Buying Rentals For Section 8 A Good Idea?

Question

Hi, I'm newer to the real estate investing world and wondering if buying lower cost houses and getting them into the Section 8 program is still doable? What are the pros and cons? I'm of course concerned about the quality of tenants and I know inspections can be difficult but wondering if there are management companies who only do this and if it can still be a profitable way to invest. Thanks!

Bob S. · Answer

Not only is it doable it seems to be a trend lol. I get props all the time in decent areas for 85k all in , rents from 1100- 1400.

All the best

Chris Mullinax · Answer

Hi Brian! We work with a lot of Section 8 rentals, and would be happy to have a conversation with you to share our insight. Feel free to shoot me a message and we can chat.

Brian Merzlock · Answer

I recommend reviewing section 8 requirements and make sure you are prepared for the requirements.

AJ Exner · Answer

Hey Brian,

Absolutely, there are a TON of people doing this right now as it gives you the ability to still employ a BRRRR-strategy with low cost housing stock, get it rent ready without "too much" rehab (comparatively speaking), and get a stabilized income to rent out in that area.

Highly recommend a PM that is aware of the ups and downs though. The potential for cash flow is certainly there, so you just don't want to get caught up with a bad few. Let the professionals handle that.

The thing to certainly be aware of is, when you are financing, be aware of property price minimums that many lenders might have. If you are working in that space, you might run into loan/property minimums that could slow you down. Make sure that any lender that you might use is aware of your strategy and isn't surprised when you find a good property for less than $50k.

Brian Willie · Answer

Hi Chris, let's connect!

Brian Willie · Answer

Hey Bob would love to connect!

Cade Edwards · Answer

@Brian Willie Typically the biggest hurdle you will have is the renovations that are needed to be done and finding good quality residents. At the end of the day it doesn't matter how much cash flow you're making if you're constantly having move outs and vacancies. With that also comes move out costs to get the property back to move in ready. However, it usually just depends on the area you're looking to invest in. Let me know if you have any questions or need any additional information.

Bob S. · Answer

I know how as I have done 100s and 100s of move in and outs, But yes I use PM ,

Brian Willie · Answer

Nice to hear thanks @Bob Stevens. Tenants decent? Do you use a management company that understands how to run these?

Buying Rentals For Section 8 A Good Idea?

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