All Forum Posts by: Ron J.

Eddie T. I'm on my 2nd insurance company and have been quoted by 3 different insurers now. My current plan being the cheapest with the most coverage. The problem is the replacement cost vs the property value. They insure the replacement at 170k when value is only actually 44k. My liability coverage is set at 1 million. Do you have any recommendations for cheaper insurance? Thanks

Ralph Pena I plan on getting my own place after getting a few rentals to offset some of the mortgage. I want to make sure I still have the cash available to still get the properties outright. I use The Redfin app and have a saved search that sends me alerts on my phone when new listings come up matching my requirements.

Ralph Pena I am currently a Machine Operator for a packing company at my full time job. Which usually consists of between 45-55 hours per week. I'm pretty comfortable doing the rehab myself for the most part, besides certain electrical work and roofing. I'm looking to expand my portfolio as quickly as I can. I left my apartment and I'm fortunate enough to be living with family at the moment to save up for investment rentals. I have enough cash now to buy properties outright in the area I'm interested in. I will use that money to buy and cash out refinance once rehabs are complete.

Thanks @Aaron Carter. I have read both the Section 8 Bibles and feel that they went extremely overboard with their operation. I'm honestly not sure how they kept tenants in their units. Section 8 tenants have the freedom to pick the best available property for them. I don't know too many people who would want to live in the properties they were renting out, with better options available.

Thanks @Rafael Floresta. That was one of my big concerns. I do not want to be stuck at 4 properties. My bank (Citizens) was great with my original refinance but the loan officer also informed me that the lending restrictions are tougher after #4. He also said that after 4 they will not count my rental income from the properties until they have been rented for 2 years. I'm not sure if my job salary alone will allow me to keep borrowing without the rental income included.

New to the site and want to share the numbers on my 1st rental in Philadelphia.

3 bedroom 1 bath Row Home

Cash Purchase price after closing - 19,500

Rehab costs - 13,500

Total investment - 33k

Appraised Value after rehab - 44k

Cash out refinance - 33k at 4.12% 15 year fixed

Rent yearly (section 8) - 11,160

Mortgage & taxes yearly - 3,732

Insurance yearly - 1,080

Any opinions on how these numbers will hold up in the long run? Currently rented in a 2 year lease. Rent at 930 per month, $923 guaranteed from the housing authority, tenant pays $7 per month. 

New here to BP and currently have 1 property (3br 1 bath) that has been rented for 8 months now through Section 8 in Philadelphia. Closing on my second property May 28th (2br 1 bath). 

I was wondering if anyone has any good/bad experiences with Section 8? I'm happy to say so far my experience has been great. The best part in my opinion is the guaranteed check each money, at least most of it through the government.

For the total investment price, and the amount of rent section 8 is willing to give, I wouldn't consider renting any other way at this point. Anyone have any advice on this subject? Thanks again

After finding the bigger pockets forum I have been reading and trying to gather as much info as I possibly can. It has already been a great help. My name is Ron, I'm 26, and currently have 1 investment property located in Philadelphia that has been rented through section 8 for the past 8 months. I close on my second property on May 28th also in Philadelphia and also will be rented out through section 8. Any advice from others who have successfully rented section 8 would be greatly appreciated. I currently have a full time job so only get to work on my properties on the weekends which slows down progress tremendously. My plan is to go full time at real estate investing when my rental income can match the salary that I am living off of at my current job. I pay cash for the properties and after it is ready to be rented I refinance for only the amount that was put into the house to keep the mortgage low and monthy profits as high as possibly all while retaining enough funds to be able to get another property. My major concern is that after 4 refinances I was told the borrowing restrictions get a lot harder. My question is after my 4th property how hard will it be for me to refinance again? Or should I be looking into some other types of loans? Any Info would be greatly appreciated! Thanks!