Section 8 Housing Question

[Alexandra Preziosi]

I was surprised to learn how many people invest in Section 8 housing. Being new to the business, that would have probably been the last place on my list! In conducting further research, it seemed as though it is because rent is guaranteed monthly on rental properties in Section 8? My question is whether the reward outweighs the risk of investing in areas such as this, and if anyone has had great success in investing in Section 8. Thanks!

[Eddie T.]

@Alexandra Preziosi I personally like section but that is me I am comfortable with the tenant base and dealing with the inspections etc. It also depends on where do you plan to invest? Are you going to self manage? if so you have to be comfortable dealing with lower income tenants.

If you are truly interested in Section 8, but a copy of the Section 8 Bible Volume 1 & 2. It will give you a good understanding of the system although the methods used by the author are very extreme they have very good ideas.

As far as rent being guaranteed, it is not. Rent can be stopped for a few reasons which will not happen often but it is a possibility.

If you plan on having 2-5 properties then section 8 probably isn't the best business model for you.