All Forum Posts by: Tanner Sherman

I use High Level for my real estate team, marketing, email campaigns, workflows and automations, text campaigns, social media management, as well as CRM. It's phenomenal! I am able to nurture both leads for SF sellers and buyers, as well as my investors for our funds and syndication. It's robust and easy to use. Integrates with almost anything and there's  ton of support. - in my humble opinion. 

You must intend to stay in the property for a minimum of 1 year for all owner occupant type loans. This includes, FHA, VA, Conventional, USDA. Like the consensus above, life changes can happen that cause you to change where you live, but if you go to apply for another loan within 12 months you will have to write a letter explaining the extenuating circumstances. You might get away with it, but do it again and apply for a 3rd loan, you're asking to be investigated for mortgage fraud. Not worth it.

Quote from @Frankie J Ortiz:

 Hello, my name is Frankie, I'm looking into purchasing my first duplex to do some house hacking but the property has tenants until June 2024. I was wondering if there's any way around this where I could move one of the tenants out so I could move into one of the units. I know it's kind of harsh to kick a tenant out so I could move in but I'm just tired of paying high rents. Any advice would help, Thank You! 

We have offered to buy tenants out of their lease. Say you cover their break lease fee or just offer them something like $1k to move out. This is a useful trick to include in your offer and have the seller deliver vacant. 

I agree with Scott- I have not found any banks that will do an 85% LTV given the current market conditions on investment properties, sounds like they are a great one to build a relationship with. If you are looking for an owner occupied property in order to househack, you should have plenty of opportunites for a 5% down conventional or 3.5% down FHA or even down payment assistance loans that offer an even higher leverage opportunity. What are your investing goals?

Quote from @Caroline Choe:

I enjoyed hearing what a good experience you've had, OP. It of course isn't all sunshine, lollipops, and rainbows as others have already brought up, but it's good to be educated on opportunities for guaranteed rent and to give the program a chance. Optimally, it benefits both the landlord and the tenants (and even the government by providing additional housing!)

When it comes to accepting Affordable Housing Vouchers it still comes down to your tenant screening practices to ensure you're getting the best possible tenant for your property. It's during this screening procedure that the landlord or property manager would deny applicants if they had any red flags such as bad credit, past-due or unpaid rent, prior evictions, or criminal offenses. Some applicants will put fake references as well, so it's really important to call and verify the information. 

From what I can see, OP has followed all procedures to a T and was blessed with a great tenant. Hopefully, the tenant follows through with their Real Estate classes and continues to be a good tenant for you! 

 Well said. I realize it won't be 100% great and the tenant could be completely full of it, and I appreciate all the perspective in the responses. 

Quote from @Scott Mac:

Your sample is only 1 person in one city.

Sample a few thousand, and in places like Detroit, Cleveland, and Newark, etc...

and that might change the outcome a bit.

But like any other renter, there is also the 'Luck of the Draw", they look good now, they look good in the past, but job loss, or alcoholism, or drugs leads to their downfall.

Just my 2 cents.

 I've had those same problems in dozens of other properties that were not on section 8. In the same market. I agree those markets probably see a higher volume of issues, but to write off the whole program as bad would be a mistake.  

Quote from @Bill Burkhead:

Hi everyone, 

Curious to know if the  tenant is paying all utilities do I have them put them in their name or keep them in mine and bill them? Pros/Cons of each? 

thanks so much! 

 I would agree with the other responses about putting them in the tenants' name whenever possible. If rates increase, the tenant pays the company directly. If you have to do any kind of utility billback, they will treat it the same as rent and when the company increases rates, the tenant will be upset with you for raising their rent. For properties that we cannot put all the utilities in the tenant name, we do a utility billback on top of rent as a fee. There are definitely months that we are not recouping the cost of utilities, but that's the game!

Quote from @Travis Andres:

I’ve recently seen a couple of stories on social media about a so-called “crash“ with Airbnb bookings in several markets, so wondering if anyone who actually owns is seeing it firsthand?

 For properties that aren't unique or true vacation properties, the market has become oversaturated by people trying to have their cake and eat it too. This increase in supply has affected bookings. If you want to make it now, gotta be unique and stand out. 

I would agree with Patrick, we just got one of our properties on the program it was a better rental rate than the traditional renters would pay, and the inspector was extremely easy to work with. We had to install a couple CO detectors, fix a GFCI outlet and cover some exposed wires. She came back to reinspect the same day, it cost us nothing and now we have a great tenant moving in above market rate. 

Hello BP,

I just had to share my recent experience with Section 8 rentals, and I couldn't be more thrilled. Initially, like many others, I harbored misconceptions about this program only hearing the negative connotations about units getting ruined and poor tenant quality. However, after educating myself and delving deeper, I discovered the untapped potential it holds. I was marketing one of my units for rent recently and found that 50-75% of the inquiries/applicants were section 8. They usually initiate the contact with "do you accept section 8" and my response was always, "we are not currently approved to be on the program, but are not against it". To which 99% never responded. Except for the 1 that we wound up renting to. 

She called me and explained that she has a full time job with 3 grown kids and was a single mom. She told me, "the vouchers are temporary, just until I finish my real estate classes. Next year I'll be paying my own rent." Of course, I had a soft spot for someone aspiring to better their life through real estate. She offered to introduce me to the representative from the city, who assured me she was approved for the program and was in great standing. I did a background check that came back clean, credit score came back right on the border of our limits, but I took it a step further by not only calling her reference and verifying that was the property manager, but also calling the owner of the house and hearing if she was a good tenant. The owners were in their 80's from my research, said the tenant had lived with them for a long time and they were very happy with her. They knew her by name and said they were sad to see her go. 

Section 8 rentals can be an incredible opportunity for both landlords and tenants alike. It's not just about rental income; it's about providing a stable home for families in need. Contrary to popular belief, the program offers a reliable source of income, with regular payments from the government directly. Plus, I found the community of Section 8 tenants to be genuinely caring and grateful, which has made the experience even more rewarding.

There are various resources available to assist landlords, making the process easier and more efficient. By letting go of my preconceptions and embracing Section 8, I've found a meaningful way to contribute positively to my community while securing a stable income. It's time we debunk the myths and consider Section 8 rentals as a truly great opportunity!