All Forum Posts by: Michael Campbell

Hello,

Just wondering if anyone is renting to Section 8 tenants in Montgomery County, PA or anywhere in the SEPA region.  I spoke to someone at the Montgomery County Housing Authority so I could better understand the process of renting to Section 8 and it seems fairly straight forward with potentially higher rents than market-rate.  

Just wanted to get some perspective from someone who is doing this because I'm currently considering marketing to Section 8 for my duplex in Bridgeport.  I understand the increased risks with Section 8, but it seems like the rent could potentially much higher for a Section 8 tenant so I want to consider it as an option.

Any thoughts or comments are appreciated.  

Donnell, I think your best best would be to give the public housing office a call and ask them how it works in Philadelphia and how long the process generally takes.

Luis,  great success story!  Sounds like you handled your unexpected issues very well and I think this shows the importance of relationships.  Sounds like you had a good relationship with your contractors and property manager.

One question for you - how did you determine the ARV initially? I have been analyzing multifamily deals intending to use the BRRR strategy and I'm never very confident on the ARV. With multifamily properties it seems that there are often not solid comparable properties. I'd like to hear about your experience with multifamily comps if you don't mind sharing.

I would definitely recommend checking out DIG.  

http://digonline.org/  

Hey Luis,

I've ran into similar issues when talking to hard money lenders. One option would be to partner with someone on a deal. Have you checked out any local REI meetings? What neighborhoods are you looking in?

Hello Jay,

I did something similar a little over a year ago.  I bought a live-in duplex in Bridgeport, PA that I'm planning to move out of in the next 2 months.  It was in livable condition when I bought it and just needed cosmetic updating.  I did most of the work myself to get my downstairs unit ready to rent and I still want to complete renovations on my upstairs unit (where I currently live) but I've decided to hire out most of this work.  It's been a great learning experience without a doubt but if I could do it again, there are a lot of things I would do differently.

Don't be too eager, as in don't buy something just to buy... be patient, run the numbers, be conservative with your estimates, make some offers and eventually you'll find a good deal. Make sure the numbers work now, don't assume that home prices or rents are going to increase. Be sure to factor in all potential costs.  Don't count on rents to go up or for the home to go up significantly in value - treat appreciation and rent increases as a bonus.  I recommend using the BiggerPockets rental property calculator and do some reading on how to estimate the different costs involved.

You need to run the numbers knowing that your PMI will be $400/month.

I recommend using the BP rental property calculator.

While PMI obviously adds to your monthly expenses, no one should simply disregard a deal because they would have to pay PMI. Take it into account, and if the deal still works for you, go for it.

@Account Closed

I have to say - it sounds like you went into this with a really good understanding of what it takes to successfully complete a flip.  It looks like you did your homework and things worked out for the most part.  The issues you mentioned don't sound nearly as bad as some other stories I've heard from first-time investors, and they are definitely fixable for your next project. Congratulations and keep it up!

Sounds like a relatively smooth project so far - hopefully everything continues to go smoothly with the sale of the home.  What are your general takeaways and what would you do differently for your next project?

 Thanks for the advice, Gail.  I'll be sure to let him know the potential costs associated with cleaning up his mess.