Section 8

[Fawaz Alkhaleefah]

Are section 8 properties profitable for landlords? Is there any risk for section 8 tenants? Cause im foreign investor and some friends recommended section 8 property for me . Please advise And thanks in advance.

[David Krulac]

Section 8 can be very profitable.  There were 2 guys in Philadelphia named Michael McLean and Nick Cipriano, who wrote the book "Section 8 Bible".  they bought like 1,300 houses, keep them for years, then sold at a big profit at peak of market.  then later bought 1,300 more.

There are rules with Section 8 and there are yearly inspections by Section 8.  Two types of tenants that we've rented to successfully in the program were single moms with kids who had full time lower paying jobs.  One worked for the state as a receptionist, another was an LPN (nurse).  another tenant type that we rented to under the program were senior or disabled single people, typically living on Social Security or disability.

We never had a problem filling units when we put "SECTION 8 OK" in our ads.  Lots of applicant competition and you get to pick the best.