Has anyone dabbled with hud?

Question

Has anyone dabbled with hud? Is it a good idea to go this route or would you have bigger cash flows renting the more traditional way?

Patti Robertson · Answer

I both own and manage properties for a total of about 85 SEC 8 leases.  I would not suggest you start your investing career with this strategy.  While it can be profitable, and is my purposeful strategy in low income neighborhoods, low income investing in general is advanced landlording.  If you don’t know how to screen tenants really well - even with a voucher - and know the best ways to insure lease compliance, you can lose a lot of money with a low income tenant. For your first rental it is far safer to spent a little more on a property where you will get a much easier tenant to manage. Once you have mastered your landlord tenant laws then move onto the more advanced strategies.  I would make an exception if you happen to have a property manager in your town who really knows SEC 8 well and you hire them to manage the process for a few years while you watch and learn.  I wrote a blog about SEC 8 investing if you want to take a look.

https://www.biggerpockets.com/...

Terrell Garren · Answer

@James Cress use the search function on section 8 my friend.  You cannot swing a dead cat on this site w/o hitting a bunch of experienced discussions and viewpoints on the topic.

John Underwood · Answer

I have 2 section 8 house and I love the program. I would convert more of my properties over to section 8 if given the opportunity.

James Cress · Answer

@John Teachout oh ok. So is it profitable to rent to section 8? Do you have to cover the utilities out of the rent payment or does the tenant cover that?

John Teachout · Answer

REO's are bank owned properties. Often these are sold by HUD, USDA or Fannie Mae.

James Cress · Answer

@John Teachout mostly renting to section 8. Im not sure what REO’s are. Im new to the whole real estate gig and trying to lay groundwork to expand my portfolio.

Has anyone dabbled with hud?

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