All Forum Posts by: Mike De Lota

Thanks Nina, could you elaborate on reasons not to rent? I understand there's a certain stigma that comes with Section 8 tenants but would love to hear your experiences. Feel free to PM me. Thanks again!

Hello, I am considering accepting Section 8 voucher tenants for my SFH and small MF rentals in Travis County. After reading previous forum posts, I've come to find out Section 8 can be tenant or landlord "friendly" but this varies from market to market and even county to county. Has anyone had experience renting to Section 8 tenants in Travis County? My properties are in solid B class areas and have been well maintained and will be professionally property managed.

I like the idea of guaranteed rent checks, especially with such tumultuous and uncertain economic times and am not turned off by the idea that my properties have to be kept up to code and in good shape. Assuming the applicants are properly vetted and found to be qualified, what are your thoughts on renting to section 8 tenants? Pros vs cons? Can they be treated like any other tenant in that if they violate the lease agreement they can be evicted (assuming not due to a COVID-related hardship)? What's the process like for raising rent to market value year after year (any restrictions about this)?

Thanks in advance!

Per Elon Musk from the original press release in July: 

“We’re also very excited to announce that we’re going to be building our next gigafactory in Texas. It will be about five minutes from Austin (Bergstrom Inter)national Airport and 15 minutes from downtown Austin,” Musk said. “It’s right on the Colorado River, so there’s actually going to be a boardwalk where there’ll be a hiking and biking trail. It’s going to basically be an ecological paradise, birds in the trees, fish in the stream and they will be open to the public as well. So if anyone is interested in looking at a Giga Texas with engineering, production, whatever the case may be, please let us know."

Almost seems like an eco-tech playground. Regardless, exciting stuff and hoping we continue to feel the ripples of this in the real estate market and local economy especially those in SE Austin.

Source:

https://www.globest.com/2020/0...

@Jonathan Rivette

Good luck! The deals are definitely out there, you just have to keep analyzing and be ready to act on the ones you like.

@Jonathan Rivette, that’s the million dollar question. Sounds like you have a firm grip on running the numbers. This question gets asked semi-regularly in different ways and the answers above are spot on. Read this thread if you’ve not already done so: 

https://www.biggerpockets.com/...

Best of luck!

@John Underwood, sounds good. Thanks!

@Luke Carl Thanks for the breakdown, good pointers for me to know. Guess I won’t be quitting my W-2 job anytime soon!

@Ken Boone Appreciate the up to date experience you shared!

Thank you both!

Have lenders changed their tune on refis for STR properties? I've combed through the forums and it seems like 1-2 years ago most lenders still needed 2 years income history on tax returns. Other folks have posted that they've actually had success working with lenders on refis for STR without the income history, but depends on the market. Still others have suggested placing long term tenants for a period of time to show cash flow positive rental history.

I'm debating on using HELOC money to purchase an STR using BRRRR strategy but it doesn't make sense to do so if I won't be able to refi.

Sorry that this question gets asked semi-regularly, I just haven’t found any recent updates adapted to today’s markets. Thanks in advance!

@Jacob Pereira

Thanks for everyone's insights. My strategy is focused on buy and hold in SFH and small multi-family and I am definitely feeling the heat of this competitive market! As an Austin native it's mind boggling to see what some of these units are going for.

Thanks Neil! I'd love to hear more anecdotal evidence from you and other Austin MSA agents in the forum about what you're seeing with respect to demand, inventory, and if you think this momentum will continue into the Fall and Winter when historically, sales tend to slow down.