All Forum Posts by: Kristopher Hanks

@Joseph Catalino I recently completed a BRRRR in the City of Cleveland. All but the refinance part. I would be willing to give you some insight on the numbers and my experience. The return on investment is really good. I was able to get it rented in 2 weeks. I also have contacts and connections that I can give you.

@Timothy Demry Cleveland can be great to invest in. 

@Brad Jordan If your tenant is in fact a section 8 recipient, there should be a HAP agreement in place with the local county housing authority. Section 8 will only do 12 month leases. When the lease expires a new 12 month HAP lease is required to be signed by the housing authority and the owner. You will need to contact the local county housing authority and notify them that you bought the property and you will be required to submit the change in ownership paper work. You will receive nothing from them until this is done. They will automatically put a stop payment on the property until they paper work is processed and approved. I just went through this process with Cuyahoga Metro Housing Authority. It will take approximately 2 weeks maybe three for them to process the paper work. Payments from the HCVP program are paid out on 2 dates per month, usually, like the 3rd and 16th of the month. You must submit a voided check with your paper work so they can set up the direct deposit into your account. That is the only way they will pay new landlords. If you have any questions you can send me a message. 

@Michael Herr No doubt! You said it. I have one section 8 house. Out of the 50 times I have called them, they have only answered the phone once. The message I left with her has been completely ignored. I am going to attempt some emails, because my property is out of state so I am not able to just walk in. Wish me luck! 

@Chris Ayers Sell, and deploy the cash in a higher ROI market. Turn the new property over to a PM and enjoy the time that is now freed up to find more properties to invest in.

@Michael Fish Once you have some education on real estate in general, then you need to understand the different types of investing. Next step is to pick the one type (mine is buy and hold rentals) that most interests you and start educating yourself on that one type more thoroughly. While doing that, save, save, save, to build your capital. And when you are at that point when you think you are just about ready to jump in, you're not! Create your business plan first that includes all possible exit strategies. Find and work for a mentor if possible. Secure some kind of lending, hard money, conventional, FHA, VA if you are a Vet, or a portfolio lender. Family investors can also be a possible avenue. Some would never involve family. I have family involved in my business. I'm just scratching the surface. Enjoy the journey.

@Account Closed, post the potential deal on here and get feedback. That is how you will avoid the big mistakes. Start focusing on the positive possibilities about how this type of investing can change your life. If you believe you are going to fail, believe me, you will. Get rid of that mindset and focus on the "WHY" are you thinking about investing in real estate. If it is that important to you, you will find a way to make it happen. But positive thoughts are necessary get going in the right direction. 

@Nataniel A. This is a decision that you have to make carefully and decide if it is a risk you want to take. I have a section 8 house in a "rough" and "violent" "war zone" as I have heard it called by many that live in the area. I am not denying the high crime rate there, but I am not going to live there. Many people need a nice home to live in and they don't make enough money to live anywhere else. I have security doors and a locking gate. I also had motion lights installed. I want my tenant to be safe. But safety is not guaranteed anywhere. With the rent offer I received from the local housing authority I am grossing over 36% on that property. The home was paid for with cash. No mortgage. Imagine if some point I can do a cash out on the property. My CoC return percentage would skyrocket.

@Nathanael Cotterell I use REI Guard as well.

@Brad Jordan I bought a section 8 preoccupied, which was part of the contract, from another company. I was not able to get my hands on any of the contracts until after I closed. I received them from the previous owner. My agent and a contractor that I use verified all the info for me. My contractor did the remodel on the home so he had inside info on the tenant and was able to verify for me that she had a section 8 voucher. That is why I proceeded. I would hope that a bank would not give you any false information about the tenant having a HAP contract, but I can tell you that where I buy they will never have a voucher participant on a month to month contract. The contracts have to be for 12 month periods only. So that raises my suspicions. Do you have any way of getting out of this contract? I'm not sure you are getting correct information.