Working with section 8 tenants

[Darren Jordan]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $147,000
Cash invested: $40,224

Nice 3 bedroom / bath house located in a large older neighborhood in North Spring Texas.

What made you interested in investing in this type of deal?

Spring's job creation is growing faster than other areas around Houston and the appreciation rate over the last couple years has been averaging 9 - 10%.

How did you find this deal and how did you negotiate it?

Found on HAR MLS. We found out the seller had a buyer fall through just a couple days before actual close deadline due to financing issues so we leveraged that by insisting we'd be able to close with no issues. Our initial offer was 10k below asking we ended up settling at 5k below asking.

How did you finance this deal?

20% Down, Conventional Loan

How did you add value to the deal?

The house had recently been renovated with new carpet and granite counter tops. We did add some high end appliances but not much more was needed.

What was the outcome?

We made the house available to section 8 tenants and quickly found a tenant to move in.

Lessons learned? Challenges?

Be patient with section 8 applicants, had numerous inquiries and appointments set up but when it came time for them to come see the property a majority of them would go silent or not show up for the appointment.

[Tamara Deering]

@Patti Robertson
Thank you so much.  I will definitely read your post.  I appreciate you taking the time to put it together.

@Darren Jordan Thank you, I appreciate you telling me about your experience with Section 8, you Zillow experience is empirical evidence to support my business model, now I just have to get a deal and go forward.