Thoughts on Section 8 housing rentals...

[Paul65K]

I've owned numerous Section 8 housing properties.....All of them ended badly..........you have my number and I'd be happy to discuss it with you Brian.....Gimme a call

[ChumpChange]

At least a portion of the rent will be on time every month.

Sometimes you get a good person but even that diamond in the rough will always revert back to coal at somepoint. Don't do it with a good house.

[gn7]

It is/was a tax haven for the rich. Like you said, you need to incorporated to make it work at all.
Magic Johnson was/is? one of the largest section 8 housing landlords in Los Angeles. You MUST have a property management company handle shit for you, or you will be married to property full time. My sister worked for the property management company that handled Magic's stuff. Section 8 renters know "renter's rights" forwards and backwards and you need someone that knows them just as well on your side or you'll get eatin'

[2manymustangs]

It is/was a tax haven for the rich. Like you said, you need to incorporated to make it work at all.
Magic Johnson was/is? one of the largest section 8 housing landlords in Los Angeles. You MUST have a property management company handle shit for you, or you will be married to property full time. My sister worked for the property management company that handled Magic's stuff. Section 8 renters know "renter's rights" forwards and backwards and you need someone that knows them just as well on your side or you'll get eatin'

I have known a few slum lords while I was practicing R.E. (my broker was one) and now my wife works part time for a property mgmt company that owns/manages many of their own places...

The stories are enuff to make you

[C-2]

Is there any reason he is suggesting a corporation? Can you get financing for a corporation without giving up a PG (personal guarantee)?

[riverrunner1984]

Is there any reason he is suggesting a corporation? Can you get financing for a corporation without giving up a PG (personal guarantee)?

From what I understand it is for taxes. The corp would get the rental income as opposed to me. The corp can depreciate the house and I can take a draw if needed from the corp. this is hear say right now but it's what I was told. I'm going to be looking into it a lot more once my house sells.

Sounds like Paul, Matt or Dennis may know a bit more why a corp is a better option.

[shueman]

Better off to buy a Kings View Condo (or 2) and bank the rental $$ plus use it...

[riverrunner1984]

Better off to buy a Kings View Condo (or 2) and bank the rental $$ plus use it...

Can you elaborate? Kings View Condo??

[riverrunner1984]

I've owned numerous Section 8 housing properties.....All of them ended badly..........you have my number and I'd be happy to discuss it with you Brian.....Gimme a call

Thanks Paul, I will give you a call this weekend.

[riverrunner1984]

To be more specific, this would be a townhome/condo in the North Long Beach/Paramount area. Not the best of areas but def a high demand for rent.

You brought up a very good point about a mgmt company GN7. Since I would only have 1 property I figured I could manage it myself but that is something I am going to look into now. Thanks!