Organizational Delays: Section 8 offices are often overworked and understaffed, leading to slow processing times for new tenants, delayed rent increase approvals, and poor responsiveness.Benefits of Section 8:1.Long-Term Tenants: When you get a good tenant, they usually stay for a long time because of the tedious process required to qualify for Section 8 housing.2.Consistent Income: If Section 8 covers most or all of the rent, you typically receive reliable monthly payments, reducing the risk of non-payment (as long as there isn’t a large tenant portion).3.Lower Barrier to Entry: Because properties in these areas are often more affordable, it’s a good way for new investors to break into real estate without needing a large amount of capital.Overall, I’ve seen the good and the bad of this strategy.

that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

It’s a great way to lower your living expenses while gaining experience as a landlord.

A smaller valuation would mean less out of pocket to buy out your siblings and lower taxes, but it would also mean the lot rent is a much higher % of valuation.I can almost guarantee you can find properties in Grand Rapids that cashflow because I've found them all over the Midwest. 

Many of the recipients are single mothers who actually want to find stable housing for themselves and their children so initially they are looking for the best house they can find and it is only when time is running out and their voucher is expiring (Yes that is a thing) that they begin lowering their standards and will settle for a cheaply put together home. 

If you’re looking for short-term cash flow, you might need to explore nearby markets with lower entry costs and higher cash-on-cash returns, even if they aren’t as familiar to you.

From what I've read so far on these forums, don't start out investing in C- or lower blocks. 

It's an awesome way to jump into RE yes its scary at first but as long as you have a criteria going in it eases some of the emotions during the process my biggest thing was lower my cost or keeping it the same.

Lower interest rate at 12% is $8,400 year ($42K for 5 years) plus his initial investment of $70K equals $112K.

I think it was Airbnb that had suggestions for me to lower my pricing because they were scanning the competition (Booking.com in that scenario) and saw a lower price.