Starting out and need some advice

[Stian Jones]

Hello,

My mother, brother and I are looking to start investing in multifamily properties, quadplex to be more specific. I came across a quadplex in my area that looks to be a good deal. I have put it in the calculator and done all the math. I will be doing a VA loan and one of the units I will live in for the 1st year. There is already 3 tenants living there and have been for years. The problem (I think) is 2 of the tenants living there are section 8. Is that a problem and should I go for it? the one non section 8 is paying the least amount in rent. Without reno, increasing the rent or negotiating a lower deal (of course I will go in lower then asking price), for the 1st year its almost a break even after all expenses. The part that I like is after I move out the 4th rent is all profit. Any help or suggestions would be greatly appreciated.

[Brent Kiger]

@Stian Jones So the first duplex I ever bought, I realized one of the tenants was Section 8 after we were under contract, and close to closing. I was upset that it wasn't disclosed, or more like that I didn't figure it out on my own through my own due diligence. The truth is, I had no experience in being a landlord and assumed the worst when it comes to Section 8. I closed on the property and she is with me six years later and is one of my best tenants. Especially with the COVID shutdowns, having some section 8 tenants has been a good hedge against more traditional renters that have stopped paying and/or lost their jobs. I now currently seek out more Section 8 tenants.

So short answer, my opinion is that section 8 is neither good or bad, it just is. Definitely not a reason for me to run from a deal, and frankly quite the opposite. That has been my experience at least.