BRRRR Strategy Coupled with Section 8 Tenants

[Jibreel Hameed]

Hello All,

My investment partner and I are thinking of different avenues on how to buy and hold homes in low income areas. I've seen people doing this across the country with no understanding on what incentives they are giving for others to move into neighborhoods which unfortunately may have high crime rates with unreliable and or problematic tenants/neighbors. So we started thinking of ways we could entice residents of the neighborhood to rent rehabbed homes without the fear of not being able to afford rent and the property generates guaranteed rent role without high tenant turnover or encountering high vacancy rates. So the only solution we thought about (not sure if this is a novel idea but I haven't heard too many doing it) is to rehab duplexes and triplexes and then supply the apartment to Section 8 tenants.

So the questions I have are:

1) Is this a viable solution that anyone has done before/has information on?

2) Are there certain criteria a property owner needs to meet in order to supply homes to Section 8 tenants?

3) Is there any local or state registration you need to complete in order to supply housing to these tenants?

4) Is there a minimum and or maximum amount of units you can own/provide for Section 8 housing?

5) Are there any gov't assistance programs encouraging investors to supply Section 8 housing?

I'm sure I'll have many more questions depending on the type of information I get lol. Look forward to hearing your responses!

Thanks

[Thomas S.]

I am certain there will be many that will have answers to your questions but for me the question is why would you want to waste money rehabbing for section 8. They are only likely to destroy the work you do. There social standards and social skills do not warrant "nice".

This has been tried and failed many times with investors walking away wondering how tenants can be so irresponsible and so destructive.

Section 8 ….you bring the property up to minimum required standards.