All Forum Posts by: Kyle Shankin

I'm looking to buy and am going to be viewing a property that already has a tenant in it, and the tenant is being subsidized via section 8.  I don't have any experience or much knowledge about section 8. When I talked to my realtor about it, she sounded positive over the prospect of the government paying the rent. However, after reading this article on BP regarding section 8, I'm concerned over the possibility that the tenant would not be able to pay rent, even with the subsidy. 

So I'm asking you all for your experiences. Do you all think renting out to section 8 tenants is a good thing or a bad thing? 

Thank you @Sylvia B. That is also very insightful and I LOVE your story about the church, what an odd situation!!

Your point about local knowledge is well received and I'm glad you brought it up. I believe that all advice should be taken with the proverbial grain of salt, and it's the recipients job to apply the advice in a context that best fits their situation. I asked this question because I wanted to see what experiences other BP members have been through. However, I also asked the same question to my cousin, who works at a title agency local to me 🙂.

In any case, thanks again. I appreciate your insight and experience 😁.

Thanks @Tahra Wright, I appreciate the insight :D

Thanks Tahra, that makes sense and sounds like is good advice to make sure the deal is protected. It does, however, add another step. Which now leaves me wondering how investors who promise things like "fast and easy, no hassle" closings follow through. Perhaps it's just part of doing business that a certain percentage of deals aren't going to be able to fit that mold.

I take it a lawyer who specializes in real estate transactions is best to go through for this type of due diligence?

I'm going to start sourcing my own leads and making cash offers on houses, but I have a knowledge gap that I'm looking to fill.  What kind of deal-halting complications can arise when a deal has legal issues? I'm thinking specifically of divorces and inherited properties. When a couple is getting divorced, is the transaction of a sale any different than if the couple were happily married? When a parent passes away and their children are trying to get rid of the house, who has the final say in actually selling the house? What kind of paperwork is needed to make sure the sale is legitimate? 

Please feel free to chime in if there's another situation worth noting.

A phone call never hurts! Just dial em up and see if you can get an idea of what their situation is. If they're already prepped and will to sell retail then the deal's probably not for you.

Hey @Steven Sather, congrats on the upcoming deal!

I think it depends on where you are in the purchase-process. It couldn't hurt to ask though, especially if you're in your due-diligence phase. I'd be surprised if the seller offered to pay for 50k of repairs, but you might get some sort of discount. 

Be sure to run the numbers again though, and make sure that the added 50k expense makes this deal still worth it for you!

All good advice @Rick Howell, enjoy an upvote!

I specifically find disconnecting from devices before bed time to be beneficial and would also add the practice of reducing one's digital intake. I've never been much of a social media user, but I've completely cut out social media activity that isn't real estate-related. As a result I feel incredibly focused and much more calm because I'm not thinking about things that just cloud my head.

@Andrey Budu I'll offer some things to consider based strictly off my opinion. 

First, if you are relying solely on the Zillow zestimate to assess the value of this property, I wouldn't. Zillow is only accurate to a certain degree, and here's what it looks like for Essex County, NJ:

What I gather from this is that the actual value of the property has roughly a 38% chance of being within 5% of the Zestimate. With this table aside though, I would be skeptical of the value because it's reported as a single family home. Using zillow to find out recent MFH sales in that area would give you a better idea in my opinion.

Second, why do you need to pay someone for proof of funds? Is that service also financing you? It's VERY possible that I just don't understand what you're using the service for, but it seems backwards to me. If you don't have the money to buy this house or don't have a partnership/loan lined up, then I don't see how you could offer proof of funds without it being fake. Maybe take the specifics of the deal to whomever you'd use to get the funds and have them give you some sort of proof of funds.

 *Strokes beard, gives a hearty laugh and pounds a pint of Guinness* 

Indeed!

As I stare out my window at my own un-plowed driveway I'm battling the same thought right now. But I think Thomas S (and others with similar thoughts) are correct, it's all about your opportunity cost. If you want to do that kind of work that's fine, but it will take time away from finding other deals.