Just who is buying foreclosures….

[Ricechex]

Recently, my GF told me her BF bought a foreclosure in Otay Ranch for $400K. He is renting it out with Section 8 to a large family. My experience has been that Section 8 tenants aren’t always straightforward with who is on the lease, and oftentimes have several family members living with them that are not permitted. Sometimes these family members have additional problems such as drugs and criminal histories. Overall, a neighborhood filled with Section 8 tenants does not seem to be a good thing. Having lived in North Park on various streets throughout the years, I can tell you I prefer Homeowners as neighbors rather than Section 8 tenants, or any others utilizing government entitlements. If anyone on these boards is Section 8, I apologize, I realize not ALL people behave the same, it has only been my experience.

Though I have no interest in moving to Otay Ranch, it makes me wonder what is going to happen to the suburban neighborhoods with many foreclosures. It seems like they may be on their way to ghettofication.

Now, this is only the first person that has bought a foreclosure that I personally know of, but I wonder how many others are doing the same thing.

[temeculaguy]

Who cares about who is paying the rent, why did he buy a place for 400k and go section 8? Section 8 has eligibility rules, tenants must make half the median income and the rent has to be between 30% and 40% of their income. At best he is getting 2k a month, likely it is less. 300k is the most anyone should pay for a 2k rental using the 150x multiplier as the utmost ceiling. In a year it wont be section 8, it will be a re-repo. Curently the maximum income for a family of 8 is 52k.

http://www.co.san-diego.ca.us/sdhcd/docs/income_limits.pdf

40% of that is 20k a year, 1800 a month being the ceiling for a family of 8 and that is pushing the envelope. Section 8 is not designed for nice houses or high rent most section 8 rentals are at the bottom tier of the housing stock. Now group homes is an entirely different scenario, that is a legitimate worry but there is a finite amount, so it’s not like 10k group homes will come in. It is possible that someone has decent income but has a disabled family member and thus receives some form of benefit but that is not the norm for section 8 and nothing you need to worry about. If he isn’t getting upwards of 3k in rent, he’s an idiot.

Don’t worry about trends like this, only a few fools are left to be separated from their money, there isn’t going to be line forming behind this guy, the line is very short to be 50% cash negative on a rental.

[temeculaguy]

Who cares about who is paying the rent, why did he buy a place for 400k and go section 8? Section 8 has eligibility rules, tenants must make half the median income and the rent has to be between 30% and 40% of their income. At best he is getting 2k a month, likely it is less. 300k is the most anyone should pay for a 2k rental using the 150x multiplier as the utmost ceiling. In a year it wont be section 8, it will be a re-repo. Curently the maximum income for a family of 8 is 52k.

http://www.co.san-diego.ca.us/sdhcd/docs/income_limits.pdf

40% of that is 20k a year, 1800 a month being the ceiling for a family of 8 and that is pushing the envelope. Section 8 is not designed for nice houses or high rent most section 8 rentals are at the bottom tier of the housing stock. Now group homes is an entirely different scenario, that is a legitimate worry but there is a finite amount, so it’s not like 10k group homes will come in. It is possible that someone has decent income but has a disabled family member and thus receives some form of benefit but that is not the norm for section 8 and nothing you need to worry about. If he isn’t getting upwards of 3k in rent, he’s an idiot.

Don’t worry about trends like this, only a few fools are left to be separated from their money, there isn’t going to be line forming behind this guy, the line is very short to be 50% cash negative on a rental.

[temeculaguy]

Who cares about who is paying the rent, why did he buy a place for 400k and go section 8? Section 8 has eligibility rules, tenants must make half the median income and the rent has to be between 30% and 40% of their income. At best he is getting 2k a month, likely it is less. 300k is the most anyone should pay for a 2k rental using the 150x multiplier as the utmost ceiling. In a year it wont be section 8, it will be a re-repo. Curently the maximum income for a family of 8 is 52k.

http://www.co.san-diego.ca.us/sdhcd/docs/income_limits.pdf

40% of that is 20k a year, 1800 a month being the ceiling for a family of 8 and that is pushing the envelope. Section 8 is not designed for nice houses or high rent most section 8 rentals are at the bottom tier of the housing stock. Now group homes is an entirely different scenario, that is a legitimate worry but there is a finite amount, so it’s not like 10k group homes will come in. It is possible that someone has decent income but has a disabled family member and thus receives some form of benefit but that is not the norm for section 8 and nothing you need to worry about. If he isn’t getting upwards of 3k in rent, he’s an idiot.

Don’t worry about trends like this, only a few fools are left to be separated from their money, there isn’t going to be line forming behind this guy, the line is very short to be 50% cash negative on a rental.

[temeculaguy]

Who cares about who is paying the rent, why did he buy a place for 400k and go section 8? Section 8 has eligibility rules, tenants must make half the median income and the rent has to be between 30% and 40% of their income. At best he is getting 2k a month, likely it is less. 300k is the most anyone should pay for a 2k rental using the 150x multiplier as the utmost ceiling. In a year it wont be section 8, it will be a re-repo. Curently the maximum income for a family of 8 is 52k.

http://www.co.san-diego.ca.us/sdhcd/docs/income_limits.pdf

40% of that is 20k a year, 1800 a month being the ceiling for a family of 8 and that is pushing the envelope. Section 8 is not designed for nice houses or high rent most section 8 rentals are at the bottom tier of the housing stock. Now group homes is an entirely different scenario, that is a legitimate worry but there is a finite amount, so it’s not like 10k group homes will come in. It is possible that someone has decent income but has a disabled family member and thus receives some form of benefit but that is not the norm for section 8 and nothing you need to worry about. If he isn’t getting upwards of 3k in rent, he’s an idiot.

Don’t worry about trends like this, only a few fools are left to be separated from their money, there isn’t going to be line forming behind this guy, the line is very short to be 50% cash negative on a rental.

[temeculaguy]

Who cares about who is paying the rent, why did he buy a place for 400k and go section 8? Section 8 has eligibility rules, tenants must make half the median income and the rent has to be between 30% and 40% of their income. At best he is getting 2k a month, likely it is less. 300k is the most anyone should pay for a 2k rental using the 150x multiplier as the utmost ceiling. In a year it wont be section 8, it will be a re-repo. Curently the maximum income for a family of 8 is 52k.

http://www.co.san-diego.ca.us/sdhcd/docs/income_limits.pdf

40% of that is 20k a year, 1800 a month being the ceiling for a family of 8 and that is pushing the envelope. Section 8 is not designed for nice houses or high rent most section 8 rentals are at the bottom tier of the housing stock. Now group homes is an entirely different scenario, that is a legitimate worry but there is a finite amount, so it’s not like 10k group homes will come in. It is possible that someone has decent income but has a disabled family member and thus receives some form of benefit but that is not the norm for section 8 and nothing you need to worry about. If he isn’t getting upwards of 3k in rent, he’s an idiot.

Don’t worry about trends like this, only a few fools are left to be separated from their money, there isn’t going to be line forming behind this guy, the line is very short to be 50% cash negative on a rental.

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