Section 8 - What's the catch? (Out-of-State Investing)

[Adam Eckhoff]

Hello Everyone,

Hypothetically speaking, let's say you accrued an amount of $100,000 and you have the goal to invest in real estate. That being said, is it as easy as buying 5 to 10 $50k to $100k properties in Central USA, and securing a section 8 tenant? Assuming you get a management company to look after the properties (since i would be out-of-state investing). Or am I missing something here? 

I've looked into buy and holds, short-terms, long-terms, BRRRR's, and section 8's.

Thoughts on Long-Distance Section 8?

Thanks,

Adam.

[Jonathan Greene]

Whatever you are thinking, stop thinking it. Even the notion that owning 5 to 10 $100k properties would be easy is absolute insanity. The properties that you are talking about owning and the tenancies are the hardest in the business, in general. $50 to $100k properties need maintenance and hide other issues. Tenancies are all over the map. Section 8 can be great because the tenant is only paying a portion of the rent, but managing the tenancies is not easy, especially a hard no from out-of-state. Your property management payments will be higher for C to D areas at those price points.