I can't loan them the $40k secured by the house because its not in their name. 

Make sure you get your security deposits when you close.  

This makes their pro-forma numbers look better on the exit.In addition to this, there are lots of incentives for new development (tax credits, grants, TIF funds, etc.), so depending on the project there could be some degree of subsidization.ROI does not take into account time/effort. 

The reason I ask is, what if you started non-renewing the Sec 8....granted you lose that "guaranteed rent" (heh, ask me about THAT sometime), but if you can get it up to market rent gradually while reducing expenses, this deal may still work.3) Cash flow & NOI are key components that determine the market value of multi-unit/commercial property. 

Granted, if no one says anything or no one challenges the deficiency, they lose but, worth clarifying nonetheless.

Grant

Grant

Would each house need its own bank account, security deposit account, and credit card in this setup?

Originally posted by @Luke Redford:Thanks @Grant Fosheim - so what are you looking for for ROI?

Exactly one half of my tenants have Section 8 Vouchers and the other not, but having an S8 Voucher does not grant any special protection or privilege.