Section 8 For A 4 Plex....
I am just in the process of purchasing my first income property. Its a 4 plex (2 bed, 1 bath) .. Numbers look good for the rent that is being charged currently and with me going in owner occupied, (thats so i can get the loan 97% LTV.. only be there for a couple months and than move on) FHA 3% down, seller covering closing costs... Now I havent read much about section 8. Can someone help me with that. Can I make them section 8 and get the gov. to help with payments. What are the requirments?? Its close to a University so I am also thinking of 4 students in each... That would really get some good cash flow flowin.. But I am trying to find the best scenerio... Your comments are welcomed here.. Thanks so much.. 
Here ya go:
http://www.affordablehousingonline.com/housingauthority.asp?State=UT
It works like this:
A tenant decides they want to rent your place. They ask if you accept sec. 8, you say yes.
They complete an application and contact an inspector. He comes and takes a look at your place and either approves it or tells you what you need to do that that he will approve it.
Once it's approved, you sign a lease agreement with them, and they move in.
The checks come from the government on time every month.
A family may qualify for a 2 bedroom apartment. They can choose any 2 bedroom apt that they want that falls within what the program will pay. Generally they're qualified for MUCH more rent than the fair market rents. You can find that info online...don't remember where I saw it though. Call your local housing authority and they'll be able to tell you the maximum rent that you can get for a 2 bed in your area, for example.
You can also post fliers in their offices when you have apartments available.
They ask that you charge them rents that are comperable with the other rents in the complex.
Hey Hibby
Do you know by how much you raise up the rent each year? Please need your help thakns.
HIBBY.... Thanks a ton... I called them and, wait.... Let me back up, currently managment is charging 480 with W/D there... I drove around and called on the other rents and they where around 425 and 450.. I was kinda bummed, cause it was low to me... So I was thinkin that I could get 4 girls in to one, so i would have 16 girls (boys) in the fourplex. Charging 150 a month each and be gettin 600 a unit a month.. I liked that idea but hated at the same time... College Kids... No summer, short leases... all that stuff... So I talked to the Housing Authorities and they said there is a Huge Waiting list and arent taking anymore applications (for tenants).. Meaning they need more Section 8 Housing... The Fair Market Rent for a 2 Bed 1 Bath is 725 including utilites..... WOW... How easy is that... Now the apartments get an inspection once a year.. Not worried about that, cause i still have to have FHA inspect it, if that is good than I am home free... As you can tell, I am really excited... I never considered a cash flow like that. Now I am still considering the risk, I know that the tenant can still NOT pay there portion of the rent, but thats a risk we take with anybody, RIGHT.. Also the lady with housing authority said they inspect when the tenant checks in and checks out... Like a check list and it has to be just as good or better... Or they cant recieve benifits anymore.. Or something like that... Thanks again Hibby.. IM me, wanted to ask you a little more about your deal with your units in SLC... cya ~ skaughtiee
You don't have to pay the utilities. When you pay the utilities tenants end up heating their apartment with their oven, turning the heat up all the way, and opening the windows, etc. Have the tenants pay gas and electricity (average bill is $80 or so a month) and drop the rents by $80-$100 per month. This will keep your income up and expenses down.
If the tenants don't pay their portion, you can report them and they are kicked off of housing. As you said, there is a waiting list. Once they're kicked off, it's almost impossible to get back on, and they absolutly know this. Feel free to hang it over their head.
Additionally, the housing authority will have yearly inspections. If they've lived there a year and the units don't pass inspection (because they've damaged it) the tenant is responsible to fix it back to the original condition. Those are a good thing.
Perhaps I'll come invest in your neck of the woods
Sounds like things are going well. Good job.
Does anybody here have experience renovating Section 8 properties? I have heard about investors that buy multi-family properties and essentially reconfigure them based on section 8 specifications to increase the rental income potential before flipping them. Basically doing things like converting two large bedrooms into 3 smaller bedrooms, adding a bathroom, etc. Can anyone point me to a good discussion or article on this. Thanks.
I've been on TCI for a little bit now, but dont post to much. Its because i do searches from the articles and the forums. I just read mainly. Get a couple questions answered, but mainly read, read, read...
Thats whats great about this site, a lot of history. You can guarntee that most if not all of the subjects have been covered. Good Luck...