Pros and Cons of Section 8 housing

[Ryan Komagome]

Hi All,

I'm new to the investment game and wanted your experts opinion. There is a property that I'm looking at that has very good calculated returns. The biggest question in doing the deal is there is currently a tenant who is under section 8 housing. The tenant has paid on time for the past 5 years and is a single adult. I know most folks recommend start fresh with your own tenant but if the tenant has a good record this would minimize vacancy. Any gotchas on dealing with section 8 tenants that I should know about?

Thanks in advance.

[Jody Roussel]

be careful to check to local regulations, for example; in Connecticut where I am you are not allowed to refuse occupancy to potential tenant based on section 8 usage. If this is the case in the state of purchase and you aquire the property in occupied status review the current lease. 

if you do not want to go through all the extra inspections and avoid sec8 you'll have to give a good reason to ask current tenant to leave, since they have rights and option to furlough rent due to covid its a risk. its all about your flexibility as an owner and landlord.

Best of luck :)