All Forum Posts by: Cal Rohrman

@Cal Rohrman - You can legitimately rent things like washer/dryers to SEC8 tenants, but be careful. They need to be legitimate transactions. To rent a washer/dryer from a rental center in my market is only $75. I generally rent them to tenants for $50 if we have them. $200 is way off market. Read your HUD contract - the HAP Agreement - to be sure you aren't going to violate it. SEC 8 sets the tenant's budget based on the income they report. If the tenants has an extra $200 available to give you she most likely 1) is hiding under the table income from SEC 8 or 2) hasn't an add'l income producer living with her who is not on the lease.

SEC 8 typically pays market rent. Does your unit have a higher bedroom count than her voucher? If so, that's the problem. The tenant can get approved for a higher bedroom size, but the tenant must have enough income to be able to afford it.

Does this tenant pay any portion of the $900 rent they approved? NOTE - Her voucher amount is not $900. That's what they approved for her to live in your unit based on 1) their determination of the market rent for your unit for similar properties of your bedroom size 2) the affordability of the rent plus utilities of your unit based on her income and 2) the max benefit for the bedroom size of herb voucher for your market. If she had more income, they would approve a higher rent. If she is not reporting, make her.

If you can answer these questions I can provide more guidance. It would be better to get the SEC 8 rent approval number higher.

1) What is the number of bedrooms on the tenant's voucher? You should have a copy of this with her application. If not, call the SEC 8 office and anyone can look that up for you.

2) How many bedrooms are in your unit?

3) What kind of property is it? SFR. Apartment? How many shared walls?

4) What utilities does the tenant pay vs you?

5) How long has the tenant lived in the unit? If less than 12 months, what was her monthly household income at the time she applied? If more than 12 months, what is her monthly household income now?

6) What is the real market rent for your unit based on non-SEC 8 rent comps?

Hi Patti! Thank you so much for your help. To answer your questions. I tried charging her for the washer and Dryer but she has her own so I am unable to do so. I don't have a copy of her voucher, I am deffinitly going to ask for that now. She has been living there for 7 years paying $900 with no complaints but ever since I bought it just a bit ago I plan on upping the rents. It's a Duplex and she currently rents out one side. She is in charge of paying all utilities even lawncare. I will also ask for her monthly household income as well. Based on Section 8 comps It ranges from $900- $1,000 but this is the only Duplex that has a fenced in back yard.

Thank you so much for helping Patti, I really apperciate it!!

0 Votes

Hey guys, I have a dilemma. I am currently creating a new lease for my "section 8" tenant and her voucher is only for $900. I want the rents set to $1100 and she is willing to pay the $200 out of pocket each month. I have seen in the past that you can create a second lease for a washer and dryer to make up the difference but she has her own washer and dryer. Do you guys have any other reccomendations that I can create an all new lease under. She does not want to get in trouble by section 8 and I want to do this a legal way. Any suggestions will help! Thank you guys in advance.

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Who has experinece investing in Milwaukee?

I heard you can buy 20-40K properties and rent them out for 900-1000

It seems to good to be true.

I didn't plan on investing in SFH but those seem like to good of deals to pass up on!

let me know what you guys think.

3 Votes

Milwaukee, Wisconsin

Actually I am just asking them to leave and they are being responsive. Their are reasons behind this but to long to type out. Everythig is going smoothly and I have their security deposit but I just wanted to ask if I can negotiate with them to see if we can meet somewhere in the middle because I have no proof of them ruining things.

Do you guys think I should ask her to clean all the carpets, fill in all drywall, and make sure all appliances are properly working? Is there anything else I should add?

Thanks for your guys feedback I really apperciate it.

0 Votes

Hi guys,

I'm currenlty evicting a tenant on a property I just bought. They have been there for 3+ years and claim they do not have the checklist of general conditions from initial move in. I contacted the previous owners of the property and they do not have one either. What do you guys suggest I should do?

Should I negotiate with the tenant and come to an agreeement? The place is not in great shape, like the current landlord said it was before she moved in.

Any suggestions would be much apperciated!! Thank you

0 Votes

I personally, would not go thorugh with that deal.

You will be paying 30,000 out of pocket ( Down payment and repair cost)

with cash flow of $263 per month -> $3,156 per year that brings your NET ROI to 10.5%

Is it worth it for a SFH and also the headaches from renovating??

Thats the way I just looked at it. I'm still learning myself so take that information with a grain of salt.

I hope that helps

0 Votes

Hi Guys!

I closed on my first investment property, and its a section 8 duplex. The deal was to good to pass up.

I did'nt plan on section 8 being my first investment deal but it just happened that way.

Do you guys have any reccomendations on where to come up with a good lease. They are good tenants but I just want to make sure I'm covered.

Also, if you guys have any tips or information on section 8, any help would be much apperciated!

Thanks fam!

2 Votes

Hi guys,

I am closing on a duplex tomorrow that rents our for $1850 a month. It is currently occupied by section 8 tenents whom have lived there for 5+ years. The home appraisal came in 30,000 more than what I am buying it for. Do you guys think I should play it out and collect cash flow or should I put it back on the market and sell it for what it appraised for?

0 Votes

All Forum Posts by: Cal Rohrman

Cal Rohrman has started 18 posts and replied 39 times.

Post: Investing in Milwaukee

Post: Creating second lease

Post: Creating second lease

Post: Investing in Milwaukee

Post: No Landlord-Tenant checklist

Post: No Landlord-Tenant checklist

Post: Analyze my deal - single family rental

Post: Closed on first investment property!

Post: Help with raising rents