All Forum Posts by: Patti Robertson

Are you asking about a seller who is also a licensed agent, or a licensed agent who has a listing you want to buy?

Did your formalize this arrangement with a purchase option, land contract, contract for deed, etc? Or is he in a regular lease? Do you have him paying the taxes and insurance also? If not, you should be. That will help it be profitable for you. I've done this several times, and have used either a purchase option along with a lease or a land contract. Sometimes I keep the payments low, and agree to pay for materials if they fix up the house. Sometimes they are responsible for all improvements. Either way, I reserve the right to approve all structural changes. You didn't share enough about the finances to help us advise you. What is your interest rate? What is your monthly payment, inc taxes and insurance? How much is the tenant paying? What is the ARV of the house?

I'd start with your state landlord tenant law to make sure you are meeting all the requirements.  You cannot count on tenants knowing anything.  You need to spell out all your expectations at the lease signing. Hire a local landlord/tenant attorney for a consult and pay for a great lease to get you started.

Hellllo.  What kind of advice are you looking for?

I'm not a lender or a lending expert, but you will want to run the roommate fronting your rent for your downpayment by your lender. Underwriting will want to see where the downpayment came from.  

A SEC 8 voucher hold can't rent a room, so you are off the hook!  

I wouldn't say I "specialize" in properties under $30K, but I have bought plenty of them.  I've also bought plenty above $30K.  The lowest I've ever paid was $4K.  That one I turned into a storage lot and have rented it for $350/month for many years. I pIaid $8K for another that was a complete rebuild (not new construction).  We spent $40K to create a small 3/1 that has been rented to the same SEC 8 tenant since we put the house into service in 2012. We are getting a low rent, compared to our other SEC 8 rentals, because the tenant doen't work, but we are happy with the $1100 we get each month.  Another we bought for $27K, did zero work to, and sold it on a land contract for $60K on a 20 year note @ 8%. There are lots of options, and all of them are terrific!

My local authorities require us to resubmit a lease and rent request when we purchase a property with a SEC 8 tenant in it.  Just ask for the rent you want.  If the tenant works, you should be able to get market rent.

@Yoni R. - It's not that complicated, but you need to keep the tasks straight so you get paid as quickly as possible. The fasted amount of time from the time you accept a tenant to the date you can sign a lease and move them is  about 20 days.  You get an inspection before the tenant moves in, about 9 months after than, and then annually thereafter.  I'm attaching a handout I use when teaching the basics of SEC 8 at investor clubs in my local market.  Hopefully it isn't a violation of BP to share it.  Feel free to contact me if you have any questions.

Click here - Intro to SEC 8

LOL!  Don't be afraid of SEC 8.  When you are in a low income neighborhood, you have just as much chance of getting a bad tenent whether they have a SEC 8 voucher or not. At least with a voucher you have free landlord rent insurance!  If the tenant loses their job, at least you will still get paid!