatever rent increase they think is reasonable. Could be anything as far as I know... So It's gonna be a gamble if I decide to sign for a new one year and let sec 8 decide what the rent should be.

In this case the tenant pays only $55 per month. So Sec 8 pays $470 per month.

Hey BP,

Background:

I bought a property a few months ago in Indianapolis. The property has a section 8 tentant with a contract ending this summer. The tenant is a lady who has lived in the property for 25+ years, happy where she is and will probably stay there until she moves on to the next world. 

The problem is: The rent is at $525, which is way below all comps. My PM suggests $725-750 and this is the number I used when doing the numbers buying the property (understand that my numbers look terrible with the current rent) . The rent has not been rasied for the last 10 years by the precious landlord for some reason.

Now that the contract is coming to an end (it has actually already ended), section 8 tells my PM that they want me to sign for a new year before starting negotiations for a rent raise. To me this sounds crazy, I am risking signing a new one year contract ending up at $550 rent for the next year.

To me I have a few options and I hope that I could get some good feedback here.

1. Sign a new one year contract and hope for the best. The tenant is a very cool old lady and I would proably not have to deal with vacancy for many years to come. I would ask for a raise now, and then rehab for $5-6k (Paint & Floors) the coming year and ask for another raise because of the improvements next summer (Hoping to end up at $725-750 next fall). My PM also informs me that I can only ask for a rent raise ONCE per year.

2. Walk away from Section 8 and start fresh with a $725-750 rent. Hoping for a good tenant (In this case I would probably have to spend $5-6k at a turnover) and deal with vacancy in the meantime.

Any feedback is greatly appreciated.

Regards,

Johan

Hei fra Norge.

Imponert om du greier å forcea 130k appreciation gjennom å pusse opp for 10k. 

Er stort sett umulig å finne deals i Norge, har derfor begynnt å investere i USA. Det er noe du også burde se på, ikke så komplisert som det kanskje virker.