Would you do Sec 8 again?

[David Rosenthal]

Looking for someone who's done a lot of section 8 BRRRR deals to share some insight. I mainly flip right now, but looking to build something for the long term with a partner. STL, Detroit, and Philly seem interesting and to have solid sec 8 numbers.

The good (besides the guarantee), the bad, and the ugly?  Give it to me straight please.  If you don't mind, include the size of portfolio and avg cash flow you look for in a deal.

Thanks so much.

[Travis Biziorek]

I do a lot in Detroit.

The quick good/bad:

- S8 tenants tend to be rougher on the property (but not always)

- Paperwork/inspections/etc. can be burdensome and tough to navigate (especially initially)

- People often think FMR rates are guarantee rental rates but that's not the case

- Usually the rent isn't 100% subsidized and a lot of people don't realize this

- S8 tenants tend to stay a lot longer than cash tenants

Overall, I'm neutral on the program. If the tenant makes sense, the rent is there, and it all works for the particular property, I'll go with S8.

But I'm not the type to turn down a well qualified cash paying tenant simply because I only want S8.