Section 8 in Chicago

[Chris Scales]

I'm looking to acquire my first rental property and have come across several interesting opportunities over the last few months that have Section 8 tenants. More specifically, I walked a 3 unit property recently that appears as if it would cash flow quite well ~$250/unit after servicing mortgage (75% LTV on list price), property taxes, insurance, maintenance, utilities, trash, etc. The numbers are almost too good to be true; I've been looking at properties around Chicago for about 6 months now and haven't come across anything that comes close to cash flowing this well. The property is only about 10 years old and generally seems to be in good shape; minimal improvements would be needed outside of a fresh coat of paint, carpet in common areas and landscaping. I'm guessing this property is priced this well because most buyers are being scared away as a result of the section 8 tenants. Assuming that's the case, I wanted to ask the BP community if there are investors out there that could share their experiences as section 8 landlords - What additional work is required to be a section 8 landlord in Chicago? What resources are available to learn more? What risks are involved with section 8?