Trying to figure out what I should do, Any thoughts?

[chandabb]

OK, I have been trying to get my ducks in a row over the past months.  I have my accountant ready to go, I set up my LLC, and an attorney when needed.  Now I just have to find the property.  I need to buy a home for my mom (retired with hardly any income) because the house she's currently in is not health friendly.  She can only afford so much, so I'll have to pick up what I can on the portion she can't pay for the mortgage.  I only have about 6,000 saved at this point which isn't going to get me very far.  The more I think about it, the more I think I need to buy a property to flip and a rental with extra income in order to get a little cash that will help me with a down payment and the shortage of the monthly payments for the house I get for mom.  Although not sure if this can even happen if I don't have lots-o-money to put down.  I know you should never mix business with family or personal things, but a house for mom would be helping her health and my portfolio.  Does this strategy make sense or am I going about it wrong?  Just wondering what everyone's thoughts are.

 

[Dave T]

Buy the rental and put Mom in as your tenant.  Get Mom on the Section 8 program and you won't have any "shortfall".

[chandabb]

Buy the rental and put Mom in as your tenant.  Get Mom on the Section 8 program and you won't have any "shortfall".

I thought about doing that in the past, but from what I understand people have to go on a waiting list that could take years before they can even get section 8 assistance and based on the info on the website, it also sounded like people that get section 8 assistance have to live in specific locations that are section 8 of which I definitely wouldn't want my mom living in.

[Dave T]

I think you are confusing Section 8 housing assistance with low-income housing projects.   Section 8 assistance is designed for the low-income renter that wants to live in mainstream housing -- the same housing that you would rent for yourself could also be rented by a Section 8 tenant.

Section 8 tenants find the place they want to rent then use their housing assistance to subsidize a portion of the rent.  Landords who accept Section 8 tenants have to enroll their property in the Section 8 program and their property has to pass a health and safety inspection. 

There may be a waiting list for Section 8.  Nothing says your Mother couldn't rent from you until she became eligible for housing assistance. 

[buffinvestor]

In some cities, you have to state whether or not the Section 8 tenant is a relative...I don't know what they do in that case but you should find out what limitations you'd have with that...

[chandabb]

Thanks to everyone for the info.  I found a different site than the one I originally looked at.  There must be a difference because the site I found over the weekend did state that an individual just had to find a property they'd like to rent and then the process one has to go through to get approved in addition to the process for the owner of the property.