Subsidized Housing Potential

[Bernie Huckestein]

Came across a potential opportunity that has Gov subsidized housing.  I've not previously considered section 8 type housing and am trying to determine my willingness to do so.  I'd welcome input and / or a partnership opportunity with someone experienced with this.

In general:

Nice property with individual town home type units (10) and a mix from 1 to 4 br...not counting the low-income requirement could be very nice if there is an opportunity to convert normal occupancy --  building and layout is attractive -- about 50% of the tenants are living like slobs and not who I would want to have.  I am told the current management / lack of management does not really pay attention.

While I don't think you can force people to pick up after themselves (in the apartment) I do understand with the state program, the landlord does have the opportunity to enforce the lease rules (community upkeep, noise, external trash, etc) or the tenant could lose the sweetheart deal they have for housing.  Current landlord just does not do it.

I will share the numbers with those interested via PM; however,

Initial numbers provided:

$125k gross rent  --  about a 1.8% ratio

$57k annual expenses they do not factor vacancy 

Also, seems to be an assumable loan for part of the sales amount (but this is what locks it into the state program)

- some things are missing here but also some items seem very high and potentially not managed $20k Maint (16%) --  not including grounds, plowing etc....near $6,500 water/sewer, and nearly $10k in heating (each unit stands on its own and has there own heat but the state program I believe is to include heat).

Long way to go to determine how doable this potential deal is but before I spend a lot of time wanted to first get a comfort zone or partner idea with subsidized housing.

Appreciate your comments and I expect some will be "don't walk, run", others may have ideas on how to make this a success --  bernie