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Friend of mine did this, owned a triple decker with two S8 apartments. One had to pay $25 for rent OOP and they had to be chased down every month for that $25 and would fight to pay it.
My FIL did a bit. He bought when things were cheaper. Generally has been positive but has had a handful of tenant horror stories that cost a lot of financial and mental load.
Curious to hear other experiences
Visual Storyteller
F - also additional question. In lower-income areas where S8 is likely common, wouldn’t you face similar risk of non-payment/headaches of tenants without the voucher?
i.e. anyone can be an idiot in that area, but S8 atleast gives a guarantee?
A tenant with a voucher can choose any property. The voucher is not the same as a property being designated as “section 8 property.”
Section 8 isn’t property specific. Someone with a housing choice voucher can apply on any home that meets the criteria of their voucher. The owner/manager can decide whether they accept vouchers or not. In some areas they must be accepted.
Not sure why they would make investment more feasible though. You lower some of the bad debt risk but the vouchers won’t pay more than market rent and there is additional effort involved in managing the housing authority relationship, coordinating inspections and resulting repairs, etc.
You can decline on credit score to avoid S8. My minimum requirements are 3x rent and 600+ credit.
Stay away from S8. Nightmares
Tenants for low income housing could be a nightmare. Low income housing also does not have the same return on an investment due to property restrictions and tenant restrictions. You are need to more research h based on the state you live in.
Run!
If you're looking for a great community to learn about crypto and real estate, l'd recommend checking out Fintech Catalysts community on Telegram with this link https://t.me/+4-eRE_FrotllZjUx . cuz it's full of experienced users and investors who share insightful posts and articles.
They also discuss what's happening in the crypto world.
Don't worry, you'll find plenty of valuable discussions there. Plus, the community is super welcoming and fun! I joined two months ago, and it's been super helpful!
Once they’re in, it’s hard to get them out for any reason. It was great during Covid cause it was guaranteed rent. I’ve never had an issue with rent being paid. Mine have tended to be a little mentally unstable, which is not always fun to deal with.
The guarantee is just for the rent (or portion of). No guarantee when they distort the properties and take doors/floor when they move out. Also you are liable for anything they do to other properties as well.