Turnkey section 8 rental

[Matthew Brill]

Investment Info:

Single-family residence buy & hold investment in Jackson.

Purchase price: $110,000
Cash invested: $24,500

Turnkey Property.
4 bed, 2 bath 1572 sq ft
Section 8 rental
Pro forma cash flow was $135/month with CoC 6.6%. After getting a signed lease, estimated monthly cash flow minus reserves is $434/month, CoC 21%!

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

Cash flowing property to balance my portfolio out against other higher value, lower cash flow properties.

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

Found a turnkey operator I liked, followed their deals for a few months until I found one that meet my criteria. No negotiation.

How did you finance this deal?

Conventional Financing

How did you add value to the deal?

Non value add

What was the outcome?

Still renting.

Lessons learned? Challenges?

Have had some issues with the property manager that I'm still working through. There were more maintenance issues at the beginning than I thought was reasonable for a large renovation. And not the best communication from the PM.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I found the turnkey provider through a marketer, Jason Hartman.

[Matthew Brill]

Hey @Will Fraser. The property I chose was a large rehab; all major systems replaced, floors, and cosmetics. After finishing, they took their time to get a tenant in and then 3 months later COVID lockdowns hit and Section 8 office closed which cost me another 2 months vacancy. After a tenant moved in, there were another $2000 of repairs that I thought should have been taken care of in the initial rehab. I did eventually get them to reimburse me those expenses, but the communication has been sub par and there has still been more expenses since then.