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Updated over 7 years ago on . Most recent reply
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- Investor
- Youngstown, OH
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Section 8 and mitigating repair costs
I'm doing some research and learning about my options for my first true investment property (I currently rent the spare bedrooms out of my primary residence, but I do not have a separate investment property yet).
A good friend who is an experience RE agent has a client doing very well with Section 8, and he has encouraged me to consider it.
I've done some research in the forums here on BP, and one common complaint I've heard is that repair costs tend to be higher for Section 8 tenants due to a combination of annual inspection requirements and lack of tenant responsibility. Just curious to know if anyone has found ways to mitigate these repairs/expenses. One suggestion I've seen is to aim for families in which at least 1 person is employed. Are there other strategies out there for screening tenants or qualities to seek out in Section 8 tenants?
TIA!
Most Popular Reply
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- Property Manager
- Virginia Beach, VA
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@Nicole Heasley Beitenman - It's not SEC 8 that results in higher repair costs, it's buying in low income neighborhoods. Whether the tenant is SEC 8 or not, you will have the same experience. You are going to pay a lower price in these neighborhoods, but you will pay more on on-going repairs. You can, however, hold a SEC 8, or any other tenant, liable for repairs they cause. Some areas have more charities to assist than others. In one of my cities we can almost always get a delinquent tenant current with charity help, but not in all cities.
Here's a blog I wrote about SEC 8 that may assist your decision. https://www.biggerpockets.com/blogs/9232/55313-intro-to-section-8---your-perceptions-vs-my-realities
- Patti Robertson
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