Section 8, pros and cons

[Jenna Lee]

I am just curious about everyones thought on section 8 rentals. 

I got interested in section 8 rentals after listening to a podcast about a guy that soley owned section 8, he said he NEVER had any late payments nor his property being vandalized the whole time he was doing section 8.

This got me very interested, and have converted one of my rental into a section 8 and it's been very pleasant. She really does a great job upkeeping the house, never have single requests and I get paid on time every month.

My question is, do you guys think having it a section 8 rental affects the property value? Does it make it less desirable for the buyer or next renter because of the stereotype associated with section 8 rental? Also, do you think this impacts the area as well, and keeps the increase of value from less likely to happen?

I know some investors are soley bases their purchases on cash flow. And I might do that if I had ALOT of money, but I can't afford to... I have to look and factor both equations. I have to make sure it cash flows and be at an area where I have some level of confidence that the value will increase relatively soon. (YES! It's not a guarantee ofcourse but....  there needs to be a good chance that it will happen soon.) 

[Patti Robertson]

I love SEC 8 and mange 85 SEC 8 leases in my PM company.  I find it hard to believe that anyone doing any volume never has a tenant pay late and never has a tenant do damage to a property.  If you property is in a low income area, you will attract low income tenants.  SEC 8 or not, someone living paycheck to paycheck can't withstand a financial bump in the road like a car that needs new tires, a reduction of hours at work, an unexpected bill, etc.  SEC 8 gives you insurance that if the tenant's income goes away you will still get paid. People ask about SEC 8 so often on BP that my fingers get tired from all the typing.  I wrote a blog with my experience and some tips and tricks to save my fingers.  Here is the link if you want to read it.

https://www.biggerpockets.com/member-blogs/9232/55313-intro-to-section-8---your-perceptions-vs-my-realities