All Forum Posts by: David P.

@Ceril S. yes you screen the tenants through your normal process - including the income.  Always call back to 2nd and 3rd landlords as this is where you will receive the truth about personality, cleanliness, etc.

 I use "Smart Move" to screen tenants - this site allows for the tenant to pay for their own background and credit check.  When I review their application I check their credit score along with their employment record - if they have one.  The combination of all these things helps paint the picture.

One of the biggest thing is not to discriminate because the tenant is Section 8 (or any other protected class) stick to your screening criteria/process like all other candidates and you should be fine.  One plus is due to lack of Section 8 vouchers, the precipitant losing their voucher is a fear.  If the Section 8 tenant doesn't pay their portion of the rent or cause damage you the landlord can report them, server them notice and notify their case worker - after investigation, they can lose their voucher.  I am not sure if this is the same everywhere, but worth checking out!

Good luck and I wish you success!

I have a few Section 8 tenants in the North Denver metro area. Yes demand is up but so is the demand for housing. With less than a 6 week supply it is not only driving up prices for home purchases but also for rents.

When I leased my units, I was able to secure the two Section 8 tenants - with less than stellar jobs, but I must say I have been lucky! They both pay on or before the 1st of the month and I do inspections quarterly and they always keeping the place in pretty good shape. No complaints and when a small issues arises, I take care of it right away.

I am very hopeful that they both stay when I raise the rent upon lease renewals. (Several of my expenses have increased - this is not a greed play!) My rents are fair market value for the area - but I also provide a nicer unit in the area and keep the places maintained. In our area, Section 8 requires annual inspections - which I have passed with minor issues.

My advice is to ensure you screen any tenant to qualify to live in your property.   If you understand the risk then having Section 8 tenants can be a good/bad thing!

@Dane Fossee ,  I agree with @Ben Leybovich - the two items that standout for me is the insurance being high, and the management being low - a good figure is 10%.  Also, I didn't see anything in for trash or snow removal.  The Landscaping budget item may include the snow removal but should be indicated as such.  Now trash service is a questionable item in some communities but wanted to ensure you include this as well.  Additionally, depending on size of the building/units local code may require fire alarm systems requiring monthly monitoring service and a dedicated phone line.

On the flip side (income) is there an on-site laundry, storage locker/rooms for other income sources?  In areas with limited parking you may be able to charge addition fees for parking, pool/fitness access etc.  The utilities are something that maybe able to be sub-metered as well; but something to look at to increase your potential income for the property.

@Mindy Jensen yes sometimes it is difficult to make the Denver group too - but more because my schedule than the traffic.  I would be interested in a Longmont group as I am in between and would love to network with people from that area.  I don't think the Denver group sees too many people from Northern Colorado coming to these meetings.  I think having it a different day/week of the month would be great too!

Are you willing to lead the group?  If so, you may want to talk to @Anson Young , @Joshua Dorkin or @Brandon Turner to ensure that someone isn't already slated for that area and the requirements. 

No problem Travis always open to opportunities.  Starting this year, we are doing projects in Florida as well; maybe our paths will cross.  The Denver market is a bit harder to may money, so we have expanded into other states.  I don't mind the travel; the perks are good!

Good luck with your move and if you do get up here lets have coffee or a beer!

wow free help; wish you were here in Denver metro area!  Good luck in your new adventures - where in FL will you be?

@Zaahid Holloman @Paul Timmins provides great information to start!  Get a local mentor, attend local real estate investor meetings (yes some cost money) but well worth it.  Continue to use BiggerPockets as a tool, ask questions, and after you learn start answering questions; this is how you learn.  

The hardest part is taking the first step to doing your first one; but you have to learn and we tend to learn better by doing!  In this business you need to take action, network and don't procrastinate - just DO!

Welcome to BiggerPockets and I wish you success! 

Wow @Anson Young great job!

@Carolyn L. you may want to try your REIA groups as well. Some are free and others charge an annual fee, but you have access to other investors locally that love to share the good (and bad) contractors. Additionally, some of these groups have membership into discount programs and rebate programs such as the Home Depot Pro programs which provides a 2% rebate twice a year which can add up to more than the cost of membership.

Don't get me wrong, BP has some great members and can provide recommendations, but you have to utilize as many resources as possible.  Also, you may want to try posting one of the other forum category:  http://www.biggerpockets.com/forums/categories

I would suggest the "Real Estate Professionals" under "Contractors"  go to: http://www.biggerpockets.com/forums/24-contractors

Good luck,

@Jason Rodriguez, I would consult an attorney about this.  @Scott Smith maybe able to help you through this as well - even though you are not in Texas! Listen to the latest podcast Show 109 as well - great stuff!