Section 8: Pros and Cons?

[Cat Whipple]

I'm looking for my first investment property and am curious about Section 8 housing. I am wondering what people who have done it have to say about their experiences with it.

[Mike Mocek]

Originally posted by @Cat Whipple:

I'm looking for my first investment property and am curious about Section 8 housing. I am wondering what people who have done it have to say about their experiences with it.

Congratulations on your first investment property!  I am not sure where you are looking to invest but here in Toledo, I have found it to be a 50/50.  Regardless if they are Section 8 or self-pay, I find it most important to do a thorough background verification.  Yes making sure they have credit is important, but some of my best tenants have no credit at all.  It is extremely important to reach out to previous landlords, I verify all landlord verification by looking up the property appraiser to make sure that I am talking to the actual owner, and not just a friend.  I also require at least two previous landlord contacts, and I always tell them, do not be afraid to give me someone that may give you a bad review, every case is different.

I have been managing properties for just about 6 years, and I have owned my own properties for about 10.  I do not know everything there is about investment properties but I will say, do not judge a book by its' cover.  Still do your due-diligence and background verification.  I also find it important to see what their goal is in the future, I always ask them what they would do if they lost their voucher (What is their back up plan?).  These vouchers are subject to change if they get a job, someone else moves in etc.  The vouchers can go up and go down.  When it comes to the actual department, I find that the renewal inspectors are more harsh than when they are moving someone in.  I also do 6 month checks on the properties as well, that way if there is deferred maintenance, you are on top of it, instead of learning the hard way.

My last suggestion would be, introduce yourself to your local housing authority, see if you can meet with someone to help walk you through the process, what THEY do to qualify their clients, what THEIR expectations are of their clients and of you as well.  This will also help you be a better landlord and produce more quality in your properties!

I will be more than happy to discuss this with you further if you wish, let's connect and chat!