Section 8 - What am i missing?

[Adam Eckhoff]

Good Afternoon BP's,

Two-bedroom, Single-family house, listed for $110,000 (rounded), with an estimated mortgage of $680 (rounded). According to Huduser, a Section 8, two-bedroom unit would rent for $1,250 (rounded). QUESTION 1: Would you consider this a good investment; purchasing a renovated SFH, section 8 it, and utilize a management company? QUESTION 2: What are some basic "ideas/thoughts" that i should consider?

https://www.realtor.com/realestateandhomes-detail/5310-Norle...

Thanks,

Adam. 

Final FY 2024 & Final FY 2023 FMRs By Unit Bedrooms
Year	Efficiency	One-Bedroom	Two-Bedroom	Three-Bedroom	Four-Bedroom
FY 2024 FMR	$985	$1,098	$1,258	$1,645	$1,931
FY 2023 FMR	$885	$1,002	$1,164	$1,530	$1,777

[Nicholas L.]

@Adam Eckhoff

well... there is lots that can go wrong.  the main problem is that out of state investors like yourself just aren't familiar enough with either (1) the neighborhoods, or (2) the properties.  so they 'hear' a neighborhood is good, and then they 'hear' a property is OK, and they think they can rely on what they heard.  but once you close, it's all on you - no one is taking responsibility for anything.  no one is going to compensate you for anything.  no one is going to go back and fix or redo anything.

more repairs than you thought? that's on you.  worse neighborhood than you thought? that's on you.  can't get the rent you thought (or were 'promised'?) that's on you.  first tenant ruins the carpet and breaks windows and your property manager sends you a $6K bill 7 months in?  that's on you.  furnace was fine when it was inspected and then breaks?  That's on you.

@Caleb Brown does know the market... and he noted it's 'hit or miss.'  and brand new out of state investors are going to miss.

just trying to be frank with you.  i'd try to pick a market closer to you where you can  be hands on.