Those are really tough numbers. 400 a month for CX maintenance and profit. Say you buy it and a year later the roof is bad and you need to replace it. That’s gonna be seven to $10,000. That would take you literally 2.5 years potentially to pay off before your back, making any type of profit, all the numbers are legit. I would just suggest you make your money on the purchase meaning you need to buy low. Great content.
@section8guy This is hands down the best video that I watched on section 8 investing. For someone considering getting into Section 8, do you recommend starting out of state or stick to your local state? Unfortunately the place that I live in (North of Atlanta) does not have anything less than 200K and it is hard to cashflow at that purchase price. I was considering buying in OH (Akron, Cincinnati, Columbus etc) but scared because I am out of state. Any advice?
Thanks for making this video! What percentage ranges do you personally budget for maintenance, capex, and, if any, for vacancy? Say on a house where you did lots of rehab work.
I got a question. I'm about to start college and i'm interested in investing in section 8 properties in the future. Once I build my credit score for 2 years, what are the odds that i'll be approved for a mortgage while being a a full time university student? I'm also planning to save enough for a 15-20% down payment in that time.
Houston Housing Authority takes HUD FMR and issues "payment standards" which are different. How to interpret a payment standard? It seems like an extra layer to confuse
The payment standard is the highest amount they will pay you for rent, based on the area where the zip code is located. So if you have a 3 bedroom and the FMR is $1720 for that area, then that's the max you could receive from HUD. Also please note that even if that is the cap, HUD also takes into account the average rent for similar homes in that area, so even if the max is $1720, you could potentially receive less in rent if the homes in that area are also renting for less.
Great valuable video. I feel more confident in taking action and getting started. I will reach out to you soon. I want to take action and start building passive income.
Great video, Rhett! What is the likelihood of not getting the rent increase every year from section 8? Also, what would you say is the avg cost for rental refinances for those $80-100k homes when the rates drop?
Wow this being my hometown is insane ! Great info also if you would be willing to have any additional hands with work in the area I’d appreciate an opportunity 🙏🏾
I'm slightly confused. Doesn't the Section 8 program Guarantee the $1,301 for the 3-bedroom? (Assuming its a vacant unit, and the section 8 tenant has a voucher and ready to move in)
@@section8guy Okay maybe you can answer this. Is it just as easy as purchasing a turn-key property, pass a Section 8 inspection, stick a section 8 tenant in there, find a property management company to look after them, and than just cash flow? If thats the case, how do people snowball to get to 20-30 units? It seems like i would run out of money if i just keep buying turnkey properties?
@@adameckhoff7970 No, its not even close to as easy as that. You need a very experienced team by your side to help you avoid all of the mistakes. The only way to scale is with capital. You can't snowball 20-30 units without sufficient capital
@@section8guy Okay so it seems like i need to buy a dump property out-of-state, yolo the dice with a contractor and fix it up, and then rent it out and refi, get my cash out, and go again? All while doing this out-of-state via phone calls?
How can I get funding for these deals I’ve seen all these section 8 investors trying to get someone to pay for there course I know the way but I just need to find lenders
Any mortgage lender will fund these deals, there's no such thing of a special mortgage lender who only lends to section 8 homes or vise versa because that would violate the fair housing laws. You can get funding for any investment home as long as the market rate rents make sense to the lender and of course the borrower is credit worthy. It's as simple as that. The lending company could care less where the rental income is coming from, whether it's from the Housing Authority program or from someone without a voucher. Please don't pay for a class to learn this stuff, you can learn Section 8 investing on your own.
@@JC-qu7iw When I say they specialize in section 8, I should have said that they specialize in smaller loans. You will be very hard pressed to find lenders who will finance your investment properties when the purchase prices are lower than 100k, 75k etc. I misspoke with the above comment as it relates to lenders. The tenant/renter's affiliation with any and all government subsidy has no bearing on an ability to get a loan. The purchase price though most definitely will.
@@JC-qu7iw Hi, thanks for the info, I have a few lenders but its very hard to get DSCR Loan at 15% or find a lender its like a needle in a haystack, i'm in south florida and I have contact even lender that I can find and the lowest Ioan option I got was $75K I even private lending. Do you know by chance any lenders that do under $75k.
We provide affordable housing to the public and we're a "leech". Sorry your Daddy failed you and didn't' teach you financial literacy. It's never too late to learn though...
The most information packed video in this space yet..
I'm glad!! Thanks for watching!
valuable info i didn’t know ppl listed the properties for cheaper but how can you get the rent to be maxed
Those are really tough numbers. 400 a month for CX maintenance and profit. Say you buy it and a year later the roof is bad and you need to replace it. That’s gonna be seven to $10,000. That would take you literally 2.5 years potentially to pay off before your back, making any type of profit, all the numbers are legit. I would just suggest you make your money on the purchase meaning you need to buy low. Great content.
Thanks for watching!!
How do you find the average utility price per zip code? What websites do you utilize to asses this accurately?
There arent any, you need to know from experience in the markets, or you can call the housing authorities directly
@section8guy
This is hands down the best video that I watched on section 8 investing. For someone considering getting into Section 8, do you recommend starting out of state or stick to your local state? Unfortunately the place that I live in (North of Atlanta) does not have anything less than 200K and it is hard to cashflow at that purchase price. I was considering buying in OH (Akron, Cincinnati, Columbus etc) but scared because I am out of state. Any advice?
Thanks for watching!! I suggest you start in an area where you have a TEAM!!! Market doesn't matter as much as having a team!
Thanks for making this video! What percentage ranges do you personally budget for maintenance, capex, and, if any, for vacancy? Say on a house where you did lots of rehab work.
Very minimal capex if we did a lot of rehab. maintenance about 10% of gross per year
Are you guys operating in Illinois?
No we do not!
this is amazing! I'm researching everything to get an idea how it works and want to start in December -November!
Awesome lets do it!!!
Awesome video.
Thanks for watching!
I got a question. I'm about to start college and i'm interested in investing in section 8 properties in the future. Once I build my credit score for 2 years, what are the odds that i'll be approved for a mortgage while being a a full time university student? I'm also planning to save enough for a 15-20% down payment in that time.
Slim - your credit may be fine, but your income will need to be strong as well
Question: If we cant assume the full HUD section 8 rent rates how much should we assume?
Totally dependent on the market. Some markets will pay 50%, some 80%
you can use a conventional loan for investing?
Yes!
Awesome video rhett! Super helpful. Looking forward to starting with you some day 🤝
THANK YOU! I call you some day.
Very helpful video Rhett, thank you!
Good! Thanks for watching!
Houston Housing Authority takes HUD FMR and issues "payment standards" which are different. How to interpret a payment standard? It seems like an extra layer to confuse
The payment standard is the highest amount they will pay you for rent, based on the area where the zip code is located. So if you have a 3 bedroom and the FMR is $1720 for that area, then that's the max you could receive from HUD. Also please note that even if that is the cap, HUD also takes into account the average rent for similar homes in that area, so even if the max is $1720, you could potentially receive less in rent if the homes in that area are also renting for less.
Maybe my lack of style is talking, but I don't see why you say that property around 7:26 has a beat interior. It looks pretty good to me.
Great valuable video. I feel more confident in taking action and getting started. I will reach out to you soon. I want to take action and start building passive income.
Lets do it!!
Great video, Rhett! What is the likelihood of not getting the rent increase every year from section 8? Also, what would you say is the avg cost for rental refinances for those $80-100k homes when the rates drop?
Likelihood of no increase is low!
Avg. Refi will cost between 4-5k depending on the product!
amazing... do you provide 1 on 1 coaching where you help out with getting contractors out to the area as well ?
100% - I actually own a construction company as well that specializes in section 8!
Wow this being my hometown is insane ! Great info also if you would be willing to have any additional hands with work in the area I’d appreciate an opportunity 🙏🏾
What about water and sewer cost
Tenant pays
I'm slightly confused. Doesn't the Section 8 program Guarantee the $1,301 for the 3-bedroom? (Assuming its a vacant unit, and the section 8 tenant has a voucher and ready to move in)
No, the biggest lie in section8. You will NOT get the full HUD payment
@@section8guy Okay maybe you can answer this. Is it just as easy as purchasing a turn-key property, pass a Section 8 inspection, stick a section 8 tenant in there, find a property management company to look after them, and than just cash flow? If thats the case, how do people snowball to get to 20-30 units? It seems like i would run out of money if i just keep buying turnkey properties?
@@adameckhoff7970 No, its not even close to as easy as that. You need a very experienced team by your side to help you avoid all of the mistakes. The only way to scale is with capital. You can't snowball 20-30 units without sufficient capital
@@section8guy Okay so it seems like i need to buy a dump property out-of-state, yolo the dice with a contractor and fix it up, and then rent it out and refi, get my cash out, and go again? All while doing this out-of-state via phone calls?
@@adameckhoff7970 No, dont yolo the dice on the contractor. Only use the best people
Any tips on finding partners?
Yes, only find a partner if its a last resort!
would you ever do a seller financed/subto deal for section 8?
Yes, just extremely hard to find, and virtually impossible to scale
Are you financing your rehab cost? Or paying that out of pocket?
We do both - most of the time rehab costs are paid out of pocket
The utilities gotta be way higher than 150 a month. What happens then? They come out of pocket?
They would yes
why doesn’t seller financing work
How can I get funding for these deals I’ve seen all these section 8 investors trying to get someone to pay for there course I know the way but I just need to find lenders
I work with multiple lenders that specialize in section 8, but I keep them exclusively for my clients
Any mortgage lender will fund these deals, there's no such thing of a special mortgage lender who only lends to section 8 homes or vise versa because that would violate the fair housing laws. You can get funding for any investment home as long as the market rate rents make sense to the lender and of course the borrower is credit worthy. It's as simple as that. The lending company could care less where the rental income is coming from, whether it's from the Housing Authority program or from someone without a voucher.
Please don't pay for a class to learn this stuff, you can learn Section 8 investing on your own.
@@JC-qu7iw When I say they specialize in section 8, I should have said that they specialize in smaller loans. You will be very hard pressed to find lenders who will finance your investment properties when the purchase prices are lower than 100k, 75k etc. I misspoke with the above comment as it relates to lenders. The tenant/renter's affiliation with any and all government subsidy has no bearing on an ability to get a loan. The purchase price though most definitely will.
@@JC-qu7iw Hi, thanks for the info, I have a few lenders but its very hard to get DSCR Loan at 15% or find a lender its like a needle in a haystack, i'm in south florida and I have contact even lender that I can find and the lowest Ioan option I got was $75K I even private lending. Do you know by chance any lenders that do under $75k.
How about newer homes in better neighborhoods?
You can run them the same way also to find cashflow. Need to make sure they cashflow, otherwise, no go!
Goated
Is the tenant responsible for landscaping
They sure are!
your video was so helpful I was able to run the numbers for Mobile AL.
Good!! Thanks for watching!!
are there any DSCR investors under $75k min?
Depends on the rate environment, right now, not really
Yay! A video on how to become a leech to the taxpayers.
We provide affordable housing to the public and we're a "leech". Sorry your Daddy failed you and didn't' teach you financial literacy. It's never too late to learn though...