All Forum Posts by: Steve Saltman

Ok, to make things simple, I created a payment method called "Section 8" and mark the payment received as from "Section 8".

Tenant pays, say $300. Housing authority pays, say, $700.

When recording the $700 payment, do you create a new customer for that tenant/HA combo or just have all HA payments from a single "Housing Authority" customer? Or just ignore the source and say that the payment came from the tenant and put a note "from housing authority".

There's an extra step applying a separate customer payment against a rental invoice created for the tenant.

Any thoughts?

That neighborhood is fairly rough. One of my section 8 tenants moved from that neighborhood to my unit because of "issues".  That said, it's well located in many ways.  I looked there but didn't buy anything.

Subject property is next door to a multi I own.  It's half re-habbed.  Owner is a contractor who appears to have run out of money.  I've met him. Nice guy. Says he going through a divorce.  

He has a $225K mortgage at 14% (yes, you read that right), or so he says.  I estimate the property needs $75K to $100K to finish as a 3 fam.

I offered to buy it for $275K. He said no. Instead, he said I should refinance him for $300K at 12%.  So 1%/month interest.  He says he will finish the property and then refinance it and pay me back.

I'm considering this because 1) $3K/month is like rent. and 2) if he can't pay I get the property.

I know that the biggest risks are:

a) I can't foreclose because of some legal **** with his wife or something else. I'm having a real estate lawyer draft all the docs, so I feel I'm protected, but please correct me.

b) the property needs more than $75K or he otherwise wrecks it and I end up with a hulk worth less than the $300K I have sunk into it. I have no real solution for the risk except maybe have some sort of monthly inspection on his work progress

c) Not sure if he can get insurance with me as the named beneficiary

What else am I missing?