Me vs. the Wife (Section 8 and squatting)

[Adam Eckhoff]

Good Afternoon BP's,

I'm about to throw a hypothetical scenario at you guys, and please let me know what you think. 

Let's say I come across a property in Atlantic City, NJ with good bones (roof, plumbing, windows, electric, etc..), or even Turnkey! Now, let's say its a three-bedroom SFH which would sell for $150,000 to $200,000. Assuming it's Section 8 approved, why would it not be a good idea to slap a Section 8 tenant in there and collect positive cash flow? Assuming my mortgage payment is around $1,000 to $1,500 per month, and i would receive $2,200 per month from Uncle Sam, why would i not do this?? (ASSUMING, the tenant is screened properly). 

Conversely, my wife is very hesitant to join me on my real estate journey ever since she saw news about squatters. How would i handle her doubts about squatting rights?

Final FY 2024 & Final FY 2023 FMRs By Unit Bedrooms
Year	Efficiency	One-Bedroom	Two-Bedroom	Three-Bedroom	Four-Bedroom
FY 2024 FMR	$1,172	$1,340	$1,670	$2,353	$2,584
FY 2023 FMR	$1,081	$1,257	$1,583	$2,240	$2,445

[Vaughn Smith]

@Adam Eckhoff section 8 always sounds a lot easier than it is. The headaches you get from a bad section 8 tenant can outweigh the benefits by a long shot. AC is very depressed so it has all of the challenges of any depressed area but in really large doses. If you buy a turnkey property you have very little chance to force appreciation  so you have to wait and pray for values to increase (not good).

When you run your numbers in AC remember to leave wiggle room for flood insurance most of AC needs it and increase your turn over budget for when tenants move out. 

I would side with your wife on this one, I typically tell people to stay out of AC, Trenton and Camden or any D area especially if you're new those properties are very labor intensive