Buying Section 8 Mod Rehab Properties

[Ryne Mading]

Looking to buy 1 of only ~165 multi-family (5+ units) properties in my state that was grandfathered into HUD's Section 8 Moderate Rehabilitation program from back in the 70s. Does anyone have expertise in this area? Any advice or guidance to share?

Few things: I am not a newbie to RE investing but not what I would consider 'seasoned.' I still have a full-time day job and invest on the side. Do I want to specialize in Section 8 housing? Not sure, that's why I'm coming to the BP community for some advice. The fact that the rents are fully paid by the state through this program and not the tenants is intriguing and the rents increase annually with market rents so this is not a 'rent controlled' situation. Plenty of potential upside, I want to know why I shouldn't buy this property.

Any help or thoughts on this deal would me a happy man. Thanks in advance.