I am considering the purchase of a property in another State that has had a renter for over 16 years and who is under the HUD section 8 program. I'm looking for feedback from anyone who's done this before.
Here are some of my questions:
Do I need to go back to HUD to requalify the home as a Section 8 property?
Should I, or do I, need to have new rental agreement drawn up as the new owner?
If the renter paid the seller a security deposit 16 years ago, should that be transferred to me or negotiated under the purchase agreement? I would think that security deposit at the time would be way under what it would be today.
It appears the renter is paying an amount under the HUD FMR rate for this 2 bedroom home, so I'm curious to know how I, as a new owner, could get that raised?
The renter, described by the current owner, is on the ummmm, inhospitable side, (so to speak :) ) and won't let anyone in the property to take pictures of it. The current owner says the renter does keep the property up and will allow someone to inspect it, though the renter will follow that person around the entire time. I think the current owner is somewhat intimidated by the person renting and won't do anything to rock the boat in fear of losing her.
The fact that I can't get any pictures of it internally seems to be a red flag for me. Anyone ever buy property with a current section 8 renter with only a home inspection report done?
Appreciate any feedback at all. Thanks for reading my rather long email!