Cash out Refi on Sec 8 property

[Roxana Ruiz]

I entered into a jv to fix and flip a 4 unit rental property in the Chatham neighborhood of Chicago.  The property didn't move so we shifted strategies and are now planning to rent and refi.  We plan to rent to sec 8 tenants.  I recently learned that this may be a hurdle for us if we plan a cash out refi.  Has anyone else ran into this situation?  I only heard it from one lender so maybe it's not that big of an issue.  Love to hear more on this topic for the community, before we move forward renting to Sec 8.