How can you sell to section 8 tenant? - Posted by Tim

Real Estate Investing Section 8
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Posted by David Krulac on May 25, 2008 at 17:44:58:

section 8 rulese prohibit renting to a relative, so if her father bought either:

  1. she would have to get off section 8

  2. she would have to move.

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How can you sell to section 8 tenant? - Posted by Tim

Posted by Tim on May 25, 2008 at 12:35:07:

I have a property that I’d like to sell. It’s currently rented section 8. The tenant probably won’t qualify based on her (lack of) income, but she really wants to keep living in the house.

I was thinking… it would be nice if her father or another relative wanted to buy the property on contract from me. My offer would be to sell the property on contract to one of her relatives, accept higher payments for a year or so (part of the payment getting applied to a down-payment fund), then helping them get financed to buy the property as a rental. They could keep renting to the current tenants, keeping them on section 8.

This would accomplish a few things:

Relieve me of the negative cash flow.
Put the maintenance burden on the buyer.
Put the section 8 / compliance burden on the buyer.
Give me a decent payday (closing) to look forward to.

I believe this scenerio fits into the topic of this forum, so I thought I’d throw this out there and see what kind of response I could get. I’d like to know what kind of complications I am likely to encounter if I managed to put something like this together. Both in general, and specific to this situation considering the fact that the property is section 8.

Any input would be greatly appreciated.

Tim

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May have another problem - Posted by Rich-CA

Posted by Rich-CA on May 26, 2008 at 08:54:07:

unloading it on another investor if you are losing money each month. If you want to unload the property, you may have to terminate the tenant, clean the place up and sell it. The rental and sales market are pretty separate, so you will need to make a choice.

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Re: How can you sell to section 8 tenant? - Posted by James Harris

Posted by James Harris on May 26, 2008 at 08:42:29:

Section 8 has a program where the person on section 8 can purchase the home the rent. Section 8 pays a certain amount for a while, declining. You’ll have to check with the housing authority where you live to check on the availability of the program in your area.