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All Forum Posts by: Jamie O'Connell

Jamie O'Connell has started 26 posts and replied 118 times.

Post: Section 8 - My Experience Two Years In

Jamie O'Connell
Posted
  • Rental Property Investor
  • Elmira NY
  • Posts 120
  • Votes 121
Quote from @Craig Janet:

What's the process to evict a tenant who doesn't pay their small portion or otherwise trashes the place. 


 Unsure yet as I luckily have not had to do it. But I would assume it is along the same as a normal tenant. Which in NY means like 3 months of notices and then a court case and an additional two weeks past that even if you win. 

Post: Section 8 - My Experience Two Years In

Jamie O'Connell
Posted
  • Rental Property Investor
  • Elmira NY
  • Posts 120
  • Votes 121
Quote from @Mark Cruse:
Quote from @Jamie O'Connell:
Quote from @Mark Cruse:

Glad to hear you are doing well with this. I have a vast degree of experience in section 8 rentals myself. Its great to hear positive experiences because most dont seem to have them. Like you, I have had positive outcomes. It honestly depends on the landlord and their abilities for the most part. Many fail to understand screening, managing, understanding the culture and treating people with dignity.  You are doing things right and I can tell from how you present yourself you somewhat understand and respect the environment. Congratulations and keep up the great work because you are providing a wonderful service and positive experiences to the community that typically has negative experiences in housing oh too often.   


 Thank you! Yes I think that is why the Section 8 people always seem to be happy when I have a new property available because the amount of tenants I have had to take because slum lords dont take care of their property has been staggering. I wont say I go above and beyond on fixing up the places and making them jaw dropping beautiful, I still do them up enough to where I would be comfortable living there. I think that is a big thing that a lot of people dont understand. 


 Seems like you have learned certain concepts that workbut tend to escape even the most experienced landlords. For you to be in the game 2 years Im impressed and see you are headed to much bigger things. Your approach of fixing them up nice enough is one of several things some dont seem to comprehend. The best thing you can have is good section 8 tenants who respect and take care of your place. Treating them with respect and providing a good experience  keeps them there for a very long time; pushing your cash flow  and building your equity. The notion that slumlords believe their tenants will positively be receptive to living in sub-substandard sht holes while being treated with disrespect escapes me.  Either way its so refreshing to hear this work for others in this forum as opposed to people saying they are savages and need to be treated like animals. Back when I first joined BP, I linked up with an experienced low income landlord. We toured his units and he was horrible to his tenants. Then he advised me that If I rent to so called "these people" I need to put in animal cages. Again, its so refreshing to see the genuine side of this coin. Congrats again! 


 Thank you! Yes ive seen that too! I toured one slum lords building to possibly buy and the tenant took such good care of his unit but there was mold everywhere and the bathroom light (not the light bulb, the light itself) had gone bad I guess 5 - 10 years ago and the tenant was just using a lamp to shower with. Idk how they kept passing inspection. Anyway, I stole that tenant and moved him into one of my one bedrooms and he is one of the kindest human beings ive ever met. 

Post: Section 8 - My Experience Two Years In

Jamie O'Connell
Posted
  • Rental Property Investor
  • Elmira NY
  • Posts 120
  • Votes 121
Quote from @Mark Cruse:

Glad to hear you are doing well with this. I have a vast degree of experience in section 8 rentals myself. Its great to hear positive experiences because most dont seem to have them. Like you, I have had positive outcomes. It honestly depends on the landlord and their abilities for the most part. Many fail to understand screening, managing, understanding the culture and treating people with dignity.  You are doing things right and I can tell from how you present yourself you somewhat understand and respect the environment. Congratulations and keep up the great work because you are providing a wonderful service and positive experiences to the community that typically has negative experiences in housing oh too often.   


 Thank you! Yes I think that is why the Section 8 people always seem to be happy when I have a new property available because the amount of tenants I have had to take because slum lords dont take care of their property has been staggering. I wont say I go above and beyond on fixing up the places and making them jaw dropping beautiful, I still do them up enough to where I would be comfortable living there. I think that is a big thing that a lot of people dont understand. 

Post: Section 8 - My Experience Two Years In

Jamie O'Connell
Posted
  • Rental Property Investor
  • Elmira NY
  • Posts 120
  • Votes 121
Quote from @Jared Rebling:

Thank you for posting! We currently have just 2 section 8 tenants in our small 16 unit apartment complex. One has been there for over 24 years. She keeps her place very tidy and it is much appreciated. She didn't start out on section 8 but had to quit working due to health reasons. Most likely just what the program was meant for. Our other tenant also does a good job taking care of the place but he's only been there 3-4 years. We purchased the complex from my father who had many section 8 tenants during the 20 years that he owned it. He was NEVER good at tenant screening. Other than the first tenant I mentioned that we inherited with the place, he had others that were terrible. I am a huge supporter of screen, screen and screen those potential tenants. The more we can learn about them, the better chance we'll have of protecting our investment. Section 8 isn't a hassle for us. We never have to be there for inspections. Paperwork to be signed is mailed back and forth and we only do our own lease as a formality and an extra chance to go in and check out the apartment to see if we need to fix something. I don't believe section 8 in our area, here in se Iowa, will back pay for the time waiting for applications to be approved. They usually say what there's a waiting list for available funds also. No security deposit either. 


 That is great! I have always heard if you have a complex of type NOT to do full section 8 but I think maybe just enough to cover the carrying costs would be nice! Idk if I will ever get to a small complex but maybe one day I'll be lucky enough! 

Definitely agree on the screening! So many "gurus" tell you not to screen and thats a big no for me. If they dont pay their car note, their insurance or even just small cell phone bills I know there is a zero chance they will take care of my prop OR pay me. I definitely agree! 

As long as the Hap is signed they will back date it. I dont allow them to move in unless the paperwork side is taken care of by the tenant and Section 8. But it can take months for them to file the paperwork and do it and that is what we eventually get back paid for in a lump sum. From the sounds of it we are very lucky they do the security deposit. Im in the process of filling a new prop I have with section 8 (first one in a few months) so im hoping they still do the security deposit and the bonus payment. It wont last forever but I'll enjoy it while I can. 

Post: Section 8 - My Experience Two Years In

Jamie O'Connell
Posted
  • Rental Property Investor
  • Elmira NY
  • Posts 120
  • Votes 121
Quote from @Louis P Lessor:

Thank you for sharing your experience with section 8. I have never considered this avenue, but based on what you wrote, there are many good reasons to look more into it. 


 Im happy that I could give you some insight into it. Make sure to read all of the other comments as well. As you can see it's not always roses but that goes hand in hand with real estate sadly. 

Post: Section 8 - My Experience Two Years In

Jamie O'Connell
Posted
  • Rental Property Investor
  • Elmira NY
  • Posts 120
  • Votes 121
Quote from @James Gouveia:
I have had nothing but disasters with Sec 8 tenants.  They typically do not pay their portion of the rent, do not stay very long and without fail trash the property.  I am glad to hear others are doing well with Sec 8 but in my area it's a fast track to ruin.

 Sorry about your bad tenants! Tenants are definitely the main reason why I think a lot of people dont get started in real estate. Blows my mind that someone who is using your property can treat it so poorly! 

Post: Section 8 - My Experience Two Years In

Jamie O'Connell
Posted
  • Rental Property Investor
  • Elmira NY
  • Posts 120
  • Votes 121
Quote from @Reesey Ann:

great post! thank for sharing. 

We always use section 8 for our SFH property. Over the years, we have had some great tenants and some nasty ones. Our most recent tenant just moved out and did not keep a clean house so our clean up and turnover is taking longer than usual.

O wow! I just moved one tenant to a new unit of mine so I could update hers and she took two weeks to move but left behind an entire dumpster full of stuff.. I text her and was like you left so much stuff and she said just get rid of it and bill me. Not going to lie I was very shocked she offered to pay so I did clean it out and charged her for the dumpster and labor I was charged and she’s paying it off monthly. So it was a tad entitled but honestly not bad at all. Thought I was going to have to have a thrown down. 

Post: Section 8 - My Experience Two Years In

Jamie O'Connell
Posted
  • Rental Property Investor
  • Elmira NY
  • Posts 120
  • Votes 121
Quote from @Jay Hinrichs:
Quote from @Nathan Gesner:

That is an excellent post.

I would like to point out a couple things. First, you are making a mistake keeping the tenant who violated your no-pet policy and hasn't paid their share of the rent ($50 a month). I can assure you, this will cost you more money before it's over. Second, I think you are still looking at this experience through rose-colored glasses. Things have gone pretty well for two years, but it's only two years. I've had Section 8 tenants that were great for 3-4 years before trashing the place, stealing appliances, not paying rent, and eventually abandoning the property with over $10,000 in damages.

On a personal note, it chaps my hide that we have people in society that live off the backs of taxpayers for decades. I am willing to be dollars to donuts that most of your Section 8 tenants are able-bodied humans intelligent enough to get a job and pay their way through life, but they somehow manage to milk the system. They eventually get a sense of entitlement. This could manifest itself in additional damages and financial losses when they decide they don't want to put up with you any more.

Also, Section 8 does require more work setting up, renewing, increasing rent, etc. On top of that, the tenants are lower-quality, so it takes more work to maintain communication, enforce the lease, etc.

In my experience, the additional work and eventual losses erase any benefits of Section 8. I'm glad it's working out for you now, and I hope it continues into the future. I'm skeptical.


in most markets section 8 only allows one year leases.. and in my experience with 200 plus section 8 doors tenants move every 18 months they trash one house then go find another freshly rehabbed one.. of course each market will be different..

 So far so good, I did one year leases with everyone and then when it ended it just went to month to month but I renegotiated the monthly price with the section 8 rep. Not sure how it's done elsewhere but that is how it's done in my area. 

Post: Section 8 - My Experience Two Years In

Jamie O'Connell
Posted
  • Rental Property Investor
  • Elmira NY
  • Posts 120
  • Votes 121
Quote from @James Hunt:

Great post.  We have some properties with S8 tenants and others without.  My biggest issue with S8 has actually been with working with the organization.  My business partner handles the property management side of things but they can be difficult to communicate with at times.  The tenants for the most part are fine.  You still need to screen them thoroughly just like a market renter.  Once the process is in place, it is nice when at least the majority of the rent shows up regularly.  Definitely is more work to get things set up however.


 100% Agree. Our area is small so they only have 4 or 5 people in the program running it. Which is nice because you get to know everyone and they have more of a personal connection. However, they still have a ton of vouchers so it can take forever! 

Post: Section 8 - My Experience Two Years In

Jamie O'Connell
Posted
  • Rental Property Investor
  • Elmira NY
  • Posts 120
  • Votes 121
Quote from @Michael Smythe:

@Jamie O'Connell well written!

We manage almost 100 S8 leases and have over 24 years of experience - so we have a different perspective than someone like you who is so hands on.

Agree with @Nathan Gesner that you really haven't seen the BAD with a S8 tenant yet - hopefully you never do:)

Couple of points:

1) Most S8 Housing Commissions do NOT pay for security deposits, so you are getting a big bonus!

2) Have never heard of a 1-month bonus from S8.
- They must be pretty desperate for participating landlords in your area!

3) Fair Market Rent: S8 was originally designed for affordable housing, so included ALL utilities. As the program expanded over the decades, it now allows owners to decide whether or not to include utilities.
- Most S8 Housing Commission voucher amounts include all utilities. Each area has a table owners can use to calculate the deductions for utilities they do NOT want to include (or can't - like MFR with only one water meter). To avoid utility abuse, we always recommend NOT to include utilities in rent. Otherwise, an S8 tenant has no incentive to report a water leak or running toilet.

4) Give them an inch & they want a mile: tenants that aren't working, or barely working, have nothing but time on their hands to come up with ways to scam their landlords. $5 to these people is a bid deal! Letting lease violations go should be approached with caution.

Hope it continues to work out for you.

Thank you! To your point in number 3 - yes I have done utilities included for the sole purpose of being able to show as much money coming in for refinancing and for the banks. Now that I can afford to live a little I am starting to do new leases without any utilities included. Will drop my monthly income by about $150-$200 a month on paper but will absolutely make me more money in the near future. 

I wondered if it was just my area or if it was common for the sec deposit and the bonus. I will take both for as long as I possibly can! We both know without assistance sec 8 tenants will never come through with a sec deposit. 

yes the mile has been taken by a few people and I spent a year being a hard *** (as much as I can anyways) with sticking to my guns.