I'm trying to wholesale a deal. I have a contract on a house. The owner is a landlord with a section 8 tenant. The lease has 4 more months. Can I wholesale this deal to other investors? How do we avoid the original owner breaking any rules of section 8 housing?
The lease runs with the land. Any new owner must honor the current Sec 8 lease.
Do we have to do a new lease? Or sign something that the new owner assumes? What if anything should I put in special provisions? Any other documents that I need?
I found a good deal off market last year. After negotiating all the terms and price with the seller. Right before we are going to put it under contract, the seller told me that the tenant is section 8.
At first, I thought it is ok, I can just take over the lease. After researching more over the internet, it is more than I thought.
First, the buyer need to apply and be in the section 8 approved landlords list, then inspection etc...
I felt too much. I didn’t want to be in the section 8 approved landlord list, didn’t want the paperwork, didn’t want section 8 tenants after google more section 8 stories online.
I gave up the off market deal. Didn’t regret.
I feel that that it is more difficult to sell/buy a house with a section 8 Tenant.
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