DaveinElma Posted May 2, 2012 Share Posted May 2, 2012 Got a rental property? Thinking about renting to Section 8? Watch this and think again. Link to comment Share on other sites More sharing options...
IDBillzFan Posted May 2, 2012 Share Posted May 2, 2012 Don't like it, don't rent to them. Link to comment Share on other sites More sharing options...
Chef Jim Posted May 2, 2012 Share Posted May 2, 2012 Don't like it, don't rent to them. I'm not sure he was bitching about it. He was just showing how they treat a property that they are mostly not even paying for. A lot of people like to rent to section 8 because much of the rent is guaranteed by the government. I wouldn't be surprised is some of those repairs can be billed to the government. I may be completely off on that but we are talking about the government. You noticed how calm he was through that whole video as if he's been through it before. And realizes it's a part of the process. Link to comment Share on other sites More sharing options...
dayman Posted May 3, 2012 Share Posted May 3, 2012 (edited) I'm not sure he was bitching about it. He was just showing how they treat a property that they are mostly not even paying for. A lot of people like to rent to section 8 because much of the rent is guaranteed by the government. I wouldn't be surprised is some of those repairs can be billed to the government. I may be completely off on that but we are talking about the government. You noticed how calm he was through that whole video as if he's been through it before. And realizes it's a part of the process. I'm sure it comes under some sort of insurance? Also this guy is hilarious haha. Edited May 3, 2012 by TheNewBills Link to comment Share on other sites More sharing options...
3rdnlng Posted May 3, 2012 Share Posted May 3, 2012 I've had personal experience with this. At one time I had over 50 rental units in good areas with maybe at the most 5 of them being Section 8. I remember thinking that if I was to start over again I would purchase in lesser areas but solid brick flats and offer them out for Section 8. The people getting Section 8 are paying 10-20% of the rent. I would look in their eyes and tell them that if they didn't keep the property up and pay me on time that I'd get them thrown off the program. The program backed me up too. Link to comment Share on other sites More sharing options...
dayman Posted May 3, 2012 Share Posted May 3, 2012 (edited) I've had personal experience with this. At one time I had over 50 rental units in good areas with maybe at the most 5 of them being Section 8. I remember thinking that if I was to start over again I would purchase in lesser areas but solid brick flats and offer them out for Section 8. The people getting Section 8 are paying 10-20% of the rent. I would look in their eyes and tell them that if they didn't keep the property up and pay me on time that I'd get them thrown off the program. The program backed me up too. So do you have to rent to these people? Can you just no to section 8 all the time? Edited May 3, 2012 by TheNewBills Link to comment Share on other sites More sharing options...
3rdnlng Posted May 3, 2012 Share Posted May 3, 2012 So do you have to rent to these people? Can you just no to section 8 all the time? You totally misunderstood what I was saying. I was saying that if I had it to do over, I'd (if I was only interested in cash flow) buy places in questionable areas that were sound structurally and rent to Section 8 people who I didn't have to chase for rent. The program doesn't cut them any slack if they don't pay their share or don't keep the property up. I'd be buying good places in so, so areas where I could get them a lot cheaper. As far as being forced to renting to "these people" that depends on the way you have purchased the property. I turned down a large amount of redevelopment cash on a larger project that would have forced me to adhere to strict guidelines. In that instance it worked out for me but in other situations I might have taken them up on it. PM me if want to enter into the area of 1%er wantabees. Link to comment Share on other sites More sharing options...
DC Tom Posted May 3, 2012 Share Posted May 3, 2012 You totally misunderstood what I was saying. I was saying that if I had it to do over, I'd (if I was only interested in cash flow) buy places in questionable areas that were sound structurally and rent to Section 8 people who I didn't have to chase for rent. The program doesn't cut them any slack if they don't pay their share or don't keep the property up. I'd be buying good places in so, so areas where I could get them a lot cheaper. As far as being forced to renting to "these people" that depends on the way you have purchased the property. I turned down a large amount of redevelopment cash on a larger project that would have forced me to adhere to strict guidelines. In that instance it worked out for me but in other situations I might have taken them up on it. PM me if want to enter into the area of 1%er wantabees. Also depends on the state or municipality. I know new construction in this area (luxury apartments and condos, no less) are often required to set aside a certain number of units for Section 8 rentals or low-income ownership programs. Link to comment Share on other sites More sharing options...
Chef Jim Posted May 3, 2012 Share Posted May 3, 2012 Also depends on the state or municipality. I know new construction in this area (luxury apartments and condos, no less) are often required to set aside a certain number of units for Section 8 rentals or low-income ownership programs. All new construction? Link to comment Share on other sites More sharing options...
dayman Posted May 3, 2012 Share Posted May 3, 2012 (edited) You totally misunderstood what I was saying. I was saying that if I had it to do over, I'd (if I was only interested in cash flow) buy places in questionable areas that were sound structurally and rent to Section 8 people who I didn't have to chase for rent. The program doesn't cut them any slack if they don't pay their share or don't keep the property up. I'd be buying good places in so, so areas where I could get them a lot cheaper. As far as being forced to renting to "these people" that depends on the way you have purchased the property. I turned down a large amount of redevelopment cash on a larger project that would have forced me to adhere to strict guidelines. In that instance it worked out for me but in other situations I might have taken them up on it. PM me if want to enter into the area of 1%er wantabees. All I was asking is if, having experience with this, you were subject to some sort requirement to offer a certain percentage of units for people using this program. If for example, you would be subject to liability if someone brought a suit alleging some sort of section 8 discrimination of sorts... Edited May 3, 2012 by TheNewBills Link to comment Share on other sites More sharing options...
3rdnlng Posted May 3, 2012 Share Posted May 3, 2012 Also depends on the state or municipality. I know new construction in this area (luxury apartments and condos, no less) are often required to set aside a certain number of units for Section 8 rentals or low-income ownership programs. This was in PA. I had a 30 unit that I was rehabbing. They (government agency) actually approached me and wanted to pay (some retroactive) for the rehab. As they explained it I didn't have to rent to any low income people but I had to take their applications and consider them. Wink, wink. I didn't feel comfortable, plus I had another entity that wanted to rent the whole place and would sign a 10 year lease. I ended up going with the ten year lease but saw first hand how the urban development works. Spend the money or you won't get it next year! I would be remiss now if I wouldn't remind the lyrbob that he needs to explain his knowledge of the real estate and mortgage industries. Link to comment Share on other sites More sharing options...
DC Tom Posted May 3, 2012 Share Posted May 3, 2012 All new construction? In DC and suburban MD, yes, to the best of my knowledge. I'm trying to think of one that went up in the past six years that didn't have some sort of low-income set-aside, and between the condos and the condos-converted-to-apartments-because-the-real-estate-market-tanked-and-no-one-was-buying...maybe Gallery Place, in downtown DC. Within three miles of me, I can think of four in the past three years that I know had to set aside a certain number of units for low-income housing as a condition of approval by the city. In VA, I can think of a few more that didn't...but wife and I are more familiar with the District and neighboring Maryland counties. Link to comment Share on other sites More sharing options...
Just Jack Posted May 3, 2012 Share Posted May 3, 2012 Also depends on the state or municipality. I know new construction in this area (luxury apartments and condos, no less) are often required to set aside a certain number of units for Section 8 rentals or low-income ownership programs. All new construction? I'm curious too. I believe, without researching it, that in NY if you accept any goverment help (loans, tax breaks, etc) you would need to rent to Section 8. So I find it hard to believe, though it is the DC area, that all construction would have to set aside some Section 8 housing. Link to comment Share on other sites More sharing options...
B-Large Posted May 3, 2012 Share Posted May 3, 2012 I don't care to compete for those properties or tenents, but I have friends who buy 4 plexes in dumpy neighborhoods for chump change, and make so much on the cash flow that if a unit get messed up, you just plan for repair, ie the carpets, etc. Why would you ever trust a renter to change the air filter IN YOUR PROPERTY? Why do some people let tenants paint, do repairs, etc. Just dumb. I like to give myself a reason to go see my units, and the airfilter change is a good reason. It is amazing that people are willing to live like that... sad I'm curious too. I believe, without researching it, that in NY if you accept any goverment help (loans, tax breaks, etc) you would need to rent to Section 8. So I find it hard to believe, though it is the DC area, that all construction would have to set aside some Section 8 housing. If you take Government money via loab backing, credits, etc there is a often a stipulation to have low-income, or income qualified housing in the same development as your millions dollars homes. The new trend is to build low income housing integrated within regular and upscale housing, and studies have shown that the people who live in the low-income housing like this tend to take much better care of it (there is a guy in Chicago that championed this research and idea, can't remember his name.) I think the days of the low income apartment buildings are over.... Link to comment Share on other sites More sharing options...
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