All Forum Posts by: Lynn Wong

Thanks Ben! Median price is high while median rent is so low in these markets, zip code 95757 is even worse in term of high home price but low rent. I was lucky to break even with 25% down for $590K.

First important thing is asking them to show you or upload their voucher and the calculation summary (in Sacramento) to make sure they can afford the unit according to section 8 calculation, it called "rent affordability worksheet". In Sacramento, they have this posted on their website, you or tenant can put in the asking rent and the calculation will let you know if it is affordable. My experience here in Sac is people looking for the place but their voucher is not yet ready, I had to turn down handful of tenants that were not ready but wanted to rent my place. 

Make sure to follow their inspection list, the inspector checked everything on that list, testing every single plug in my property, turn on every appliance, hot water.. very thorough. 

Once you passed inspection, tenant can move in the same day. But process takes a little long before you get your first payment (about 3 weeks for me). Not bad here in Sac though since everything is online from turning tenant request called RFTA to rent negotiation through email, landlord portal, direct deposit set up. It makes things faster and easier online than paperwork like the old day.

Good luck!

Thanks Ben, can you provide the data for Roseville and Elk Grove please! Thanks!

I prorated my tenant when she moved in March 19th 2024 and that will be prorated with section 8 as well since that day is on the payment contract . I haven’t received my first payment yet, But that’s what they told me. 

@Bob Stevens I totally agreed with all this through my first time experience. 

 Your PM should've got the rent agreement approved by section 8 before setting up the inspection and then signing the lease contract with tenant.  PM signed the lease without knowing how much housing will pay you? That is unlikely. 

I wouldn't trust your PM. They must be responsible for this mess.  You paid them to do their job.  I would find attorney if your PM did not give you any resolution. 

This is my first rental property and first time renting to Section 8 in Sacramento County.  The process is very straight forward.  I listed the property, tenant agreed to rent, I submitted the RFTA to housing with the rent amount, waiting for a week,  they emailed me and negotiated the rent, sent me the affordable worksheet showing the accepted rent, housing payment and tenant payment. I then agreed with the rent. Then they accepted, waiting about a week. Then they scheduled the inspection in a week. Then tenant signed the lease, paid the security deposit and prorated rent for the month, moved in on the same day that the inspection passed. Total about 2 weeks since we accepted the tenant. Tenant moved in on 3/19/24 while I was still waiting for their signed payment contract and I actually just docusigned the payment contract and uploaded our signed lease to the portal today. They even apologized that they had computer issues. Payment should be coming after all the party signed. 

Please update us how you handle this! 

@Sean McKee your plan sounds good. I want to get another property in Ohio but short on down payment, want to use HELOC for down payment then refinance cash out to pay off the HELOC in couple years when there is some equity in my two new homes and interest drops. People talk about using HELOC but I am not sure how to use it for number to work and don't get myself into the hole.

I was wondering the same thing. Here is my problem of using HELOC for down payment. I did some calculations and see my number doesn't make sense if using HELOC. Basically, it is the same as 100% finance with 2 payments. Thinking to use $50K HELOCwith 7.49% APR for down payment for $200K home. Monthly payment to HELOC interest only will be $312 added to mortgage whatever the amount would be (e.g. $1200 for 150k loan). The rent needs to be 1800-2000 to break it even ( including maintenance and PM). Am I calculating right?

Yes, I did, I had more interest tenants after paid subscription than on Zillow . I recommend it for a month a so, you can see qualified tenants better than the free one, and more people viewing your property because your listing is the first one.  You can cancel it after you got tenant. 

I paid for 1 month. The listing was boosted to the top. You can send message to prospective tenants. You can change your prescreening questions. You can see how many properties that the person looked at.  Honestly, before the paid subscription, lots of tenant messaged me for showing and submitted application as well. If they looked at your property but didn’t message you, they are not interested. Good luck!