Buying a turnkey duplex for section 8?

[Duarte Marques]

Hey all, what do you think about buying a duplex turnkey for less than 100k for section 8 rental? Both 2 bdr and fair market rent on that zone is around 1200 so it would be 2400 all. It would take around 14/30 days to get section 8 approved (it's turnkey so probably it wouldn't have a problem or have minor problems, I would do an inspection first before buying) and then around 1 month to get a section 8 tenant. Then I would consider 7% vacancy reserve, 8% maint reserve and 5% capex.

[Mark Cruse]

Quote from @Michael Smythe:

@Duarte Marques S8 tenants tend to stay longer, but they also cause higher maintenance costs.

They also have problems paying their part of the rent and utilities.

So, the 10% vacancy factor should be looked at as vacancy + tenant nonperformance.

 Section 8 people are no different than anyone else aside from income levels. The problem is people dont properly screen tenants and feel its an eazy check. If you understand screening you eliminate the problems of them not paying their part or higher maintenance. If you place anyone in a regular retail rental with inept investing or management styles you will encounter those problems no matter who you rent to.