Buying a property with a section 8 tenant in place

[Stefan D.]

I'm looking at a four bedroom SFR that has sat for a while, with a price reduction. Seems like it could be a great deal, what's the catch? It has a section 8 tenant paying far below market rates: $702 per month, when rent should be $1000.

It seems like it could be a great opportunity: Let the Section 8 tenant's lease expire, then raise rent (Either continue with section 8, or leave that program).  

BP community, please enlighten me: What could go wrong?

[David de Luna]

Don't plan on evicting the tenant just yet. Once you find out why the rent is so low (Section 8 pays market rent - if the owner asks for it) you'll know what to do. Might be the best tenant you'll have if you find out you can get it to market, assuming actual market is what you're hoping for.