Advice on a potential deal.

[Jacob A.]

Good Evening BP, 

I am running numbers on a potential deal and I assumed that I would go with wisdom of the crowd to help me make a more educated decision. 

I have come across two duplex units ( 4 units total) that I believe I could get for roughly $80,000 collectively. All 4 units are in relatively good condition and minor repairs ( Under $4,000) for all rehab in all units. The average rental in this area is between $550-650 per unit per month and the majority of the properties are currently rented to section 8 housing authority. Taxes are $1500 all inclusive for both properties and insurance for both properties would run $1200 collectively annually. 

Recap:

-80K purchase price for 4 units 

- $600 per unit in rent ( $2,400 a month) 

-Expenses after Capex and loan would run $595.00

-Cash flow would be $1859 monthly

I am curious if anyone here has any input to the reliability of section 8 tenants? I have done some research into the situation and it appears that the local housing authority has strict rules for the recipients of their services. 

These propertjes will not appreciate much if at all due to the nature of the tenants. 

Would you do this deal? What worries would you have? I have not had personal experience with section 8 or housing authority properties. 

Advice and input is welcome.