All Forum Posts by: Oliver Martinez

Quote from @Sheryl Sitman:

You will be well served to enter into this strategy with as much knowledge possible on how to maximize rent with section 8, how to vet tenants, especially if you're going to be sharing a building with them, and to do a reality check of whether your strategy will really work. Happy to connect you with a great Philly consultant who has built a large section 8 portfolio of long-term tenants at maximum rents. Nothing can be experience in this business. Learn from others.

I’d love to connect. 

Hey everyone,

I’m a first-time house hacker in Philly (zip 19121 — Brewerytown area), currently under contract for a triplex. Each unit is a 2-bed, 1-bath and I plan to live in one unit and rent out the other two. I’m considering renting to Section 8 tenants but wanted to hear from experienced landlords in Philly who’ve done this.

On the PHA site, the SAFMR rent cap for a 2-bedroom in 19121 is $1,830 (including utilities). My setup is:

• All units separately metered
• Electric-only (no gas)
• Tenants would pay their own electric
• I’d likely cover water/sewer since Philly usually keeps it in the landlord’s name

I know PHA subtracts utility allowances before approving the rent, but I’m trying to get a real-world sense of:

1. Are you able to get close to that $1,830 cap in practice?
2. What kind of rent do they actually approve for renovated units where tenants pay electric?
3. Why did you choose Section 8 over traditional tenants in your Philly rentals?
4. Any downsides or surprises I should be aware of?

Appreciate any insight. I just want to make sure I’m preparing for worst-case cash flow but not leaving money on the table if Section 8 can bring stable income close to market.

Thanks in advance!

Quote from @Nadiyah M.:

The entire city of Philly is good for rental.  The best and worst neighborhoods are staying rented.  There is no shortage of renters out here and Section 8 is my personal favorite for my own properties.  

Do you usually get anything close to the cap that’s advertised on the PHA website?

I’m about to move into a triplex I just bought as an owner-occupant — I’ll be living in one unit and renting out the other two.

This might sound like a small detail, but I’ve been thinking a lot about how to handle tenant interactions now that I’ll be living in the building:

• Did you let your tenants know you’re the owner?

• Or did you present yourself more as a property manager/representative to keep it professional and protect boundaries?

I’d love to hear how other house hackers navigated this.

Also — curious how you handled rent collection and expenses:

• Did you set up a separate checking or HYSA just for the property?

• How did you keep things clean for taxes and budgeting without it getting messy with your personal finances?

I want to start off on the right foot but also not overcomplicate things.

Would appreciate any lessons or best practices from folks who’ve been through it

Hey everyone,

I’m a 24-year-old first-time homebuyer and I’m under contract (or close to it) for a 3-unit multifamily in Philly. I'm planning to live in one of the units and rent the other two — classic house hack strategy. I'm going FHA, and my credit score is over 725 with a $90k salary. I have about $45k in liquid savings.

Here’s my issue: I’ve found that many first-time homebuyer programs and grants are for 1–2 unit properties only, even if you're an owner-occupant. A few allow 3–4 units but still have restrictions or aren't compatible with FHA.

Has anyone here gotten down payment or closing cost assistance on a 3 or 4 unit property using FHA while living in one unit? Specifically in Philadelphia (or PA in general), but even if you’re in another state and pulled it off — I’d love to hear how you did it.

Would also appreciate recommendations on lenders or programs that worked for you, or even strategies (like seller assist stacking, rate buydowns, etc). This deal has potential, but I want to make sure I’m not leaving money on the table.

Thanks in advance

Quote from @Michael Smythe:

@Mario Rodriguez we have a lot of out-of-country and out-of-state clients investing in Detroit area.

If you can find the right team it goes well.

The challenge is finding that team, otherwise you'll get ripped off and lose most your money.

PM us for more info if interested.

 

I am a brand new investor, looking to dive into the Section 8 game in Detroit. I have a handful of properties I have found, all 75k and under. I understand it can be very difficult to get a mortgage for that low, i was wondering if anyone in here can help me out! I had previously had a lender offering 15% down but he is not licensed in MI, I was previously looking in AL.

Quote from @James Wise:

Quote from @Mario Rodriguez:

Hi,

I saw some gurus offer classes to invest in out of state section 8 rentals. Also, I read Greene’s and Turner’s book to invest out of state. Though it sounds straightforward to hire a PM and get the property rented, for some reason it gives me cold feet. Is this doable and great or have you experienced a headache?

Best,

Mario

 Welcome aboard big dawg.

I am a brand new investor, looking to dive into the Section 8 game in Detroit. I have a handful of properties I have found, all 75k and under. I understand it can be very difficult to get a mortgage for that low, i was wondering if anyone in here can help me out! I had previously had a lender offering 15% down but he is not licensed in MI, I was previously looking in AL.

Quote from @Michael Smythe:

@Oliver Martinez S8 Housing Commissions typically pay on time.

Once a year maybe, someone makes a mistake and there are delays.

 

I am a brand new investor, looking to dive into the Section 8 game in Detroit. I have a handful of properties I have found, all 75k and under. I understand it can be very difficult to get a mortgage for that low, i was wondering if anyone in here can help me out! I had previously had a lender offering 15% down but he is not licensed in MI, I was previously looking in AL.

Quote from @Maureen McCann:

Hi Mario,  Investing out of state is very doable. There are turnkey companies in the US that provide investors a completely renovated and tenanted property.  I am happy to direct you to the reputable companies. DM me and I will give you the scoop.  

Cheers!

I am a brand new investor, looking to dive into the Section 8 game in Detroit. I have a handful of properties I have found, all 75k and under. I understand it can be very difficult to get a mortgage for that low, i was wondering if anyone in here can help me out! I had previously had a lender offering 15% down but he is not licensed in MI, I was previously looking in AL.

Quote from @Alyssa Wright:

You should be 100% fine as long as you do the proper research into your agents, pm's, etc... Most of the investors that other agents I work with are out-of-state and they've had no problems on either end! 

I am a brand new investor, looking to dive into the Section 8 game in Detroit. I have a handful of properties I have found, all 75k and under. I understand it can be very difficult to get a mortgage for that low, i was wondering if anyone in here can help me out! I had previously had a lender offering 15% down but he is not licensed in MI, I was previously looking in AL.