Convert to section 8

[Dan Weber]

Hello, we are an Investor in a 260 unit older multi family complex in the Atlanta area. The plan was to upgrade 10 units at a time and increase rents after that. But the problem is and was that a lot of tenants are not paying rent and very hard to get them out (almost impossible). I am learning more and more about section 8 and wonder if it would be a good strategy to convert the project to that as I checked the zip code and what you get for 1 and 2 bedroom apartments is much more than what we are getting at the moment. 
Has anyone done that and any experience in it (also in other states etc.)?

Thanks 

[Justin Moy]

@Dan Weber It might, section 8 has it's pros and cons. The pros are you know you'll get paid and usually you get paid a higher rate than market rents. 

The cons are it's difficult to navigate the inspections (at least in the county we were in) and you're dealing with a class of tenant that is traditionally more difficult. There's a reason it pays more than market. 

As far as getting non pays out, definitely have to be very strict on that. Our PMs are told the day they're late we post notices. In some markets or some tenant bases they always like to push the limits. 

If push comes to shove I'm not above offering cash for keys to cycle out a bad tenant and get the unit ready for a good one.