Is Section 8 a sustainable business during a pandemic??

[Jomar Edwin Benoit]

In light of the pandemic, what are your thoughts on the sustainability of the Section 8 Business on the south side? I have realized it is quite difficult to get in contact with the CHA or HACC at this time. Any advice on how to get in contact with them?

[Edward Liu]

Although sec 8 offers rent stability, there are many downsides to sec 8 also.   Please do your research carefully.   

- My worst investment is a 12 unit building full of sec 8 when I brought it.  There were so much damage to the building as each unit moves out, water pipe in the basement was cut and stolen, so bad that I kicked everyone out and did remodel (convert to smaller units) and tailor the building now to higher end clients.   

- One of my better investment is 35 unit with mostly sec 8 tenants, where I sold and tripled my cash in about 2 years.   

- Funny things is above 2 buildings were within 10 min walking distance and managed by the same property manager.   

My suggestion is avoid sec 8 tenants with lots of kids (especially teens).  When bunch of them in the same building, bad things occur.   For SFHs, I also have few sec 8 tenants.  Those are mostly trouble free.