Section 8 In Georgia
I am a newbie and I have found my first potential property. The owner is willing to lease-purchase it to me for 150K with 3% down and 925 per month. Section 8 will pay up to $1500. per month on a 4/2 in good condition. (The property under rehab right now). Can I put a property on section 8 that I am lease purchasing?
If it's not in your contract with who you're buying it from, then the Housing Authority people don't care. However... Caveat to that, good luck getting that much from Section 8. I've got a 5/2 in good condition, granted in not the best of neighborhoods, but not bad, and only get $1,100.00 for someone with a 4 bdrm voucher.
You will have to be the owner of the subject property or the owner assigns responsibility to a property management company.
Some areas allow the recording of the lease op agreement and may qualify you as part owner.
I would suggest contacting your local section 8 office or go to http://www.affordablehousingonline.com/housingauthority.asp?State=GA&offset=20
Jam,
How did you come the amount of 1,100? Is that all the market would bear? Or, was that a "max" that a voucher would feasibly allow to be paid?
(This is the one problem that I am having...knowing how much rent to post on each property, because the FMV amount seems to be more than you can actually get from posting my properties on the local Sect 8 boards)
Quote:
On 2004-09-03 18:14, AllanShay wrote:
I am a newbie and I have found my first potential property. The owner is willing to lease-purchase it to me for 150K with 3% down and 925 per month. Section 8 will pay up to $1500. per month on a 4/2 in good condition. (The property under rehab right now). Can I put a property on section 8 that I am lease purchasing?
Depends on which Section 8 you use. Marietta Housing Authority (MHA) Sec 8 just passed a new rule requiring a warrenty deed for the property in which case I believe you are no go (actually the rule was created because of a fubar concerning one of my tenants, but that's a different story). City of Marietta doesn't have that rule yet so you should focus there. The rent from City of Marietta is $1350 to $1500 depending on the property, but it is certainly not $1100, I get that from section 8 for my 3/2.
[addsig]
Well, see, the Atlanta Housing Authority has a chart that grades the house, and neighborhood, with neighborhood on the side, house grade across the top, you follow down, and where the two cross, that's the amount you get. And, it's ALL subjective, just whatever the inspector just HAPPENS to think about it... The house I mentioned above, the yearly inspection just happened, and for SOME reason, they decided to up my rent to like $1,530.00. I haven't gotten a new lease signed yet, 'cause it's not due till November, they just decided, in their infinite wisdom, that that was what they were going to pay.
It REALLY doesn't matter how much rent you put on your lease, as they're going to pay what they're going to pay, and if that's not enough, then don't accept, and find a different renter. Put the amount on the lease up higher than you know they'll pay, and know how far down you'll negotiate, and stop there. Just a good rule o'thumb there...
I don't know anything about Marietta. With all the silly crap I keep hearing coming outta there, I'm going to avoid the place, as there's tons of other deals elsewhere. Plus, well, it's quite a hike over to it for me, so it'd be a pain to take care of a rental there.