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All Forum Posts by: Marco Anemone

Marco Anemone has started 3 posts and replied 49 times.

@John Morgan, unless your net worth is more than 1 million dollars. Then it becomes more and more likely.

Post: When to sell a bad rental

Marco AnemonePosted
  • Bolingbrook Illinois
  • Posts 50
  • Votes 33

@Joe Villeneuve. Nuggets of gold in every post. I really enjoy your insight Joe.

Post: Should I recast my mortgage loan?

Marco AnemonePosted
  • Bolingbrook Illinois
  • Posts 50
  • Votes 33

@Greg Scott

About the only other factor to consider is the tax write-off on the interest.

Post: Section 8 voucher utilities included

Marco AnemonePosted
  • Bolingbrook Illinois
  • Posts 50
  • Votes 33

Also, if the tenant is responsible for paying utilities, the utility allowance goes to the tenant for them to then pay for the utilities. Now whether or not they actually pay the utilities is a hit or miss. But so long as the account is in their name, and its not a government run utility (in my area water and refuse collection is provided by some municipalities) then they typically don't hold the landlord responsible for the tenants unpaid balance.

Post: Section 8 voucher utilities included

Marco AnemonePosted
  • Bolingbrook Illinois
  • Posts 50
  • Votes 33

@George Bell

Section 8 will determine a maximum amount for gross housing expenses that they will approve based on bedroom size and location of the rental unit. This is commonly referred to as a Payment Statement. Keep in mind that the gross housing expense includes the total for rent and utilities. The amount they allocate towards utilities will be dependent on the type of rental (apartment, single family house, etc), and bedroom size. The housing authority for your area should have both the Payment Standards and the utilities allowance sheet (it may be called something different in your area). So for instance if the payment standard for a 3 bedroom is $2000 and the tenant pays for utility, and the total cost for all utilities is $400, then the maximum the rent they will approve is $1600. If utilities are included in the rent then the maximum they will approve is $2000. Just keep in mind that the payment standard is the MAXIMUM. There are other factors so it doesn't mean you will automatically get the max.

Post: Section 8 Tenant Evictions

Marco AnemonePosted
  • Bolingbrook Illinois
  • Posts 50
  • Votes 33


You may not need a lawyer.... yet. You should have a HUD contract both you and an official with the public housing agency signed. Find it, read it. It will spell out what you can and can't do. But for the most part you can take actions in the same manner you would with a self pay/non-section 8 tenant (and always within the bounds of the law).

If this was a self pay tenant and they caused damage how would you handle it? Would you throw your hands up in the air and say oh well or would you go after them for payment? I'm not saying you will get it, but the question is still valid.

If they say no to a rent increase would you say, well okay that's fine, or would you say something like Regrettably I won't be able to continue to rent to you at the current amount and you'll need to vacate at the end of the lease?

Really anything that you would hold a self pay tenant to applies to section 8 tenants with very few exceptions. Again read your HUD contract, and the lease you have between you and the tenant for some guidance.

The tenant's case worker instructed the tenant that they don't have to start looking for a new place to live because you, the landlord, have not given them notice to vacate. Do that, making sure the amount of notice given at minimum complies with local laws, what is written in your lease, and what is in the HUD contract, if anything to that effect.

For the most part a section 8 tenant won't risk losing their voucher and aside from the damage they caused, an eviction will certainly create a risk. Knowing this should give you confidence, and you can use this to your advantage as leverage.

They may be reluctant to move but the odds are more likely than not that they will move without you going thru a formal eviction process. I would also notify the housing authority of the issues. Or at least use the threat of notifying as leverage to get them to cooperate and move out.

Post: Does the HELOC debt acceleration method actually work?

Marco AnemonePosted
  • Bolingbrook Illinois
  • Posts 50
  • Votes 33

@Jimmy Lieu. Here is a simple mathematical question you should ask yourself that may help you answer your own question.

If the entire monthly P&I mortgage payment is applied completely to the principal (effectively at 0% interest) would you be able pay off the loan in 5 to 7 years? I think not. So if 100% of the payment goes towards the principal and it still doesn't work, then I submit to you that using a HELOC won't either.

Example:

$300,000 loan at 7% interest over 30 years equals monthly P&I payments of $1,996 for 30 years.

If the lender said to you "hey we're going to apply the entire payment towards the principal and forgive the interest", it would still take you 12.5 year to pay it all down ($300,000÷$1,996=150.3 month or 12.52 years) . Not 5, or even 7 years.

Now, if you can find a HELOC that will pay you interest instead, well then maybe. But keep me posted if you do.

@Sean Linnehan, Chase Bank has great online features and functionality, andball account can be accessed at the same time from one user name and password

Post: Need a holding Corp. when just starting out?

Marco AnemonePosted
  • Bolingbrook Illinois
  • Posts 50
  • Votes 33

@Scott Trench, good reply to the OP. I will say however to point #1 you made, that an LLC is for asset protection; It is. However its to protect assets (primarily personal, but not necessarily limited to) beyond the asset(s) being held in the LLC. For instance a personal residence that may have lots of equity, savings account , retirement account, a business that is own by property owner, etc. And possibly even future earnings.

Post: Still doing 10% down loans and just got a 6.75! Share your rates?

Marco AnemonePosted
  • Bolingbrook Illinois
  • Posts 50
  • Votes 33

@Henry Lazerow, thanks for proving this info. Would you be able and willing to share the lenders contact information?