New investor looking for Section 8 advice

[Brandon Dubisky]

Looking at making my first purchase. My long term goal is an extensive rental portfolio. I am targeting cheap section 8 just to get multiple units quickly BRRRR them and get cash flow coming in. Thoughts? Opinions? Suggestions? Thanks!

[Melissa Kirchhoff]

@Brandon Dubisky - I don't disagree at all. I know a lot of people don't like Section 8 but I've heard great things from people I know who offer it. They say the tenants are amazing because they don't want to lose the privilege and if you have a problem, you can just talk to their officer (I don't think that's the right word but can't think of it right now) or threaten to and they snap back in line. Also, I've heard there's lots of advantages to having the remaining rent come from the government (not late, no issues, etc) and that typically, they are higher than average because of that. However, I do know there's codes and rules for the units to "pass" to be section 8, so I would look into those before the purchase (see if and how much you might need to put in) and know some basic things like that if you don't already. I would talk to the housing in your area and see if you can get someone to give you information before closing on something. I think it's a good idea and worst case, have an exit strategy in place in case it's not your thing (or a property manager!) but otherwise, if the numbers work, I'd say go for it!