All Forum Posts by: Nelson Badillo

Quote from @Greg Scott:

You can ask for whatever you want for rent.  It is still a free market. 

If you are too high, market rate customers will ignore you.  Someone with a voucher may still want to lease your unit even if the rates are above market because they are not paying.  The agency, of course, is trying to maximize its resources, so would love to have you charge less rent.

If your focus was primarily on gaining excess rent, keep in mind that there is a reason many landlords will not take vouchers.

 Thank you very much for the answer and information! Curious, what are the reasons they do not take vouchers? I am new to this so any insight would be appreciated. There seems to be a waiting list in the area as well so I believe the demand is there. I was more so wondering if aiming for the SAFMR would be allowed or not. 

I recently just purchased a duplex and plan to rent out one side for section 8/VA VASH program. One thing that enticed me was the potential for higher rents by honing in on the SAFMR and the zipcodes. However, after collecting more information from PHA they stated I should aim to rent the unit at what other units nearby are renting out for and NOT go as high as the SAFMR states you are allowed to go. Is that accurate? Am I not allowed to use the SAFMR rate and MUST use the local comps instead? Does anybody have experience with this?

@Tim DelaneySent you a dm

Quote from @Tim Delaney:

Quote from @Nelson Badillo:

Quote from @Tim Delaney:

In my area the agencies that manage the vouchers won’t do an inspection until you have signed a lease with the tenant. The biggest thing I have encountered in numerous inspections is chipped or flaking paint in pre-1978 homes that have children living in them. The concern is possible lead based paint. So we often have to remediate this and touch paint. It’s not as bad or expensive as it sounds. They are also looking for code issues and other hazards which hopefully you are compliant with no matter what.

 Thank you for the response! I more so meant if there are people you could hire to do a pre-inspection to ensure you pass on the first go! I hear if you fail it could take weeks for them to come back out so I just wanted to better prepare for that initial inspection and what to expect and also, any issues before then. 

 I'm sure there are people you can hire, but like home inspectors I'm sure none of them will give you any type of guarantee. The inspection will also vary depending on whether there are kids in the house or not - they don't care about a couple small flaking paint spots if there are not children. That's why I was just pointing out the things that often fail. Make sure you have smoke and CO detectors in appropriate places, GFCI outlets near water, functioning mechanicals, make sure everything is in good condition and you shouldn't have a problem. Even if you fail the first time (pretty much every inspection I've had the person finds something to flag) they don't cut off payment until they have come back out a second time. Hope this helps.

 It does! Thank you. 

Quote from @Tim Delaney:

In my area the agencies that manage the vouchers won’t do an inspection until you have signed a lease with the tenant. The biggest thing I have encountered in numerous inspections is chipped or flaking paint in pre-1978 homes that have children living in them. The concern is possible lead based paint. So we often have to remediate this and touch paint. It’s not as bad or expensive as it sounds. They are also looking for code issues and other hazards which hopefully you are compliant with no matter what.

 Thank you for the response! I more so meant if there are people you could hire to do a pre-inspection to ensure you pass on the first go! I hear if you fail it could take weeks for them to come back out so I just wanted to better prepare for that initial inspection and what to expect and also, any issues before then. 

Hello,

I’m located in Central Florida and currently house-hacking a new duplex. I’m looking to participate in the Housing Choice Voucher Program and would greatly appreciate any resources or connections to professionals who conduct the required inspections. I’d like to have someone review the property and help identify specific areas that may need to be brought up to standard before I proceed with landlord registration for the program.

Additionally, I’d welcome any advice, suggestions, or insights from those with experience in this process. Your guidance would be invaluable as I navigate this opportunity.

Thank you in advance!

Best regards,

Nelson 

Quote from @Adam Bartomeo:

@Nelson Badillo I had to start over a few years ago due to a divorce. I had to start all over after it was over. I still have yet to acquire as many properties as I had before the divorce but what took me 5 years before has only taken me 2 years this time around. Thank you for your service! I was active-duty Army for 3 years and Army National Guard for another 3 years.

My understanding is that in order for you to buy a multifamily with a VA or FHA loan the revenue from property has to cover all expenses without your assistance. This makes it a little difficult to get a VA loan with multifamily. I believe that the easiest way to move forward is to buy a SFH and get a roommate or 2. Also, you can only have one VA loan at a time, so, if you use it this time you cannot use it again until the loan is paid off.

Thank YOU for your service as well! 

I think you had some great talking points and appreciate the insight about SFH.

I did want to clarify a couple things, I don’t think the revenue from the property has to cover ALL expenses but the revenue does go towards your “income” therefore giving you the ability to qualify. But I could be wrong on this and will have to double check that. 

The second thing I wanted to address was the misconception that you can only have one Va loan at a time. You can have more than one. I currently have two VA loans on two separate SFH that I own. I’m currently selling them to restore my entitlement to buy the multifamily. You get a set amount for your entitlement (the amount is based off of where the property is located) and as long as you don’t go over that amount, you can technically get more than one VA loan. 

I am currently going through a tough time and having to start my real estate journey all over again (Previously had a couple of single family home rentals) after some changes in life. 

With that said, I am considering jumping into a house hack using my VA Loan and then repeating the process every 1-2 years until I can accumulate enough properties to help supplement retiring one day.

I am doing research on the climate of things right now in the market but the reality is I need a new place to live and house hacking seems like the best way to invest my money and lower my monthly overhead costs so I can save money. 

My question is, what is the best approach to house hack these days? Am I better suited getting into a multi-family or a single family home and look at potentially adding value somehow? I value my privacy so not crazy about renting out rooms, but I will if that is what makes most sense in todays market. I have about $50k in liquid cash and again, plan to leverage my VA loan and I have my full entitlement for it.

Any other advice in general would also be greatly appreciated. Thank you in advance for your help and insight.