How Much Rehab for New Section 8 SFRs

[Rob Barry]

So I've found an off-market deal for a block of five c-class properties in Georgia at 10% below market, a few of which are currently in Section 8. Three will be leased and in good good shape when the deal closes, two vacant and in need of repairs, which will bring the all-in cost, including rehab, to just a hair under market value. Even still, the portfolio will cashflow between 14.5% and 16.7% by my calculations, which is a "Hell Yes" to me.

My intention is to make this my Section 8 block and get them all in the program. My question is - would you invest a bit more up front into more durable synthetic flooring, industrial paint, epoxy-coated showers etc.? It's my first foray into Section 8 and you hear the stories about tenants tearing out the walls... Or is it best to keep rehab pretty basic and cost-conscious? 

Curious what others have done.