Section 8 Investing in Los Angeles

[Stephen Shigematsu]

Just listened to an interesting episode of the Bigger Pockets podcast with @josepha and it got me thinking about investing in a section 8 rental properties in more expensive markets, particularly my hometown Los Angeles. The stigma of bad/crazy/poor/drug-using tenants has always deterred me from considering renting to those who have vouchers. But considering the way he does it sounds like a great way to reduce risk. Essentially he rehabs his properties to make them undeniably high quality (not just "good enough" for section 8) in order to generate a huge demand and thus be able to be extremely selective in his tenant screening process. 

I love the idea of being able to provide a nice home that lower-income renters can be truly proud of, and as a result (hopefully) will take care of the place. And then of course, I'll be able to enjoy the benefits of the voucher payment from the Housing Authority. 

I'm curious if anyone in the Los Angeles area has employed this strategy? With the Voucher Payment Standards in LA, I figure I'd need to find a 3 bedroom property with an ARV of around 280,000.

Would love to connect with anyone who has experience with this!!