All Forum Posts by: Vaughn Black

@Chris K. Thank you very much for the response. The FMR's listed on HUD (the pic you placed) are the same ones I looked up and they are running about $300 per unit/ per month ABOVE what is currently being paid in each unit. Current rents in the area for a 2 bedroom are running near the HUD FMR's ($725-$800/month) . So I would basically have to negotiate a new HUD agreement with the local housing authority to raise rents or give a 60 day notice to the tenants I believe ??

@David Krulac BTW - I truly do appreciate your learned experience and advice- Thank you for your responses.

@David Krulac  regarding the pet issue, I had figured that.  Since they are on Month-to-month "tenancy at will" it might just be better to ask them to leave.

As for the section 8 issue, The inspections wouldn't bother me as the building is in great condition and I plan on keeping it that way. However, the rents currently being paid by section 8 (including tenant portion) are about $300 less (PER UNIT) than the FMR's listed on the HUD site for 2 bedroom apartment for Lackawanna county and are more than $100 less (per unit) than the Base rent rate. If I choose not to participate in section 8 as the new owner Do I simply notify the tenants and the local Housing authority which administers the program? Then it is solely the responsibility of the tenant to pay or move?

New investor alert.!!  I am buying a duplex in a small city in Northeastern Pennsylvania (Lackawanna county) , Current tenants are both on section 8 vouchers and rents are FAR below market rent rates. Both tenant leases have expired and are on month-to-month rental basis (one tenant has been there 9 years and the other just over a year) . Both tenants have pets and I want to make them no pet units.  I never really planned on participating in section 8 as a landlord. I am curious on how best to proceed....Any advice

Hello all,

Does anyone happen to have a recommendation for a CPA in the Scranton/Carbondale, PA area who is knowledgeable in the REI arena? Thanks for your time.

Hey all, Thanks for the replies,

Brian- I have a small saving and a 401K I can tap into to finance rehab and repairs. Spent the last year paying off some CC debt and getting my financial house in order.

Charles- Yes, I would do an 80% home equity and payoff the existing mtg, use the leftover to finance a cash deal and rehab it for  a flip or a rental. So the new HE loan would be the only lein on my home.  Right now homes for sale are fairly plentiful in this area and are underpriced, but rents are higher than I've seen in a while So it would probably be a rental after rehab, which would also serve a a future leverage source to fund another deal with equity if needed.

Marcin- Most properties are priced so Low (30-50K) that a low offer would be better done with cash instead of conventional. 401K and a small savings can finance the repairs/rehab.

Again, Thank you all for the information and input. I truly appreciate it 

Hello everyone,

 I have a question and I was hoping I could get some input from people with wayyyy more experience and knowledge than I currently have. I am new to investing and looking to do a fix and flip or a fix and rent deal (in case I can't sell in a timely manner) very soon (1-3 months ideally). Here is my question- We currently have a mortgage on our home in northeastern Pennsylvania on  which the payoff is  about 68-70% of value. I have a few options and I was wondering what the opinions are:

Option 1- Refinance with an 80% home equity loan and payoff the existing mortgage and pull a few thousand out in cash to put towards an investment deal. I could refi this at 30 years instead of our current 20 year mortgage and drop the monthly payment by $200.00 also which I could use elsewhere. This would give me the needed cash to purchase an under 40K property outright or a significant down payment for a more expensive deal and help with rehab costs But would be a new loan/inquiry on my credit report 

Option 2- leave it as is so I don't have any new inquiries on my credit report and no recent loans to make it easier to obtain financing for an investment deal over the next few months.

I see advantages and disadvantages to both and am trying not to over-analyze.

Thanks for any input