Wishing you success bro. As you know, however, preparation, preparation, preparation . . .Hey man I take the L's in June...wish me luck...hoping/studying/praying for at least 165...
QueEx
Any other Section 8 landlords here? I'm ready to give this headache up.
- Thread starter Lola
- Start date
QueEx
Wishing you success bro. As you know, however, preparation, preparation, preparation . . .
QueEx
Thanks man...and yeah I am...I was supposed to take it pretty much around now but got shook...I'll beef up a little more then take an official prep-course and just see what happens...
I once owned a vacation home...times got a litle tight,so we decided to rent it out.
Of the 4 tenants we had over a 5 year or so period,3 were section 8 housing...who all abused the home in one form or another.The only decent tenant I had was the one paying out of her pocket.
I would never rent to another section 8 person again...actually I don't want to be a landlord again.
Was it worth it?...not by a long shot,and certainly not if you only have one house/unit.
Of the 4 tenants we had over a 5 year or so period,3 were section 8 housing...who all abused the home in one form or another.The only decent tenant I had was the one paying out of her pocket.
I would never rent to another section 8 person again...actually I don't want to be a landlord again.
Was it worth it?...not by a long shot,and certainly not if you only have one house/unit.
I own a duplex and I decided to make it Section 8. My renter I personally know, so my problem is not so much with her, but with the Section 8 system. I did my taxes, (my husband and I file married separately) and getting a measly 6,000 a year from Section 8 for that property caused me to lose my unearned income tax relief. Not to mention that I pay the gas and water for the house, because the renter can't afford to pay the gas--she's a 60 year old widowed lady who is unemployed right now, so really I don't benefit at all from this house.
My other unit is rented by my cousin who has a new baby and makes about 9.00 an hour, so I only charge her 375.00/month, which the fucking IRS will not know about. I'm sure they would try to tax my ass on that too.
Anyhow, any thoughts on being a Section 8 landlord? Do you think it's worth it? I might try to find investors to buy the property if I can. I'm sick of the hassle.
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
Exactly...
@ people sayin' she pays a grip at $9.00 an hour... My rent was never quite as high as yours but I've made it work on a similar wage... Nowhere in Las Vegas will you see rent for less than $400 unless there are bulletholes in the walls...
Thats how they basically destroyed some neighborhoods in cleveland, I am talking. destroyed!!!!!!!!
Its a shame, had too be our people wrecking shit. It a shame how you can have a nice neighborhood and then when you start that section8 or low income shit it goes to hell, even though its the same nice houses and shit.
Happened where my mother lives. 15 years ago you could walk down the streets, people took care of shit,etc. Now you can get robbed at 11am, and you better not go out past night.
One bar, which never had seen a murder in 50 years, turned into a thug bar, had 2 or 3 in like 6 months and was shut down.
The only good section 8 tenants I have seen our the old folks that keep too themselves.
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.
I own a duplex and I decided to make it Section 8. My renter I personally know, so my problem is not so much with her, but with the Section 8 system. I did my taxes, (my husband and I file married separately) and getting a measly 6,000 a year from Section 8 for that property caused me to lose my unearned income tax relief. Not to mention that I pay the gas and water for the house, because the renter can't afford to pay the gas--she's a 60 year old widowed lady who is unemployed right now, so really I don't benefit at all from this house.
My other unit is rented by my cousin who has a new baby and makes about 9.00 an hour, so I only charge her 375.00/month, which the fucking IRS will not know about. I'm sure they would try to tax my ass on that too.
Anyhow, any thoughts on being a Section 8 landlord? Do you think it's worth it? I might try to find investors to buy the property if I can. I'm sick of the hassle.
CONFUSED WHY ARE YOU NOT CHARGING THE OLD LADY THE MAX SHE AINT PAYING FOR IT.
( A LOSS FOR YOU) WHY ARE YOU PAYING HER UTILITIES, ( ANOTHER LOSS FOR YOU) JUST LIKE SHE CAN GET RENT ASSISTANCE SHE CAN GET ENERGY ASSISTANCE YOU SEEM TO BE MORE CONCERNED WITH HER PROBLEMS THAN YOU ARE WITH HER PROBLEMS MAKING PROBLEM FOR YOU MAYBE YOUR COUSIN SHOULD SEEK A BETTER JOB BECAUSE MAKING 375.00 IS A STEAL ANYWHERE. YOU ARE MAD AT THE WRONG PERSON ITS YOU WHO IS DOING IT TO YOURSELF. SECTION 8 IS GUARANTEED MONEY, AND NOT EVERY PERSON ON SECTION 8 IS GHETTO. YOU NEED TO GET THE MAX FOR YOUR PROPERTIES AND STOP PAYING THESE PEOPLES BILLS FOR THEM. OR EITHER GET WHAT YOUR GETTING AND DONT COMPLAIN.
i know another chick who just copped a 2nd property (other than her own residence) now that the housing market is down,,,
she says that she's not going to rent it to anyone (doesn't want to risk renters fucking it up),,, she basically cashed in her mutual funds, copped the crib, and plans on selling during her retirement age (35 years away)
she says that she will make a lot more money that way, than parking her money in mutual funds for all those years,,,
you thoughts on this strategy?
she says that she's not going to rent it to anyone (doesn't want to risk renters fucking it up),,, she basically cashed in her mutual funds, copped the crib, and plans on selling during her retirement age (35 years away)
she says that she will make a lot more money that way, than parking her money in mutual funds for all those years,,,
you thoughts on this strategy?
Informational Post
AMEN
Fist off I'm lost as to why you would get in to the section 8 or HUD type of business model!
Lower income renters are no money having pains in the ass!
Renting to family is your second mistake!
Let your cousin know it's time to grow up! The party is over and the same goes for the 60 year old!
Look it's your ass on the line when shit goes wrong!
They can both walk away(your tenants that is.)
Your stuck with a property in A depressed Real Estate market! HIKE THE RENT UP and put a for sale sign out on the lawn!
It's a business, your in it to make money not to be the Red Cross!
lawlessoutlaw
Banned
profits are always worth it, unless the work is too backbreaking.
I own a duplex and I decided to make it Section 8. My renter I personally know, so my problem is not so much with her, but with the Section 8 system. I did my taxes, (my husband and I file married separately) and getting a measly 6,000 a year from Section 8 for that property caused me to lose my unearned income tax relief. Not to mention that I pay the gas and water for the house, because the renter can't afford to pay the gas--she's a 60 year old widowed lady who is unemployed right now, so really I don't benefit at all from this house.
My other unit is rented by my cousin who has a new baby and makes about 9.00 an hour, so I only charge her 375.00/month, which the fucking IRS will not know about. I'm sure they would try to tax my ass on that too.
Anyhow, any thoughts on being a Section 8 landlord? Do you think it's worth it? I might try to find investors to buy the property if I can. I'm sick of the hassle.
First of all: Never rent to family or friends!!! That is one of the many lessons I learned from my father.
Right now you have income property clouded by "feelings". If you sell it, don't expect the new owners to be so lienent with them.
I think you need a taxman/woman also. If you're paying property taxes and utilities not to mention insurance, you should be benifiting more from your units.
i know another chick who just copped a 2nd property (other than her own residence) now that the housing market is down,,,
she says that she's not going to rent it to anyone (doesn't want to risk renters fucking it up),,, she basically cashed in her mutual funds, copped the crib, and plans on selling during her retirement age (35 years away)
she says that she will make a lot more money that way, than parking her money in mutual funds for all those years,,,
you thoughts on this strategy?
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A building that sits for 35 years with noone living it will not be worth the dirt it sits on. It will fall apart on its on
Plus Nothing inside will be updated ? ( hum )
So 35 years from now, it will be a great flip house
New Bathrooms , New Kitchen , New Roof etc
she says that she's not going to rent it to anyone (doesn't want to risk renters fucking it up),,, she basically cashed in her mutual funds, copped the crib, and plans on selling during her retirement age (35 years away)
she says that she will make a lot more money that way, than parking her money in mutual funds for all those years,,,
you thoughts on this strategy?
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A building that sits for 35 years with noone living it will not be worth the dirt it sits on. It will fall apart on its on
Plus Nothing inside will be updated ? ( hum )
So 35 years from now, it will be a great flip house
New Bathrooms , New Kitchen , New Roof etc
Only niggas I've seen on Section 8 are hood niggas and they don't care for your property. I'd get rid of either the house/s or the tenants and start anew
Sounds dumb, houses cost money to keep up. Property is only an investment if you are a developer, for everybody else its a liability.
You need to set up some nice tax shelters.
read this and then work out your game plan.
Magic bullets in real estate very practical info.
http://rapidshare.com/files/1237903/...nal-s.pdf.html
read this and then work out your game plan.
Magic bullets in real estate very practical info.
http://rapidshare.com/files/1237903/...nal-s.pdf.html
I own a duplex and I decided to make it Section 8. My renter I personally know, so my problem is not so much with her, but with the Section 8 system. I did my taxes, (my husband and I file married separately) and getting a measly 6,000 a year from Section 8 for that property caused me to lose my unearned income tax relief. Not to mention that I pay the gas and water for the house, because the renter can't afford to pay the gas--she's a 60 year old widowed lady who is unemployed right now, so really I don't benefit at all from this house.
My other unit is rented by my cousin who has a new baby and makes about 9.00 an hour, so I only charge her 375.00/month, which the fucking IRS will not know about. I'm sure they would try to tax my ass on that too.
Anyhow, any thoughts on being a Section 8 landlord? Do you think it's worth it? I might try to find investors to buy the property if I can. I'm sick of the hassle.
I understand that you want to help family and people out but .... you need to understand that this is a business. No matter what business you get into you need to realize if you keep wanting to "Help a brotha out" at the expense of yourself or your business .... you business will suffer or at the very least struggle.
The second thing you mention is getting a large refund at the end of the year. You do realize that by getting a large refund you gave the gov't an interest free loan all year. They got to hold your money all year and they are not compensating you for it. I aim for a couple hundred dollars back or owing each year. I'd rather owe cause that means that I got an interest free loan from the govt for 12 months.
The average person has trouble saving money so getting a big refund is what many ppl look forward to.By filing separately you miss out on many tax credits. I'm not sure what your situation is but if you go to H & R block ... you can have them put in all your information and they will calculate it both ways. Married filing jointly as well as married filing separately.
See my response above lola.
Not a good strategy. If you buy a new car and let it sit for acouple [years before you use it you will have madd problems. You need to start it once in a while and drive it once in a while to keep it in shape.
The exterior of the property will suffer just as much damage empty as it will full due to the weather. New roof every 20 years, new exterior paint every 5 - 10 years, gutters cleaned every year or 2, etc. She'll also have to get a gardener to keep it landscaped to prevent vandals. Once people know that shit is empty they will gut your house for the copper in the pipes!!!!!!!!!:
The interior of the property will have to be maintained regardless. Winterized in the winter to prevent the pipes from freezing, cleaned up in the spring and checked for leaks, mold etc. You have to have the placed aired out (doors and windows open) on a regular to prevent moisture buildup and mold. Your systems will also have to be checked and maintained annually. If they go bad from lack of use, you are screwed.
Word. That must bring in a lot of work. I always wondered how much it pays to represent the PHA. I have represented tenants against the PHA's here in Minnesota all the time and the PHA attorneys usually suck. I dont know where you practice but its always cool when the counsel for the PHA knows what they are doing.
How involved are you in crafting their Administrative Plans and the internal rules? Do they ask your opinion before evicting tenants from public housing or terminating a voucher? Are you ever present for those informal hearings for Section 8 terminations?
excellent my points exactly.
those speaking on section 8 being ghetto that is not always true.
you got to screen these people well.
there are ghetto people who make alot of money too.
i would not wanna be living next to a rapper...
those speaking on section 8 being ghetto that is not always true.
you got to screen these people well.
there are ghetto people who make alot of money too.
i would not wanna be living next to a rapper...
CONFUSED WHY ARE YOU NOT CHARGING THE OLD LADY THE MAX SHE AINT PAYING FOR IT.
Seek competent tax counsel. If you are going to be a landlord you need to create a seperate entity to hold your properties wheter it is one or one-hundred. In a smaller unit like that your depreciation alone should keep you in the black for several years.
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.
i couldn't read all that,,but it sounds like to me you can solve your problem with your taxes by having more deductions,,,after all you are running a business and have expenses,,co sign on the management co.
i would suggest that if you can do it buy more property and rent out section 8 to older people,,they are less destructive to the propery,,,the housing market should be ripe for a raping soon due to all the foreclosures,,get more informed about your tax right offs,,,you sound like you are in a good positon to expand to me,,,two stable renters,,,guaranteed income,,low maintenace,,,be more creative with your taxes that's what the enemy does,,max out your deductions that are business expenses
i would suggest that if you can do it buy more property and rent out section 8 to older people,,they are less destructive to the propery,,,the housing market should be ripe for a raping soon due to all the foreclosures,,get more informed about your tax right offs,,,you sound like you are in a good positon to expand to me,,,two stable renters,,,guaranteed income,,low maintenace,,,be more creative with your taxes that's what the enemy does,,max out your deductions that are business expenses
Didn't you have a lot of expense to claim against it to reduce the taxable income. Shit you should have all kinds of operating income that you could use against it.
I own a duplex and I decided to make it Section 8. My renter I personally know, so my problem is not so much with her, but with the Section 8 system. I did my taxes, (my husband and I file married separately) and getting a measly 6,000 a year from Section 8 for that property caused me to lose my unearned income tax relief. Not to mention that I pay the gas and water for the house, because the renter can't afford to pay the gas--she's a 60 year old widowed lady who is unemployed right now, so really I don't benefit at all from this house.
My other unit is rented by my cousin who has a new baby and makes about 9.00 an hour, so I only charge her 375.00/month, which the fucking IRS will not know about. I'm sure they would try to tax my ass on that too.
Anyhow, any thoughts on being a Section 8 landlord? Do you think it's worth it? I might try to find investors to buy the property if I can. I'm sick of the hassle.
Something doesn't sound right. When a property has been qualified as Section 8 the goverment will pay you the rent. Second did the cousin and old lady have section 8 vouchers? If they did you are getting screwed. For example, you cousin coudl have been qualified for say $800.00 per month for rent. She then must go out and find a section 8 property where the rent is $800.00 or less. If you are in ATLANTA, then a duplex usually rents for about 500-700 per month each side if not less. If it cost you 600 per month for the entire property...Section 8 may pay you 800 per side...so you shouldn't be losing anything and you are making enough from 8 that you can cover the other utilities. If your tenants don't have a section 8 voucher then show them how to get one...and as far as the old lady..its all kinds of shit out there for her to get money...
The thing that will help your taxes is if you're losing money on your place. Claim the gas bill, water bill , yard work, any repairs, painting,you just have to make the numbers work for you.
Smart strategy.
No having kids "keeps the poor, poor" ...get it right.