All Forum Posts by: Brad McCoy

I just sold my one and only SFR after holding for 16 years. I have a 1031 exchange set up and am under contract to buy a 20 unit apartment complex. It's a huge step for me. The current owner has the entire building set up through HUD for the elderly and disabled and I am looking to continue that model. I had a meeting with HUD to see what they would need to transfer the contract to me and received "Exhibit 2" for Assignment of Housing Assistance Payment Contract. It outlines 27 items they want. It then goes under review for 30-60 days before they approve or not. I'm sure several people have navigated through this. I am looking for any advice or pointers to get these 27 items knocked out. Any help would be appreciated!

HUD did explain some of the items and they said they could help with some of them, particularly the forms. I was wondering if anyone had a packet they had submitted they would share with me for an example.

Also, HUD advised me at first I could do a self-assessment for the Capital Needs Assessment, but after speaking with their director they are now requiring me to have one done by someone on HUD's approved list. What has your experience been when someone comes in to conduct a CNA?

Thank you in advance!

 Thank you Jeff!

Should I post this elsewhere?

Anyone deal with HUD? I was told initially that I could self assess a Capital Needs Assessment, but now they are telling me they are requiring a company to do it at a cost of several thousand dollars for the report. I was also told that the previous owner signed a HAP contract and the new owner (me) would be obligated to continue that contract until 2031. Someone has had to have dealt with this before. Any insight?

I just sold my one and only SFR after holding for 16 years. I have a 1031 exchange set up and am under contract to buy a 20 unit apartment complex. Big step. The current owner has the entire building set up through HUD for the elderly and disabled and I am looking to continue that model. I had a meeting with HUD to see what they would need to transfer the contract to me and received "Exhibit 2" for Assignment of Housing Assistance Payment Contract. It outlines 27 items they want. It then goes under review for 30-60 days before they approve or not. I'm sure several people have navigated through this. I am looking for any advice or pointers to get these 27 items knocked out. Any help would be appreciated!

Back in 2005 the house just down the road from me went up for sale. It came with ~22 acres that butts up to our current residence. We were offered the residence first and bought it as is via FSBO. My mom ended up moving in and we have been renting it to her for less than our mortgage payment on the property (I know, you shouldn't go negative on a property but it is my mom). Anyway, she is now moving out and I have to decide if I want to sell the house or rent it out. The residence and acreage are on two separate tax id parcels so I would not have to survey the acreage off. I do plan on keeping the acreage regardless of what I decide.

Some of the numbers:  I bought the house and acreage for a total of $125,500.

I currently have an ARM which the rate is at 4.125%.

My monthly payment which includes T&I is $579.33

Balance is currently $48,368

The house is assessed at $91,700 for tax purposes

House sits on 2 acres

House is approximately 1,500 square feet, 3 bedrooms, 1 bath

This house is located in the country

The house is old (50+ yrs) and the septic is a conventional system.  I just had it pumped and it did pass inspection, however I know it's just a matter of time before it will have to be replaced.  It's grandfathered in as a conventional right now, but when it has to be replaced it will have to be a mound system.  I estimate it will cost $15-20K to replace.  

Do I rent the house out and replace the septic when needed or sell outright and let the septic be someone elses problem?  If I rent, how much rent can I expect?  So many questions.  I have been a landlord for 13yrs, but I feel like it doesn't really count because it was my mom renting from me (never had a missed payment ;).  Any help would be appreciated!!