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Posted by Laurie Meade on April 10, 2003 at 01:57:38:

Hi,

I have an idea. A little background. I am a single mom, not very good credit, learning how to market online and work myself off disability. I read Robert Allen's latest book, which got me thinking about real estate.

Here is the situation. I currently live in an apartment. I get section 8 but I have to move by summer because my landlord is phasing out all section 8 tenants. I am one of the last. I have been here for seven years.

The other day I looked at a house that is for sale. It is one block from my kids school. It is an older house, built in the early 1900's. It needs work. The agent said, the owners are investment owners and want to get out of it. They have it set up with 1500 added to the price for closing plus fees to make up for downpayment, so that someone can finance with no money down.

Now here is the clincher. There is a small one bedroom house on the back of the lot. She said that house has rented for 450 dollars. I don't see how it is in need of work.

What I want to do is find an investor that would buy the house and rent it to me through section 8 for a year or so with a lease option to buy. They could get more than enough for the house payment, from my rent alone and rent the second house for even additional income.

How do I go about finding a lender who might consider this.

I have until about July to move, but it takes about 6-8 weeks to get appointments and moving paper stuff done through section 8.


I am going to teach myself this stuff, but I also run a website and have kids, so it isn't like I can learn it all really quick. I figure in a year's time I should be able to have learned enough to have worked myself off of Section 8.

Also, they have classes you can take to learn how to use there program to buy your own house. I need to look into that as well.

Thanks in advance for any advice anyone can give me on this matter. I am so glad I found this site.

Sincerely

Laurie Meade
a single mom with a lot of desire, determination and dreams to succeed, but not a lot of capitol.

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Posted by garth on April 11, 2003 at 09:28:21:

Laurie,

HUD has housing choice vouchers which help those using Section 8 to purchase property they are going to live in.

Also maybe you have a relative that can help co-sign with you.

Talk to a broker you may qualify for programs and grants that you don't know about.

I hope this helps.

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Posted by Nate(DC) on April 11, 2003 at 15:05:23:

Laurie,

The only difficulty I see with this plan is that if the main house needs work it will not pass the Section 8 inspection, so you'd have to allow enough time for it to be bought - and renovated - and passed inspection - and THEN do all the paperwork and be out by July. While that could work, it could also be cutting it a bit close depending on how fast you find the investor, how fast the work gets done (I don't even know the scope of work needed), and how fast your housing authority processes paperwork.

Just out of curiosity, where are you located? As Garth mentioned, some Housing Authorities are now doing a purchase program through Section 8. If yours is, you could look into that as well, though they probably would not allow you to purchase THIS house if it is in need of significant repair.

Good luck,
NT