Looking to buy first duplex, but it has section 8 tenants. Avoid?

[Dakoda Spencer]

Recently a decent duplex hit the market in a local town. I scheduled a walk through and went and saw the property (I'm a licensed real estate agent). During the walk through, the tenants let me know that they are both Section 8. When I asked the seller's agent about rents, he told me and the numbers are below market value ($450 and $500). Should be closer to $650/month. The duplex is in good shape and a good part of town. It's relatively close to the local college.

My question is, since this is my first rental property, should I avoid it with the additional processes that come with Section 8 rentals? I've read that there are processes in place for attempting to raise the rent to market rent for Section 8 rentals, and that attempt can be done once a year. Regards, Dakoda

[Bob Stevens]

Quote from @Dakoda Spencer:

Recently a decent duplex hit the market in a local town. I scheduled a walk through and went and saw the property (I'm a licensed real estate agent). During the walk through, the tenants let me know that they are both Section 8. When I asked the seller's agent about rents, he told me and the numbers are below market value ($450 and $500). Should be closer to $650/month. The duplex is in good shape and a good part of town. It's relatively close to the local college.

My question is, since this is my first rental property, should I avoid it with the additional processes that come with Section 8 rentals? I've read that there are processes in place for attempting to raise the rent to market rent for Section 8 rentals, and that attempt can be done once a year. Regards, Dakoda

 Heck no, sec 8 makes it easier, they pay like clockwork. Now you will have to make sure all repairs are taken care of. Also, usually sec 8 pays MORE than a cash tenant ( in my market anyway) so you should submit the form for a rent increase.