All Forum Posts by: Diane Sib

I didnt see anything where it was a hud lease, if so there are special rules regarding transfer, many investors forget to asks for the security at closing, and a foreclosure may not get, not all companies, keep in escrow, and even then cant release it without a court order, or release from seller, which might be a bank, which may not have it either, never assume, if you have existing tenants you inherited any money owed them when you bought, think of it as an addition lien, since they are great tenants you lucked out there, if you cant get original funds back put some into escrow as your costs to take over, which escrow is of course going to be accounted for on new lease, you usually have to honor old lease, but can sign new one with same lease terms, most states say how much you can change but usually nothing at first and later some rent increases, but must not change significantly such as utilities or pet deposits, a good point to buyers to get a copy of existing leases, to make sure you can live with them

I also noticed you mention price to buy if going section 8 route, are you planning on using section 8 funds to buy, there is funding there that most investors do not tap, from hud to buy and rehab houses to rent to section 8, if you estimate your rent on the conservative side you will be safer, allow for vacancy time as most dont either, if you are precertified hud it does get a tenant faster in most areas depending on market, just ask local hud how many vouchers waiting, also as a side note in some areas there are lots of tenants looking for 1-3 br, a larger unit maybe be harder to fill or may have more applicants with big familys, what some landlords consider a bedroom and hud does differs, if rehabbing make sure not to over hab for area

section 8 voucher program as there is more than one type of section 8, have a chart, search hud fair market rents, it changes from year to year, neighborhood, and age and condition of home, that will give you a range, a 3 br home is different than a 3br duplex,3br apt or 3br trailer, then, you have utilities, what is included for that rent, most landlords prefer to include water sewer and trash because they are leinable, meaning if tenant behind you can lose investment, next just because you have a number you want to get for rent or saw someone ask for rent, doesnt mean it will rent for that, some rents that are too high sit on market a while, that is also considered, that tells you again a range for market, the amount they will pay depends on tenant also, if tenant has a 3 br voucher, hud will figure a percent they contribute including all their utilities, then hud will pay the difference, say 900 market rent, tenants share might be 30%, that is 300 minus what the hud allows for heat, elect etc, so the tenant could end up paying you $100 and $200 for utilities,then hud pays the 800 difference, there is a chart for many variables, elect cooking, elect hot water, air, lights, a house with gas cooking maybe be different than electric cooking, and everything little item is why two could have different rents, most housing authorities can give you a better assessment if you contact them with interest in becoming certified, but 2 homes next to each other can be different based on what is in them, they can give you a specific rent in advance, the lower the tenants income the higher amount hud will contribute to meet the total value rent they determined

since its been revived, no you do not have to accept sec 8 in virginia, but since this original post 5 yrs ago many states and city have made it mandatory to accept as a form of income, and 3x rent as income has been tested and failed in some of those states, they have stated it is a form of discrimination against type of income, criminal background check does still stand, but only if convicted