All Forum Posts by: Snehann Kapnadak

@Les Jean-Pierre Thanks for the comment! Yes I've heard that you can't raise rents without going through a strict process. Good to know about the inspections too.

@Ben Roddey Great advice, thank you. Would you recommend a new investor get into Section 8 rentals if they find a team who's had a lot of experience in that niche? Thanks again!

Hi All,

Hope your week's are going well!

What's the general consensus on newbies investing in section 8 rentals? Please pardon my ignorance and naivety, but I'd love to hear what people think of this plan and all the potential risks involved. Say I (as a newbie investor) want to get involved in a multifamily deal that involves Section 8 tenants in a market that I've vetted has opportunities for growth (my personal market is too expensive). I do my due diligence, vet and find a good property management team, no easy task at all but suppose I manage to find a great team, who's had experience handling Section 8 and who I trust will do a great job handling the day-to-day. Is this sustainable? What should I be looking out for? I'm relatively young and new to REI--meaning I have a longer timeline and will generally have a higher risk tolerance. I would be willing to hold on to this property for a while and deal with the rollercoaster I've heard that comes with Section 8.

My thinking is that I'd be able to find a multi-family deal at a lower price point, thereby spreading the risk of tenant turnover across several units. This would be a cash-flow play with little appreciation, unless something amazing happens, but it would yield solid cash flow for me. Ideally this would not be my only property, I would continue to invest that cashflow in B and possibly A class properties as well to diversify my portfolio in terms and spread my risk.

Additionally, I've been told that you live and die by my property manager. So if I properly vet them and if they have a ton of experience handling Section 8, then they would be managing the day-to-day, while I would get to collect higher returns. Does that seem like a good plan?

Again, please forgive me for the naivety, but I'd love to learn more from what everyone thinks. Thanks!

@Account Closed Good to know, thanks again! Do you have any experience with Tru Loans by any chance?

@Account Closed Oh I've been paying my student loans on time. I just still have an outstanding balance on them that will probably take me another 2-3 years to fully pay off. So they'll weigh in on my debt-to-income ratio, but I'm hoping that my good credit will convince lenders to take the gamble and give me a lower rate. 

I haven't thought of US Bank but thanks for the recommendation. I'll check them out and will schedule a call. Do you know if they are friendly to Out-of-state investors? How has your experience been with them?

Thanks again for your help!

@Account Closed Got it. So the potential trade-off would then be that I would pay a higher rate? Would a higher credit score outweigh a larger debt-to-income ratio? I'm hoping that it does, but then again I don't know. Do you have any insight into that?

@Peter Tverdov Do you know if they give out-of-state loans? I've scheduled a call with them for later today, so hoping I hear more information about their overall process and procedure. 

@Peter Tverdov Exactly what I needed to hear, thanks a lot. Have you worked with Fulton Bank? If so how has your experience been with them?

Hi All,

Hope your week's going well. I'm looking to get pre-approved for a home loan and get my REI career underway (get "locked and loaded", as one podcast guest called it!). My goal is to try and build a good relationship with a local bank to ease the process of financing down the line as I (hopefully!) acquire more properties.

I intend on buying out-of-state through a turnkey provider or through Roofstock, so the bank I would work with would ideally be very investor-friendly and willing to work with me on this investing gameplan.

Does anyone have good recommendations for banks in the Central NJ area? Woodbridge, Edison, Metuchen, etc. Or any banks I should absolutely stay away from would be helpful as well :) I have some student debt, but great credit, so hopefully that will help open some doors to some lower rates!

Please let me know, thanks! 

@Dan Krupa I'm wary of KCKS because I've been told that it's not as landlord friendly as KCMO, schools are generally better on the MO side, and there's been more investment on the MO side as of late than on the KS side. I'm sure there are a lot of great properties on the KS side but as a new investor, I think I'm pretty set on MO.

No need to apologize! :) @Dan Krupa KCMO please. As a new investor, I'm definitely wary about KCKS.