All Forum Posts by: Michael Slockers

@Chavis Atkins just reading this post. Did you get the house and what can you share with us one year later? Did the jacking and poly foam do the trick? What was the total price tag, and most important, what did you learn?!

@John Lowry Just to chime in, and I think everyone has already made some good points. My first question would be why it has been on the market for such a long time. Regarding the rental questions, if you can provide a clean, safe, affordable place for people to live, I think turnovers will be minimized. This of course is also predicated on proper tenant selection. I like the idea of getting a Property Manager if you're that far away. 

How many other rentals do you have? If none, how are your other investments performing? Even with turnovers, your return on this one sounds pretty good.

2 additional points that may accomplish your goal as well: 1. research delayed financing. if you purchase through some other means, you can essentially do an immediate refinance (into your conventional loan)and get up to 100% of your purchase price back out. LTV rules still apply but are based on appraisal, not just on purchase price. 2. Depending on your lender, you may be able to do an instant HELOC at closing to access your down payment plus additional equity. LTV may apply but I know of local Banks who will lend up to 100% of appraised value in the form of a HELOC. The rate on these is typically a little higher but still very reasonable.

@Dustin Davis My understanding is that with FHA, the PMI never automatically drops off - you're locked into PMI for the life of the loan.

Conventional loans are not the same. And there are definitely low-downpayment conventional options available.

@Jaime Brame Not sure I can help but if you'd like to chat just message me!

Hey @Jaime Brame

It is a little difficult to follow what your exact situation is, but have you considered a HELOC on the house if you need access to cash to fund your next deal? Some banks are offering intro HELOC rates at 2%. Not sure how much equity you may have...

Some relevant questions:

1. How much equity do you have?

2. How long have you owned the house?

3. How much downpayment would you need on your next house and are you sure you couldn't do conventional or FHA financing on it?

Let me know if I can help out. I saw your name on the Tulsa meetup list.

Cool I'm gonna try to make it! Thanks @Deren Huang and @Steve Gregory

You all lucked out because @Steve Gregory is the man!

I have one Sec 8 in Tulsa and the initial inspection requirements were a pain, but overall I'd say pretty fair. It forced me to improve the property beyond what I wanted to, but the end result is only a better property. 

I don't necessarily agree with folks saying Sec 8 is going to get you lower rent. I'm getting full rent, and here is how:

1. The landlord sets the rent, NOT the housing authority. For example, my rent is set at 700. The rent must be considered a fair market rent (no gouging, obviously)

2. The housing authority pays a SET amount based on the tenant's verified income. In my case, i think the housing authority (direct deposit every month) is around 300. If the tenant made less income, they would qualify for more from the housing authority.

3. The tenant has a lease agreement for the full amount (700) but is only required to make up the difference between the full amount and the THA amount.

4. As others have wisely recommended, you must still screen your tenant. Doesn't matter if it is Section 8, it doesn't matter if you have property management, I think most landlords here know that screening and/or interviewing the tenant in person is the most tell-tale predictor of success.

5. I have heard that Section 8 tenants will stick around longer. I hope that is true but have not had mine long enough to find out yet.

6. There is an annual inspection by the housing authority to ensure the property stays in a high quality condition. These standards are listed publicly on the housing authority websites, but include: central heat, no chipped paint, no trip hazards, screens on all windows, every light functioning, etc. 

Hope that helps! Myself, I'd do it again but my non Section 8 rental performs pretty well too, no major complaints.

Way to go for planning this and getting real with the numbers @Donnie Martens!

What level of distress will you look for in a property? The worse the condition, the better the deal, but of course if it is too bad, the bank's won't loan (for primary residence) and the work will be harder to get complete while you live there!

Either way, best of luck and look forward to updates!

I've got a referral I'll PM ya!