Newbie Investor - Section 8 in Baltimore City/County

[Keenan Rusk]

Hey BP,

It's been a year since I joined and made my first post, and I feel like I've made substantial gain in my knowledge and preparation for this journey of real estate investing. I've completed The Book on Rental Property Investing (a few times I might add), listened to many of the BP podcasts, and read many of the forums related to investing in my hometown of Baltimore. Staying at home with family, I was also able to save up enough money for a sizable down payment on a property. I'm attending my first REIA meetup this week and looking forward to learning more, but I'm ready to take action and hope to purchase my first deal soon.

After researching different areas and strategies, I am looking to pursue the "BRRRR" strategy in Baltimore with C-class single-family homes (3 BR) and rent the properties to market-rate and Section 8 tenants. After studying the pros and cons of Section, the potential for good cash flow in these neighborhoods makes sense with the right team in place given the backlog of tenants, fewer properties that accept them and generally lower turnover. Areas like Dundalk, Middle River, Northwood, Hollins Market seem like good candidates.

For investors and property managers experienced with this program, 

1. Are there any significant differences between how the program is administered between Baltimore City and Baltimore County that favor one over the other? Are there better neighborhoods than the ones I've mentioned?

2. For the sake of refinancing, does renting to a Section-8 tenant have any adverse impact on determining property value (ie. is 75% LTV unrealistic for these type of properties)?

3. Given that Section 8 performs their own annual inspection of the property, how important is a "lead-free" certificate over "lead-safe"? I imagine any property requiring lead paint remediation will be expensive.

4. I read a post about some of the headaches of the program, where someone declared that HUD can withhold a voucher for payment for broken items in the home, tenant/HUD not notifying the landlord for a fix, and waiting weeks for re-inspection before payments are issued. Are these exaggerations or examples of situations that can be mitigated with the right property management in place?

I know this seems very specific for a newbie, but it's something I'm looking to refine. I am also looking to connect with real estate agents, lenders, and property managers in the area.

Keenan