SECTION 8 QUESTIONS (PANAMA CITY, FLORIDA)

[Cain McNeil]

I AM A BANKER AND PART TIME REAL ESTATE INVESTOR, LOOKING TO GROW MY REAL ESTATE BUSINESS TO A POINT THAT I MAY TRANSITION TO BEING A FULL TIME INVESTOR.

MY DUPLEX (TOPIC OF THIS THREAD) WAS PURCHASED THIS YEAR FOR $105,000 WITH EACH SIDE BEING RENTED FOR $650. THE CURRENT TENANTS ARE GREAT SO FAR, HOWEVER I HAVE BEEN RESEARCHING SECTION 8 INFO AND FOUND A HUD CHART ONLINE THAT SAYS EACH SIDE OF MY DUPLEX (2 BR 1 BATH EACH) COULD BE RENTED FOR $881 IF I WERE TO MAKE IT A SECTION 8 PROPERTY. THIS WOULD MAKE FOR A 20-21% CASH ON CASH RETURN AND IN SPEAKING TO OTHER INVESTORS I HAVE HEARD THAT SECTION 8 TENANTS ARE EASIER TO MANAGE DUE TO DIRECTLY DEPOSITED RENT FROM THE GOVERNMENT AND THE FACT THAT THEY HAVE INCENTIVE TO "PLAY BY THE RULES" CONSIDERING THEY CAN LOSE THEIR VOUCHER IF EVICTED.

I WOULD LIKE SOME FEED BACK ON HOW CONCRETE THE HUD WEBSITE IS. IF IT SAYS "FAIR MARKET RENT FOR A 2BR IN MY AREA IS 881" IS IT REASONABLE TO ASSUME THATS WHAT WE WOULD BE PAYED PER SIDE IF WE DID MAKE THE PROPERTY SECTION 8?

ANY EXTRA INFORMATION WOULD BE APPRECIATED AS WELL.

THANK YOU!