is anyone familiar with section 8 tenants. what is the legal effect of purchasing multidwellings with section 8 tenants occupyingthe residence ?
Howdy Raidermarc:
Not sure what you mean by legal effect. One thing that comes to mind is the the lease stays with the property whether sec 8 or other. You have to honor the lease and assume the responsibilities for the lease and deposit. You also get the benefits of the rent payments from Uncle Sam. A lot of red tape but once you learn the system Sec 8 can be greeeeeeat.
I hope this was what you were looking for?
I haven’t bought multi-family with Section 8, but have bought single family homes with Sec 8 tenants. Tedjr is correct about the lease coming with the tenant. Contact the case worker(s) for appropriate paperwork to transfer after you have a signed contract. You’ll also want to know about the previous inspection and when the next one will take place. The case worker probably won’t tell you this as you are not yet the owner, so make your offer contingent on receiving copies of the lease and inspection reports. You can then call to verify info with the case worker. It may take a few weeks to transfer after the closing, so try to time the closing accordingly, or arrange for 1-2 month’s rent to be held in escrow. Otherwise the check will go to the previous landlord, and you have no recourse to get paid.
Howdy Kimdrake:
Great points there. Sec 8 case workers and the whole system is really slow at least the ones I have dealt with. They do have a large work load and this is to be understood. A lot of paperwork to do to change anything. I used to get one check per month for about 10 tenants and if they screwed up that check it would take another month to get a new check.
LOL
another thing to keep in mind with sec.8 is that the rents can fluctuate, one duplex we got into we based ours numbers off of the current sec.8 rents, but did not realize that they moved up and down, and we ended up getting a duplex and the rents dropping in the fall,with $100 less cash flow each month. Live and learn this is what REI is all about.