Section 8 investing issues

[Alex Ng]

I've been looking to dive into the section 8 niche. Im looking to build a cashflow foundation. The issues I have is the chances of a problematic tenant. Would diligently screening them limit the risks of tenants damaging the property? Another thing i heard is the houses are older so once they move out, I'd have to spend 10-15k to rent to new tenants and all the cashflow I've made before goes away. Could an experienced s8 investor shed some light? Can I personally message someone.

[Sam Applegate]

@Alex Ng

This is an interesting business model, and I don’t think having Section 8 tenants automatically means more issues. I actually have Section 8 tenants who are great—no turnover, and they always pay rent on time.

What really matters is the quality of the place you’re offering. If you’re providing low-income housing and the property is rundown, tenants might not take great care of it. But if the property is clean and well-kept—even if it’s nothing fancy—people are more likely to respect and take care of it. Section 8 tenants often don’t have nice places to live. So when you provide that option to them, they're more likely to treat it well.