All Forum Posts by: Kent Depwe

@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 incentive

 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. 

@Kent Depwe Indianapolis has a lot of Sec 8 opportunities if your stomach can handle it. I agree with @Tyler Lingle. We both invest and have properties in same neighborhoods. Those $60-70K properties will need extensive rehab, or it's D class. If not those same properties are $120-150K in C/B class, in 2022. 

Nothing wrong with Sec 8 and it's a great for the community. People struggle with housing and we need to fill that niche. Just be prepared for tenants that can't afford to mow the grass, or change light bulbs. 

Would you treat a rental nice if you had it paid for by the government? IMO Section 8 is only something to do if you support the cause, low income housing. Otherwise it is a short term cash flow play for long term asset depreciation and lots of turnover. 

Hi Kent,

I think Section8 is a great play if you have the patience to deal with a more challenging type of tenant. I manage property in Washington DC and nearly all of our tenants are Section8. Most tenants are tough on rental property but I would caution you to set aside some of the excess rents aside for reserves. This can go towards covering unexpected maintenance costs or damage to the property. Also keep in mind that it can be hard to collect from tenants that don’t always have the means to pay their own rent if and when things happen.

Very nice pick up! Im in indy but idk any PMs out that way.....however there is a facebook group for investors in muncie and anderson area.....you might be able to ask around in there.

I would always say leverage, it will become much harder to find a deal but well worth it one you see all the other benefits of having 5 houses get paid down by tenants, 5 houses to depreciate on taxes, 5 houses appreciating.  

Of course are the end of the day it depends on your goals and risk tolerance and as they say, deals are made not found.