Anyone have experience with Section 8?

@Marcos De la Cruz

Most of my rentals, when I first started buying in 2010, were section 8 through the housing choice voucher system in Cincinnati.  I don't have experience with Dayton, OH, but would imagine it is similar.  

When you say "section 8" tenants, are you looking at low-income housing tax credit type properties, or standard rentals that are in lower income areas and therefore cater to HCV tenants?  

For me, HCV was worth it when I started out.  But it was hands on.  I had fairly good luck with all tenants that I placed while I was self managing.  Because you can assume no Section 8 tenant has good credit, my leasing decisions had more to do with meeting each tenant myself to get a gut feeling based on their communicativeness, timeliness to showing, what questions they asked, whether they looked me in the eyes or avoided eye contact, etc.

The downside of section 8 was the annual, then bi-annual, inspections.  You are effectively turning the unit every year or two, even when the tenant stays in place.  Over the years, these mandatory repairs became more and more expensive, to the point that any rent premiums I was getting through section 8 was more than eaten up by the reinspection repairs. 

Admittedly, my properties were mostly in the path of gentrification, so overtime was moving effectively getting rid of my section 8 tenants and going with better qualified, higher rent paying market rate tenants.  But while I had my properties in section 8 it was generally fine.

Like any, if you show respect to the property and tenants, they will typically show respect to you and the property.  If you don't take care of issues, don't take care of the property, and don't keep things in good repair, you will have tenants that don't respect the property either.