Section 8 in Hartford CT.

[Kash Chau]

Hi, I'm in the process of purchasing my 2nd property. It's a 3 family, 4BR ea. Rent is 1150ea, numbers look very good. All tenants are section8. The property need minor TLC and I am willing to do the repairs. I was in the process of obtaining a mortgage, when I received an email from the seller informing that there was a water leak on the 3rd floor which effected all tenants. All tenants had to be temporary relocated. Few weeks later i received another email stating that 2 out of the three tenants are moving out! I'm in a panic now. I know i will not be able to rent this property to anyone other then section8. I have minimal experience with section8. how hard is it to obtain new s8 tenants? Can i add a clause to the contract that all units are to be occupied? Should I try to back out of the contract? Any advice would be helpful. Thank you.

[Michael Totman]

I've dealt with a number of section 8 tenants not too far from you in MA.  Other than having a completely different outlook on money, personal finances, and who is responsible for funding their lifestyle they are no different than anyone else. Screen them well.  You should be able to talk with past landlords as a reference.  I require they come up with a security deposit and if they can do that then I assume they have at least some sense of responsibility.  I don't target them exclusively, but I don't screen them out automatically either (it would be illegal anyway) if they apply for a unit.  If you are targeting them then choose your rehab materials and projects carefully; choose materials that are tough to damage and that you won't mind replacing every time it turns over.  

To directly answer your questions:

Section 8 tenants are incredibly easy to find, just put out a free ad in the area. Screening them, however, is a different story. 

You can try to add a clause that it must be rented at closing, but I'm not sure how that will go over with any seller.  Good luck.

Make sure you inspect the repairs and any permits before you close. 

I don't believe you should back out if the numbers work.  You must have realized when you decided to buy that eventually some tenants would move out, yet the deal still made sense.  You just need to do some additional work now instead of later.