Return to the Buying and Selling Homes Forum | Post a Follow-Up

 o
Fannie Mae First Look:

Posted by bushleague (My Page) on
Sat, Dec 4, 10 at 12:34

I am looking at a single family Cape for investment and it's an REO owned by Fannie Mae on their First Look program, targeted at first time home buyers. I have read that people are setting up single property LLC's and buying the home under the LLC, any credence to this?

The l.p. is $164,900, Zillow at $265,000. This would be a buy and hold (HUD Section 8 pays $1441/mo) as Fannie is trying to eliminate flipping. Thanks!


Follow-Up Postings:

 o
RE: Fannie Mae First Look:

"HUD Section 8 pays $1441/mo"

Nd the section 8 tenants will destroy the place, requiring well above any profit made to repair things between tenants.


 o
RE: Fannie Mae First Look:

Section 8 rules have changed;
tenants who damage their leased homes can be booted out of the program & become ineligible to get back in.


 o
RE: Fannie Mae First Look:

Yes HUD in this particular area pays FMR, which is $1441/mo. Quote I received today was 4.5% on a 20 year, no points bringing PITI to $1080/mo, or a positive cash flow of $361/mo. This will be my fourth Section 8 property. In my experience, Section 8 tenants are a little higher quality since getting a nice house is the biggest thing to come across their plate in a long time. They tend to stay very close to the 'nipple' so to speak, and the houses are immaculate when I show up. Repairs between tenants, I wouldn't know, I have the same tenants year in, year out.


 o
RE: Fannie Mae First Look:

I suspect the section 8 clientele varies a lot by area. I don't think you'd be singing the same song here.


 o
RE: Fannie Mae First Look:

Are you asking whether you could set up a single-property LLC to buy the home through the First Look program? If so, no. Investors can't put in offers on the home until after the First Look period is over. After that, you could put in an offer just as you would on any other property, and set it up as an LLC if you wanted to.


 o
RE: Fannie Mae First Look:

"Section 8 rules have changed;
tenants who damage their leased homes can be booted out of the program & become ineligible to get back in. "

As long as you are not their first landlord before they get booted.


 o Post a Follow-Up

Please Note: Only registered members are able to post messages to this forum.

    If you are a member, please log in.

    If you aren't yet a member, join now!


Return to the Buying and Selling Homes Forum

Information about Posting

  • You must be logged in to post a message. Once you are logged in, a posting window will appear at the bottom of the messages. If you are not a member, please register for an account.
  • Please review our Rules of Play before posting.
  • Posting is a two-step process. Once you have composed your message, you will be taken to the preview page. You will then have a chance to review your post, make changes and upload photos.
  • After posting your message, you may need to refresh the forum page in order to see it.
  • Before posting copyrighted material, please read about Copyright and Fair Use.
  • We have a strict no-advertising policy!
  • If you would like to practice posting or uploading photos, please visit our Test forum.
  • If you need assistance, please Contact Us and we will be happy to help.


Learn more about in-text links on this page here