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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Anyone here ever think about or have already purchased a second (investment) home ???
I have been tossing around the idea of buying a second home as an investment, strictly to rent out. Not looking for a vacation/summer home, want to get something strictly to rent out.
Probably will look in Suffolk, but I may consider Nassau if I can get a great deal.
Has anyone done this and can offer some feedback? I guess my main question is how easy was it to find tenants? I always thought the rental market was really strong thanks to more people not being able to afford a mortgage thanks to this slow economy (people need to live somewhere). But a good friend of mine is having a real hard time renting out his legal upstairs apartment in his house.
I think it's a great time to buy with prices down and interest rates looking good.
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Posted 2/2/09 9:40 AM  |
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nov04libride
big brother <3
Member since 5/05 14672 total posts
Name:
Me
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Re: Anyone here ever think about or have already purchased a second (investment) home ???
Several people in my office own homes that they rent out to Section 8. Apparently this is easier because the rent is paid directly from the state (or county?).
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| Posted 2/2/09 9:49 AM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Anyone here ever think about or have already purchased a second (investment) home ???
Posted by nov04libride
Several people in my office own homes that they rent out to Section 8. Apparently this is easier because the rent is paid directly from the state (or county?).
Thats interesting because my friend had tons of section 8 looking at his place . But he is very nervous renting out to section 8. Thinking he is going to have his house ruined?
He is living in the house, but I would be living off-site. Not sure if that makes a difference.
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| Posted 2/2/09 10:13 AM |
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nov04libride
big brother <3
Member since 5/05 14672 total posts
Name:
Me
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Re: Anyone here ever think about or have already purchased a second (investment) home ???
Posted by ave1024
Posted by nov04libride
Several people in my office own homes that they rent out to Section 8. Apparently this is easier because the rent is paid directly from the state (or county?).
Thats interesting because my friend had tons of section 8 looking at his place . But he is very nervous renting out to section 8. Thinking he is going to have his house ruined?
He is living in the house, but I would be living off-site. Not sure if that makes a difference.
Yeah, I would be more comfortable renting out a home I am not living in. Apparently they said it is much harder to get burned with rent/people moving out without paying, etc., since the money doesn't come from the renter. No problems with ruining the home, though I am sure it probably does happen. Maybe the renters have their section 8 revoked if they ruin the home?
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| Posted 2/2/09 10:21 AM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Anyone here ever think about or have already purchased a second (investment) home ???
I have one in AZ. The market is very different and I don't make my mortgage.
I intended the condo to be a place for my parents but that didn't happen.
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| Posted 2/2/09 10:31 AM |
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LBBCHGRL
LIF Infant
Member since 1/08 199 total posts
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Re: Anyone here ever think about or have already purchased a second (investment) home ???
I have a condo in NC that I rent out. We have gone a few months without tenants but nothing too long. We are in a college town so there is always someone looking for a place to live. As for the costs we cover the mortgage but not much more. We have a property manager who looks after it and they do a okay job but all in all we are happy with it.
We also have a 2 family house in Nassau that we live in and rent the other apt. I can't say too much on that because since we have had it we have been lucky and had friends rent from us with no problems.
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| Posted 2/2/09 11:38 AM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Anyone here ever think about or have already purchased a second (investment) home ???
Posted by nov04libride
Yeah, I would be more comfortable renting out a home I am not living in. Apparently they said it is much harder to get burned with rent/people moving out without paying, etc., since the money doesn't come from the renter. No problems with ruining the home, though I am sure it probably does happen. Maybe the renters have their section 8 revoked if they ruin the home?
Yeah... I would think as long as the money comes in on time who cares? 
He is a new homeowner so he is a little paranoid I guess. He thinks getting a Secion 8 will mean he will have 10 people living in his apartment. He also thinks his neighbors will hate him for renting out a Section 8. Who knows.
Me personally I would be a little nervous, but knowing I am getting the money every month would mean quite a bit. 
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| Posted 2/2/09 12:12 PM |
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vegalady
Love my family
Member since 6/06 4546 total posts
Name:
SNV
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Re: Anyone here ever think about or have already purchased a second (investment) home ???
DH and I have 3 other homes that are our investment homes.
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| Posted 2/2/09 3:43 PM |
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sunnyplus3
:)
Member since 11/05 8749 total posts
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Re: Anyone here ever think about or have already purchased a second (investment) home ???
yes, we do. we have a few properties that are section 8 rentals. the market value for section 8 rent is much lower than what you might expect so often the tentants pay a portion of the rent.
Sometimes the rent doesn't cover the nut.
Each township has different guidelines for becoming a landlord through section 8 & contact people for getting started.
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| Posted 2/3/09 6:46 AM |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14007 total posts
Name:
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Re: Anyone here ever think about or have already purchased a second (investment) home ???
Posted by ave1024
Posted by nov04libride
Several people in my office own homes that they rent out to Section 8. Apparently this is easier because the rent is paid directly from the state (or county?).
Thats interesting because my friend had tons of section 8 looking at his place . But he is very nervous renting out to section 8. Thinking he is going to have his house ruined?
He is living in the house, but I would be living off-site. Not sure if that makes a difference.
Section 8 doesn't mean bad tenants. Section 8 is a subsidy to people to help them afford a place to live. Typically, you get to interview the tenants and the state (or county) provide "insurance" should damage be done. The downside to Section 8 is that the landlord can be held to some high standards. My SF has Section 8 tenants...he's in CA but he has a professional couple renting a house from him through Section 8 because the rent is so high that even professionals can get help.
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| Posted 2/3/09 8:07 AM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Anyone here ever think about or have already purchased a second (investment) home ???
Posted by shamrock124
Section 8 doesn't mean bad tenants. Section 8 is a subsidy to people to help them afford a place to live. Typically, you get to interview the tenants and the state (or county) provide "insurance" should damage be done. The downside to Section 8 is that the landlord can be held to some high standards. My SF has Section 8 tenants...he's in CA but he has a professional couple renting a house from him through Section 8 because the rent is so high that even professionals can get help.
Yes I am aware of what Section 8 is. You could also just rent to some people that have fallen on hard times.
It sounds like Section8 can be hit or miss. I was looking on MrLandlord.com and a lot of landlords there (experienced landlords) really prefer NOT to rent to Section 8. They say your unit will run a good chance of getting messed up thanks to the tenants that simply don't care.
I have one other question. What is the best way to find out what the going rentals are for a particular area and what kind of market there is for rentals? I could easily look on craigslist to see what other listings look like, but I can't tell on craigslist if there is more supply than demand. Is it possible to talk to a Secion 8 representative before buying to see what info he/she can offer me? I would think they would know what is out there judging by how many people they still have "looking".
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| Posted 2/3/09 8:12 AM |
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