All Forum Posts by: Orlando Perez

I actually have a Veteran HudVash/Section 8 tenant. Being a Veteran myself, I gave him a chance. In the end, he's that tenant that has not paid me rent in 5 months. However, I know this doesn't mean all section 8 tenants should be judged because of one bad apple. Depending on how this week interview goes with this appointment I have this Friday, will determine if I keep this rental and cash flow. Or sell this rental so I can free up my VA Loan and move.

 Undoubtedly Section 8 tenants are ideal for the remote owner. No need for a property manager, often Section 8s max rates are above market so you can get the units to above-market rent on that basis. The inspection is actually a blessing if you're far from the property - saves you having to do one. Some of the inspectors can be nitpicky so where they are that way we set up a couple easy fails so they don't have to look hard to find something to fail us on that could involve more work. 

 What is your reluctance to renting out the two units and getting a new loan when you move? You've met the residency requirement. 

You would need to check your VA Certificate of Eligibility for the area you are moving. The entitlement code is two digits which will correspond to a maximum loan amount for the area. Subtract this amount from the amount you currently owe and this is the amount of financing you still qualify for through VA. Of course you can also refinance the California home into a conventional investment property loan. Prior to making a decision it is probbaly wroth paying $500 for an appraisal to fully understand what the property is worth with the new ADU.

Los Angeles real estate has made homeowners and investors rich beyond their wildest dreams. I gave up my slice of it 25 years ago. Don't make the same mistake I did if you can avoid doing so.