Idea to l/p from section 8 Landlords

[-Tony- 0]

This to is from another site but who cares if it works?

 

This idea has to do with Section 8 rentals.  Section 8 rentals are government subsidized rentals.  The tenant pays a small amount each month, and the government pays the rest.  Tenant portions can range from anywhere from thirty to one hundred and fifty dollars or so a month.

 

The government used to pay for damages when they occurred, but this has since changed.  So the owner of the property bears the burden when something goes bad.  When dealing with these kind of tenants it won't be long until it does.  Of course usually these landlords are looking to minimize the management headaches of rent collection.  They tend to loose site of what their property is worth, they just want guaranteed rent.  These are great Lease/Option candidates because the landlords are familiar with leases, and will jump on the chance to alleviate maintenance responsibilities.

 

There are several of these in working class areas but you can find others in great areas you may be farming now.  The key is knowing your areas, if you can find one in an area that has houses turning over fairly quickly (within 60 - 90 days) this is the one you want.  You will also stumble on some that are in good areas that could be rented or sold to more affluent tenants who can afford to pay their own rent.  Jump on these!

 

Here's the scoop on how to get in:

 

Found out where your local housing authority office is in your area.  Ask about their free class for landlords on Section 8's.  They will probably give you some pamphlets that explains the system.  Attend the free class, it will help you know your seller and learn some of the pros and cons of Section 8's (inside info for your L/O pitch).  At the class they will tell you "as a landlord" how to get the list of Section 8 properties currently available (Wow, someone giving You great Leads!).  These lists are typically updated weekly with the address, # of bedrooms, baths and rent.  Know your market and you will find houses who's rent is well below their value (another key to finding owners unaware of what their property is worth).  Take this list and write to all the owners in the areas that interest you.  Depending on your area this can be HUGE (an ever growing list of great L/O leads)!

 

It will help to build a database of these properties and mail them at least monthly.  They will end up with a problem and become motivated like ….now!  You want to be the one that they are familiar with and comes to mind first.  Only write to those that are in your areas and are the cream that has risen to the top.  Using this little niche your database will grow very quickly.  The areas that sell well (fast) are those you want to concentrate on.

 

Another great thing about these properties is that they must pass a strict Section 8 inspection, so they will typically be in move in condition except for maybe one or two flaws (which made the seller motivated).

 

That's it.

[MichaelC 160]

Tony, being a Section 8 landlord is something I decided to avoid early on in my career. Nonetheless, the scenario you describe in your post is one worth considering for those who are open to a more hands on type of relationship with their rental properties and their tenants.

Thanks for sharing.

[Guest Guest]

Know your market and you will find houses who's rent is well below their value (another key to finding owners unaware of what their property is worth). Take this list and write to all the owners in the areas that interest you. Depending on your area this can be HUGE (an ever growing list of great L/O leads)!

I'm a little confused about this post.

Is the author suggesting this as a method of locating great deals ?

 

Maybe it's different in his area, but in my area section 8 landlords get higher rents, not lower.

In addition, it's not true to say that section 8 landlords " loose site of what their property is worth, " or " they just want guaranteed rent."

 

My experience has been that section 8 property owners are more savy than most. These tend to be seasoned real estate investors. It takes some time and understanding of how the system works to even become one. I really doubt the writer of this article has actually done any of this.

 

And while we're on the topic, I recently rented to my first section 8 tenant. The house is in a middle class neighborhood and the tenant is great. Her son has a disability of some sort. I had planned to rent this house for about $650 per month, and that would have given me positive cashflow. With section 8 I"m getting $775 per month and 100% of it is guaranteed from the section 8 office. Furthermore, section 8 WILL PAY for damages if they occur.

As I said, it's my first one, but I think I'll be doing more . . . .

[moneynfast 0]

Tony can you give us a sample letter that you would send to the homeowner, It sounds like something I would do down the road. Sounds like a good plan, Like you said the owners are already use to leasing there home out so this will not be new to them. And you will be getting t/b instead of section 8 tennants.

 

MichaelR