All Forum Posts by: Nick Hundertmark

@James York

For all reasons cited in this thread, section 8 is not ideal for “prime” rentals that can attract reliable tenants. I’ve had success with section 8 tenants in the C/D multi family properties. For example, we have a 5 unit with several studio-sized apartments that are not desirable for most “stable” renters. We’ve done well renting these units through sx8 which pays about $200/mo more than we’d expect from regular tenant. Because the process for sx8 renters is difficult (eg not many landlords want to rent to them, low inventory, voucher waitlist) they tend to stay in place. In my case with these studios, they tend to attract grifters. Even if the sx8 person wants to move, they have to weigh that against the challenges they will face transferring their voucher elsewhere.

Also, less square footage for a tenant to mess up = less turnover cost. In my experience, section 8 is ideal for hard to lease smaller units.

I apologize for the bad formatting. The original post was blocked into paragraphs.

Please read entire scenario before responding. One of my rentals is a semi-detached home where I own one side. It’s rented to a good tenant who pays on time and keeps the place clean. The house next door was recently sold to an owner occupant who has several large dogs. My tenant has brought to my attention that there’s a full blown flea infestation occurring in the house. It’s unlikely that the fleas came from her. She hasn’t recently bought used furniture or clothing and she doesn’t interact with or own any pets. We are assuming right now that the fleas are coming from the neighbor, as they share a back yard. I’m going to find out for sure by talking with the neighbor, but right now let’s assume that’s where the fleas are coming from. If that’s the case, who is responsible? My lease says that the tenant is responsible for flea and pests control related costs that occur during her occupancy. I don’t want to screw her over though because she’s a good person. Even if I were to pay or help cover the cost of remediation in the home, it would likely re-occur due to source being the neighbor. We could treat the house and put a fence in the backyard to keep the dog off the grass. Even that may result in a reoccurrence as fleas can probably migrate that short distance or possibly find a way through the walls. What would you do? Is the neighbor liable for any of this? Thanks you, Nick

Thanks for the input everyone. Sounds like it might not be worth the effort and time. Looks like I'll keep giving referrals to agents 😆

So the title may seem a little misleading and I'm sure your first answer will be "absolutely not". But hear me out. On the side, I've built a little wholesale business and have a handful of buyers that I work well with. It's a fun side hustle as I like to sift through off market deals and build rapport with sellers. I'll often come across a property that makes sense for the retail market, and I always refer that seller to an agent that I know and trust. If I were a broker or an agent then I could have a pretty solid stream of leads being fed from the wholesale business. I do not want to be an agent, though. This leads me to my question: can I "rent" a broker's license and employ an agent to sell under my rented broker license? There are a few brokers that I know well who primarily hold a license so they can manage properties (PA law requires you to be an agent under a broker to professionally manage real estate). If I worked a deal with one of these brokers so that I acted under their license (not as an agent) and employed an agent or two for listing properties, then they would of course benefit by getting a portion of revenues. It seems like a win-win. Do you think there is a way to make this happen?

Brett, what makes you certain that the market you're in calls for a flipper to be all in at 60% ARV? Is that something you read in a book or learned by experience? Serious question. Also, I think your ARV may be low but I'm not looking at all of the details. It wouldn't hurt to run this by a local broker that you have a relationship with to get their opinion on a listing price. It also wouldn't hurt to walk the property with a contractor to get a professional opinion on the rehab. It's important to get your numbers right and to make it a win-win-win for the seller, investor, and wholesaler. PS ask the seller what they need to get so they're content after walking from the closing table. Some sellers may sound motivated but then they have an unreasonable number in mind that will take some hard nose negotiating on your end to make a deal happen. Good luck!

Joe Villeneuve the way we would do it with bank financing is 80% LTV held by bank, 10% retained by seller as a second mortgage and 10% brought by me.

Matthew Enos I appreciate that insight. Is that something you've done before? Sounds like it would work. Side note: do you invest in Dauphin county? If so, we should link up. We find a lot of off market deals through our marketing.

Joe Villeneuve I've met with commercial loan officers who told me that this financing scenario wouldn't be an issue. They said that they regularly under right loans where the seller is holding a 10% note.

Hey friends, I came across a 3-unit property in a decent part of Harrisburg City that I would love to own. The owner called after getting a piece of my mail. They are motivated to sell, but not motivated enough to sell for a discount that would make a wholesale possible. I like the apartment because it's been well cared for and produces good income. The owner is interested in an owner finance deal, but not for a large portion. They want to get a good chunk of cash out. He's entertaining the idea of a bank holding 1st lien and 80%, then he would take 10% and 2nd position. I would have to come up with the other 10% in that scenario. Im trying to think of other creative ways to minimize my cash investment. Any advice? -Nick