Any other Section 8 landlords here? I'm ready to give this headache up.

[Lola]

I hadn't had a chance to read all your responses. Wow..thanks for so much advice.

First off, my renter on the first unit is 60 years old and takes VERY good care of things...she's the only reason I went with Section 8. The unit she lives in is a two-bedroom unit, but because she is single and alone, they only reimburse me for it as a single bedroom unit. The maximum I can get from them is 500.00/month.

As far as my cousin, the ONLY reason I let her move in because she was pregnant and needed a place to live, because she wasn't getting along with her sister she had been living with. I know she can't afford much, so that's why I offered her the place for 350.00/month.

I kept the second unit vacant for over two years, because I didn't want to deal with non-paying renters and I didn't want any young Section 8 people in there.

I tried to claim I was paying utilites, etc., but none of that shit helped me ONE BIT.

I might have a buyer for the place--he's an investor. I'm supposed to have a phone meeting with him tomorrow.

 

[casavino]

incorporate I just foreclosured on my property from NJ will never do they again unless i make 80k or have another income coming in...good luck

 

[Mackavellian Nupe]

Being honest with you I have several properties in the same slump I'm in Cali so the tax breaks and laws maybe a bit different but I'm sure if they are they are not by much.... Well here is what I did and you can decide if this works for you or not you can claim the credit from "rental property" but that is not going to back anything out of your "income" even if you are negative with that property (it's still not considered to be a business loss... so what you have to do is start a "sole proprietorship" business that manages the property now your loss will be written off as "business expense" with that in mind you can now claim ANY & ALL expense's and file with the "schedule A" ... to keep it short I made far too much money last year at my job alone not even counting the property income but by the time my "sole proprietorship business" loss was factored in I am now getting 8,300 back... If you need any info I can break id down for you a bit more but also if you start a "sole proprietorship" keep in mind that you can only be at a negative loss 4 years in a row before it is considered an expensive hobby...so what do you do ... you start another "sole proprietorship" within 3 years of filing the 1st one this will keep you ahead of the game but it's all up too you ...Most people might ask what if you get audited well that's what you go to h&r block for and buy the "piece of mind" for they will handle everything and all you have to do is provide receipt's for anything you claimed you lost... well with computers and things like that now a days it's not hard to produce them ...Just trying to help

Schedule A? (personal itemized deductions) Don't you mean Schedule C (or even better, Schedule E because unlike Schedule C, profits on the rental are not subject to self-employment tax)?

This is good advice. Only difference is I would set up a S-Corp for the properties and file my taxes seperately, doing it that way can allow you to carry over some loses that should help your tax bill. Holla at a good accountant, they are worth their weight in gold. GL with that bro.

If you decide to do this, remember that the shareholders must pay themselves a salary along with the appropriate payroll taxes (FICA, FUTA, and SUTA).

 

[Lola]

Well, since someone bumped this post, I can give an update...

I evicted my cousin this month. Move out date is Sept 30th.

The Section 8 lady is moving out of state in November.

I have the property set up to be transitional housing for guys coming out of prison. I have a managment company that will be taking care of it. I'm in partnership with another brotha who has his own units where he's done this. I'm hoping for the best.

 

[dbluesun]

i would have kept it section 8 and rented to two older tenants,,and like above if you do your taxes right you will come out ahead

 

[bigreg2007]

bump

 

[Cock Head Jones]

Well, since someone bumped this post, I can give an update...

I evicted my cousin this month. Move out date is Sept 30th.

The Section 8 lady is moving out of state in November.

I have the property set up to be transitional housing for guys coming out of prison. I have a managment company that will be taking care of it. I'm in partnership with another brotha who has his own units where he's done this. I'm hoping for the best.

Youve done your homework as far as checking out the mgmt company and having the paperwork looked at?

 

[Chitownheadbusa]

SOUNDS TO ME LIKE YOU HAVE MADE BAD DECISIONS
SECTION 8 IS PROFITABLE IF YOU DO YOUR HOMEWORK.

pretty much
the op basically fucked herself over...unless the rules are different where she lives.

that shit doesnt go down in chicago like that.
in most cases, tenants are required to pay 30% of their income in the form of rent. the other 70 comes from section 8. if they dont work....the section 8 basically fronts the mass majority of the rent..and the tenant pays shit low prices i.e. project rent prices. sometiems they dont pay anything at all.

the rent price is set up by the property owner/leaser.
the amount is fowarded to the tenant and section 8.
if the rent amount doesnt exceed the total section benefits....then the tenant can move in. they pay the 30%...sometimes more.

if the rent price exceeds the section 8 tenants available "funds"...then they have to move into something cheaper. the section 8 list was opened two times in chicago within the last 6 years. most of the people they kicked out of the projects got first dibs. the rest had to wait for up to 3 years.


they mostly give it to woman. most of them being single mothers. if you have a man living with you...or anybody else thats not recieving section 8...then section 8 will start to get all in your bizness...real heavy. strange huh? lol

but anyways.....my cousin owns a few court way buildings in chicago. 50% of his tenants are section 8 and he makes nice money. his properties are not in bad spots. he has a building in hyde park (near obama's house) and a few near the lake. the ones by the lake are a little ghetto....but the building is nice..and he gets paid.

 

[3rdfunk]

Well, since someone bumped this post, I can give an update...

I evicted my cousin this month. Move out date is Sept 30th.

The Section 8 lady is moving out of state in November.

I have the property set up to be transitional housing for guys coming out of prison. I have a managment company that will be taking care of it. I'm in partnership with another brotha who has his own units where he's done this. I'm hoping for the best.

I always thought it wasn't a good idea to deal with management companies unless you have say 6 or more rentals. I mean they want a certain percentage of your rental income and even more if you let them provide other services such as screening tenants, evictions, rent court, etc.

Are you maximizing the rent you can charge for the area where your property is located?

Also why are you paying utilities? The only thing I would pay would be water. If water bill isn't paid in this area it could cause your property to be sold at auction. Aside from that, electric and gas is on the tenant.

Also check this book out -----> Section 8 Bible
It's a good read on dealing with Section 8 and Section 8 tenants.

 

[Dallas Bueller 2010]

Has for the money aspect, I was told when I had my house to stay away from that shit, you better off just fixing it up and "flipping" property, which I did. Alot of landlords told me the shit aint nothing but trouble and headaches.

I keep saying women should do hair for side income, alot of money in that shit and since LOLA doesnt report he cousins income to the IRS its right up her alley, how the government gonna find out bout your cash transactions, unless you spend crazy.

Punch said his wife is a Stylist who has her own shop and some times makes up to $400 a day

Lots of money if a bitch is good at what she does.