The higher credit, higher income, gainfully employed S8 tenants are choosy about where they live and do not want to live in a bad, high crime area.By buying in an area that appeals to high quality S8 tenants, the arbitrage that you might see between S8 being higher than market might disappear.So that being said, it’s more important to lead by location than strategy.Happy to talk further if you like.  

It's not a bad strategy, especially if you live in a lower-priced area with a good rent-to-purchase price ratio.

I do have folks that don't book because of that.That is a good thing as not understanding the distance to get places will create bad blood and cause those 2 and 3 star reviews which no one wants to see.Like , our place isn't cheap so we don't get the folks that destroy places.The bottom line is that you are renting out an expensive asset to strangers for 3-10 days or whatever.

I don't lend on bad deals. 

but end of the day lots of Black on your balance sheet simply is not a bad thing.. 

What's the risk or cost to you if you face an eviction or a bad tenant because you used basic screening techniques? 

Old properties aren't a bad thing as long as you account for the big four- HVAC, foundation, roof and sewer.

The marginal returns drove me to seek other strategies.So, this is not a "bad" deal if you consider it more of a learning experience than one that will make you a lot of money. 

Victor is there a way where you are not made the bad person??

Two things are certain, 1) taxes are lower today than they've ever been in the past 80 years. 2) they are certain to be higher in the future.We should all be focused on paying the lowest “lifetime tax bill” not the “lowest tax bill this year”.By paying 20% and settling up my long-term capital gains is not a bad deal.