Never done a Section 8 Deal, but an opportunity has surfaced

[Steve S.]

3 duplexes right in a row in a C+ / B- neighborhood.

ALready pre-approved for Section 8 at $550 per month.

All 3 duplexes for $190,000

Currently livable but have some opportunity to improve them.  4 of the 6 are currently rented.

Thoughts?  What am I not thinking about regarding section 8 that would maybe make this a bad deal?

Property has been on the market for about 150 days and has dropped in price almost $50,000. (<- seems like a giant RED flag)

[Matt Leonard]

I don’t think section 8 would make it a bad deal. Not to say that all Section 8 tenants are great, but neither are all market rent tenants. I would put in an offer subject to inspection, financing, and proof of full and timely rent payments for the past year. There is nothing inherently wrong with section 8 other than the annual inspections, which keep owners from letting their properties deteriorate. If you were planning on keeping up with it anyway, it shouldn’t be an issue. If you haven’t already, pick up The Section 8 Bible vol. 1 & 2. Great info and very entertaining!