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Updated over 5 years ago,
To Section 8 or NOT to Section 8 ?
I'm currently searching for our first investment which is proving difficult as a Cali resident who is looking to invest out of state. Out of state being my old home state in the south so I'm not completely ignorant to that area but not being "boots on the ground" makes it harder to find that cat lady or hoarder home that you purchase and rehab for 70-80% ARV. I have connected with some realtors but what gets passed on to me are pretty much the same turnkey deals I am finding on the MLS myself. With that said, I have found some nice turnkey MFH that meet the 1% rule but they are in an area that is all Section 8 tenants. The area is nice and kept up well but one downside is rents are 50-200 dollars a month less per door than the surrounding area. Im curious to how many here love or dislike section 8 from personal experience? I have heard some say they love it bc it is guaranteed payments every month while others cite destruction of property by such tenants. The landlords who say they love Section 8 rebuff the destruction of property claim citing that in their experience tenants are afraid to lose their voucher therefore do not destroy their properties. Personally I believe, not all, but most people on Section 8 are of a certain socioeconomical demographic which tend to have a different set of problem solving and coping skills in life (which can be a contributing factor to destruction of property more than others) and that in and of itself is what makes me shy away from the idea of Section 8 tenants.
Any personal experiences shared are much appreciated and valued!