Looking at low income rental portfolio

[Jordan Maroules]

I am looking at buying an investors portfolio that contains around 40 units.   They are all single family homes that rent for around $500.00.  Its low income stuff and a 5 of them are section 8 housing.  The cap rate is is over 10%.  It meets the 1% rule from the outside looking in.  I am sure there will be repairs and maintenance as the homes were built in the late 50's and early 60's.   I own a few rentals now, but this would really stimulate my rentals and I would put in a admin and a maintenance guy.  With these 40 units it would give me around 60 total rentals.  Anyone have any advice?

[Danny Randazzo]

@Jordan Maroules have you figure out how much maintenance or management will be required? Typically low income housing require a lot more management versus average priced rental units in the region. You should think about your vision for the portfolio too. If you would like some appreciation, low income areas don't appreciate as much as the average priced homes in the area. If the low income area is on the "rise", ask agents or investors who own in that neighborhood how long it's been waiting to appreciate. Good luck.