This is a lot safer but lower potential returns than the second options.

I’m in the process of searching for land in the Houston area to then build a 4-plex on it.The plan is to self-fund the purchase & construction, rent the units and cash out with a mortage.I like the idea of serving lower income families and therefore don’t shy away from section 8.This is the first time I do something like this, so I’m throwing it out there in hopes of hearing your thoughts and learning from your experience!

Although still rare, some of these duplexes are now coming with impact windows, which further lowers your insurance and increases storm protection, so this may be something else to look into.

Obviously the lower the price, the more attractive it is.

If that's your market, your only choice is to get aggressive or sit vacant.Consider lowering the price but increasing your standards.

These people did lower their price recently and actually called us again. 

So I am thinking it may be worth it for tenant retention and lowering long term maintenance costs.

A consistently higher appreciation can make up for a lower purchase price discount, but 5%+ appreciation for 5-10 years is typically not the case in markets that offer some amount of cash flow.2.  

On top of that, the tenants are lower-quality, so it takes more work to maintain communication, enforce the lease, etc.In my experience, the additional work and eventual losses erase any benefits of Section 8.

We provide smoke detectors, carbon monoxide detectors, fire extinguisher and change our air filters as needed.