Rental Property thread:Good, Bad, & Ugly

[.r.]

Good post

 

[BushidoBrown]

I'm seen as American first ... then black second... it's bizzarre...

 

[BushidoBrown]

I created this thread on the Root forum, so that it would remain a serious topic. You can't spend a few posts telling people to "boss up" and then joke about bouncing the country when a member is asking you for advice.

theres always some clown who made it and parades around but cant provide any tangible guidance on what they did to become successful
nikkas cant explain shyt and act like everything is the law of attraction and meditation

thanks for creating this thread im sure there are some brehs who can drop some good game in here over time

 

[GnauzBookOfRhymes]

Whenever you hear someone say section 8 is too complicated or not worth the headache, it usually means they've never actually utilized the programs. It's music to my ears because since new vouchers are rarely issued, so investors that get their properties approved are chasing a small number of tenants. Anything that keeps the number of potential competitors is good news to me.

If you are a new inexperienced investor looking to own a rental property, section 8 is an excellent entry point. Guaranteed rental payments direct deposited into my accounts. Tenants who because they don't want to lose their vouchers have serious motivation not to damage your property. If I have a vacancy the agency will do all the work of finding me potential tenants. Finally those annual inspections go away after a few years of passing. And to be honest the annual inspections are actually of benefit to you because it forces you to keep the property in good condition.

Finally , once you become a trusted landlord within the program there are many programs through HUD and the local housing agencies that provide capital financing and other incentives if you want to scale up.

If you're a younger guy/gal in here looking for advice - this applies in housing or any business - NEVER simply accept the conventional wisdom. Because it is the space between conventional wisdom (what everyone says to be true) and reality, where money can be made.

You can do the research yourself but understand that many of the largest real estate management firms, hedge funds, private equity firms, real estate investment trusts and private individual investors have MASSIVE exposure to the Section 8 program.

 

[Rawtid]

This guy told me he does month to month leases only, 2 months + 1st first month rent as deposit, no credit check, cash only and he hasn't had an issue with tenants since then. Most people want their two months back when they leave, especially when you'e looking at a couple thousand so they leave the place in immaculate condition.

 

[get these nets]

Whenever you hear someone say section 8 is too complicated or not worth the headache, it usually means they've never actually utilized the programs. It's music to my ears because since new vouchers are rarely issued, so investors that get their properties approved are chasing a small number of tenants. Anything that keeps the number of potential competitors is good news to me.

If you are a new inexperienced investor looking to own a rental property, section 8 is an excellent entry point. Guaranteed rental payments direct deposited into my accounts. Tenants who because they don't want to lose their vouchers have serious motivation not to damage your property. If I have a vacancy the agency will do all the work of finding me potential tenants. Finally those annual inspections go away after a few years of passing. And to be honest the annual inspections are actually of benefit to you because it forces you to keep the property in good condition.

Finally , once you become a trusted landlord within the program there are many programs through HUD and the local housing agencies that provide capital financing and other incentives if you want to scale up.

If you're a younger guy/gal in here looking for advice - this applies in housing or any business - NEVER simply accept the conventional wisdom. Because it is the space between conventional wisdom (what everyone says to be true) and reality, where money can be made.

You can do the research yourself but understand that many of the largest real estate management firms, hedge funds, private equity firms, real estate investment trusts and private individual investors have MASSIVE exposure to the Section 8 program.

Appreciate your sharing your experience and insight. I'd personally prefer to charge less rent and get tenants who get up every morning and work than to get a section 8 tenant. I think presence of Section 8 residents immediately alters the complexion of the neighborhood for the worse. The figurative complexion.

I've gone to landlord/tenant court proceedings a few times( accompanying family members who were evicting people)..and I've seen/heard section 8 recipients in there every single time. This, despite others saying the same things you've said in your comment. about Section 8 people have every incentive to keep property up and not cause trouble.

I agree with you about Wall Street exposure to Section 8. Those sharks will be on the golf course lamenting "poor people" on "government assistance" and steady making money from the same programs they are publicly criticizing, fukkin hypocrites.

I also agree with your general advice about accepting conventional wisdom.

 

[get these nets]

This guy told me he does month to month leases only, 2 months + 1st first month rent as deposit, no credit check, cash only and he hasn't had an issue with tenants since then. Most people want their two months back when they leave, especially when you'e looking at a couple thousand so they leave the place in immaculate condition.

Interesting...and if it's worked out for him, great. Never thought of this.

Seems that it would attract people who would have a hard time renting otherwise. Maybe made financial mistakes in the past and trying to get things right.
Hard for a leopard to change his spots though, so I could see person's old habits catching up to them..and not paying and trying to say "let the deposit pay for the rent this month"

But like I said, if he found a system that works for him great.

 

[GnauzBookOfRhymes]

Appreciate your sharing your experience and insight. I'd personally prefer to charge less rent and get tenants who get up every morning and work than to get a section 8 tenant. I think presence of Section 8 residents immediately alters the complexion of the neighborhood for the worse. The figurative complexion.

I've gone to landlord/tenant court proceedings a few times( accompanying family members who were evicting people)..and I've seen/heard section 8 recipients in there every single time. This, despite others saying the same things you've said in your comment. about Section 8 people have every incentive to keep property up and not cause trouble.

I agree with you about Wall Street exposure to Section 8. Those sharks will be on the golf course lamenting "poor people" on "government assistance" and steady making money from the same programs they are publicly criticizing, fukkin hypocrites.

I also agree with your general advice about accepting conventional wisdom.

A few more misconceptions. First few section 8 tenants have their rent fully subsidized, so the idea that they're all sitting home all day is unfair and inaccurate. Most are working but make below a certain amount. The amount of rent subsidy depends on their income/family size etc. I've had section 8 remand who are almost fully subsidized and one who only received 300/ month but was still responsible for $770.

Secondly while the agency will send you prospective tenants you as a landlord still need to do your due diligence. Check references, do interviews/meet them prior etc. The point is that you're just as likely or even more likely to run into these issues with non section 8 tenants.

Finally if you're already in an upscale or up and coming area it's likely that the private market rates will be higher than section 8. I recommend section 8 to new/inexperienced investors bc it's a way to make money even in less desirable neighborhoods and without the same barriers from cost/price of property.

 

[Rawtid]

Interesting...and if it's worked out for him, great. Never thought of this.

Seems that it would attract people who would have a hard time renting otherwise. Maybe made financial mistakes in the past and trying to get things right.
Hard for a leopard to change his spots though, so I could see person's old habits catching up to them..and not paying and trying to say "let the deposit pay for the rent this month"

But like I said, if he found a system that works for him great.

Eh, well the security deposit (2 months rent), is returned at the end of the lease, once the house is in good condition. The tenant can't use it for rent. Also, because it's month-to-month lease, you can file for eviction as early as 1 day after late/no payment. It's not like a 12 month lease, where you and the tenant are locked in. I guess his mindset is dealing with a potentially bad renter is better for 30 days at a time than 12+ months at a time.

 

[-DMP-]

Subbed, been wanting to get into the rental property game. was looking to take the duplex route tho.

 

[Losttribe]

Gotta have ur 1k in for the wayne county tax auction this week. Would be a good place to start for someone new to the rental game

 

[Poitier]

@BrokePhiBroke

 

[Cynic]

Interesting...and if it's worked out for him, great. Never thought of this.

Seems that it would attract people who would have a hard time renting otherwise. Maybe made financial mistakes in the past and trying to get things right.
Hard for a leopard to change his spots though, so I could see person's old habits catching up to them..and not paying and trying to say "let the deposit pay for the rent this month"

But like I said, if he found a system that works for him great.

Or immigrants who have yet to establish a credit history...

 

[get these nets]

Eh, well the security deposit (2 months rent), is returned at the end of the lease, once the house is in good condition. The tenant can't use it for rent. Also, because it's month-to-month lease, you can file for eviction as early as 1 day after late/no payment. It's not like a 12 month lease, where you and the tenant are locked in. I guess his mindset is dealing with a potentially bad renter is better for 30 days at a time than 12+ months at a time.

If it works for him, great. Hedging his bets. And it actually does seem to prevent some potential problems.

The thing is....depending on the county you live in and the time of the year it is.....after you file for eviction, you might get a court date that's 3-5 weeks after you file....and if tenant is stubborn or a deadbeat...it's the same drawn out process to have sheriff's office physically remove tenant whether it's month to month or a longer lease.

I actually like your man's idea...just figuring out all the angles.

 

[get these nets]

A few more misconceptions. First few section 8 tenants have their rent fully subsidized, so the idea that they're all sitting home all day is unfair and inaccurate. Most are working but make below a certain amount. The amount of rent subsidy depends on their income/family size etc. I've had section 8 remand who are almost fully subsidized and one who only received 300/ month but was still responsible for $770.

Secondly while the agency will send you prospective tenants you as a landlord still need to do your due diligence. Check references, do interviews/meet them prior etc. The point is that you're just as likely or even more likely to run into these issues with non section 8 tenants.

Finally if you're already in an upscale or up and coming area it's likely that the private market rates will be higher than section 8. I recommend section 8 to new/inexperienced investors bc it's a way to make money even in less desirable neighborhoods and without the same barriers from cost/price of property.

Thanks for the clarification.