Opinions on next investment

[Amanda Eyler]

My husband and I both has full time income from our employers. We currently have two student rentals where he attended school, a single family home and currently purchasing a a duplex in Augusta Maine. We still have equity within another home to pull for another investment.

I am currently looking into two options. A 5 unit in Augusta that has been well kept, low turnover and vacancy rate and comes in between the "1% and 2% rule. No current tenants receiving section 8.

Another property is in a small up and coming hot area in Midcoast Maine. This property is a 4 unit that is just at 1% income of the asking price. Currently occupied with tenants on section 8. The property has so much potential if we would eventually renovate and fill the unit with responsible tenants. We certainly had a less than welcoming feel during our walk through but saw a ton of potential for the future and a positive cash flow for now. This property also has a low vacancy and turnover rate. There is a housing shortage in this area so when space becomes available there is typically a lot of applicants. 

Section 8 makes me nervous because I simply know nothing about maintaining a property occupied by tenants receiving section 8. I would love to hear personal opinions and resources for me to obtain more information. Any and all feedback is greatly appreciated!