First Property - Section 8?

[Shea Spinelli]

My wife and I are ready to purchase our first multi-family, first investment property. I was driving by a triplex in a low income neighborhood for 95k and grosses $1400/month. After I scoped out the property, I came across a duplex across the street from an elementary school. I called the realtor, turns out it hasn't been listed yet on the MLS. They want 205k, it's leased on both sides grossing $2150/month. In researching the property after driving for dollars, I found out it is Section 8 housing. I have read several differing opinions on Section 8. Does anyone have an experience with Section 8 housing for their first property? Do you recommend this path or should we continue looking? Since the property is only a year old, fully leased, once it hits the MLS I believe it will go fast. The analysis tool on BP for rental property shows it to cash flow at $327/month after high estimations in expenses since I don't have hard numbers yet.

[Patti Robertson]

I have lots of SEC 8 rentals @Shea Spinelli.  I think it would be a great way for you to ease into landlording because you can start with stable cashflow. There will be a slight delay in your first payment while you process the paperwork to become the payee, but SEC 8 will catch up on what they owe you as soon as the paperwork is done.  Check to see if your housing office has an intro class for new landlord's.  It will make you comfortable with the expectations.