All Forum Posts by: James Elden

I've never bought a house before with cash so I'm a bit unfamiliar with this but I've been doing some research, basically I would be buying a cheap investment property for $40k or less with cash but my understanding is that it is possible to then get a mortgage on this to pull money back out? I initially read about this in a book but when I search online about this it's hard to tell if what they wrote applies to any house or only houses over $100k. Assuming the house is in livable condition, rented out to a tenant and I have decent credit, should this be relatively straightforward to do or are there pitfalls to watch out for?

I'm looking to buy some low cost houses in the Little Rock area, as well as possibly other areas of Arkansas, was wondering if anyone knows of some property management companies that deal with section 8 as well as non-sec8 low income housing? Thanks

Ah ok thanks, that makes sense, glad to hear this!

I don't exactly mean liable but the post title only has limited space to type what I mean. I have never invested in a sec 8 property before but have been reading up on it so I'm familiar with the potential pitfalls. I realize it is possible to be completely kicked out of the program, as an investor, for various reasons. If I were to invest in a sec8 property I would prefer to pay a property management company to handle everything for me but what I'm unclear on is, if they were to do something that caused issues with section 8 would it also kick me, the investor, out of the program permanently? The property would be owned by a corporation or LLC and I would be as hands off as possible.

Thanks for the replies, glad to hear this is viable.

I'm familiar with the pro's and cons of sec 8 and may consider it in the future but I would like my first property in one of these states to not be section 8 and am wondering if it is viable to invest in a single family home there that is under $40,000 where there would be enough interest from non section 8 tenants. Although I don't live in either state I have spent time in both Arkansas and Oklahoma to get a feel for them and think they are both places I would be interested to invest. I realize that any house in this price range is probably not going to be the most attractive to a non sec 8 tenant but wanted to get perspective from someone with more knowledge as to whether this is potentially viable. Also, if you think it is not viable in either of these places but know of somewhere where it is for houses in this price range I would be curious to hear that as well. Thanks

I think there is a legal matter in here also, potentially. By you not being involved and trusting them to maintain standards agreed upon in advance you would probably be more protected from any potential Fair Housing Act violations by the property management company. That alone is why I am thinking of using a property management company to find a renter for any future properties I buy.

I thought about doing this with a house I lived in but ended up selling as I decided I would rather take the cash and buy cheaper investment properties in another state. As far as the issues with the house, it sounds like you would need to make a few repairs to attract a quality tenant, so fixing the garage door and shower I think should be priorities. I would just remove the washer and dryer and let the tenant get their own. Backyard shouldn't be an issue unless it's an obvious safety issue and renters are going to be much more tolerant than buyers, on average, of small imperfections like rough cabinets, paint issues, etc. I was able to have a property management company come out and look at my house before I decided to sell and they told me what they thought as far as things I would need to address before renting it out.

Honestly it sounds like the poster is trying to start some kind of political argument. Section 8 has it's positives and negatives, any real estate investor should be aware of this already, acting like it's all roses is a bit ridiculous.