Acquiring my first property with Section 8 Tenant
I'm in the process of acquiring my first rental property that I intend to BRRR. There's a section 8 tenant in there that wants to remain. I inspected the property with a contractor, made a formal offer that will probably get accepted as I negotiated verbally with the wholesaler before sending the offer.
I'm pretty much at a loss here as to what else to do. This will be a 100% cash purchase and my intention is to refinance as soon as I close. I've spoken to a few lenders in my area and they say they don't require seasoning for their products. I debated the "in my name vs LLC argument" and decided to go with it being in my name for now. Is that a bad move?
Should I get an actual inspector in there as the initial inspector was with a contractor? The property passed the Section 8 inspection 5 months ago. I'm reluctant to do too much rehab as I'll have to spruce it up again if this tenant decides to leave and she's very content with things as they are. As i wait for the offer to be accepted and time to close, what should i be doing? The tenant pays all utilities and they're in her name.
As far as Section 8, the tenant pays a portion(1/3) of the rent and Section 8 pays 2/3. Right now, the tenant is on month to month as her lease expired after the owner passed and I'd like to sign them to a new lease before settlement. Is this possible? Also when does Section 8 typically make payments? And how do i go about informing them of the change in ownership.
Lastly is there a reason why i would not want to close this ASAP if possible? I specified a 30 day close.