All Forum Posts by: Sarah Humbargar

We are under contract on a tri-plex which the owner claims had meth use but was mitigated to state standards, in Colorado. Two of the three units appear to be fully updated, but the upstairs unit has not been updated in years. None of the units share any air exchange or utilities, and the unit that is recorded to have had meth use has a completely separate entrance as well . What should we be looking for? I have yet to receive or find any documentation that full mitigation has occurred, what is typically issued when a meth lab has been mitigated? What kind of testing should we be doing during our inspection period and does anyone have recommendations in Colorado Springs? This is our first property we've tried to buy or lease with any evidence of meth. 

Thanks @Patti Robertson this is great.

Thanks all, this is super helpful. I assumed there should be a lease, the HAP contract  seemed overly simple. The seller provided me with a lease extension, but not a complete lease agreement so I need to get my hands on that. @Nathan Gesner you hit the nail on the head... I didn't realize until the inspection that the tenant is operating a massage business out of the second bedroom of the house and is only paying $125 a month in rent...just seem's off. I'm all about preserving affordable units, but not at all about supporting under the table work and abuse of taxpayer dollars. Thanks everyone for the input!  

We are under contract on a property with an existing tenant that has another 10 months on their lease with a HAP contract. I am unfamiliar with section 8 and we have never owned a property with a HAP contract, looking for some experts.

The seller has only provided us with the HAP contract and no additional lease. Is there supposed to a a separate lease in addition to the HAP contract? Would the lease define if we permitted to make changes to the property if the tenant is still occupying the property, if the tenant permitted to run a home business from the property, or is that all through the housing authority? I didn't get much information from the local housing authority and I'm needing some expertise, section 8 is new to us and we are planning to redevelop the property, rezone, etc and knowing that this lease has most of the year remaining, we need to know what to plan for. 

We are under contract on a property with an existing tenant that has another 10 months on their lease with a HAP contract. I am unfamiliar with section 8 and we have never owned a property with a HAP contract, looking for some experts.

The seller has only provided us with the HAP contract and no additional lease. Is there supposed to a a separate lease in addition to the HAP contract?  Would the lease define if we permitted to make changes to the property if the tenant is still occupying the property, if the tenant permitted to run a home business from the property, or is that all through the housing authority? I didn't get much information from the local housing authority and I'm needing some expertise, section 8 is new to us and we are planning to redevelop the property, rezone, etc and knowing that this lease has most of the year remaining, we need to know what to plan for. 

This is my favorite BP thread of all time.

Does anyone have experience with properties that you are buying with some form of financing where the main structure will be demolished or moved? How does a lender manage the short term decreasing collateral value during the transition? We have a property that could be seller financed and we want to move the structure to another property, then redevelop the site, but we can't seem to figure out how to finance the purchase. Is hard money our best option? 

@Lamont Marable Mostly HM lenders but I have reached out to a few banks. Quicken Loans states a minimum 25%.  

I'm in Colorado looking at investing in duplexes for the most part. Every lender we've spoken with is requiring 25% down for small multifamily, including duplexes, since we are not planning to live in the property but will still allow 20% on SFR. Anyone know of lenders that are doing small multifamily for 20% down? Who has the best terms right now?

Welcome from a fellow Springsian!