New to real estate investing: section 8 guidance

Member since 2025 · 5 posts · 1 vote

So I'm completely new to real estate and after almost a year of researching I've decided section 8 is the route I want to go. I live in Nashville, TN, but I am looking to purchase a property in Birmingham, AL to rent out. I have capital to make a purchase but I don't know anyone with experience in this industry. What are some tips I can use to help me on this specific journey and is there any way for me to find a mentor or someone who can help guide me in the right direction?

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Tom S.

Real Estate Investor · Burlington, VT · Member since 2010 · 2k+ posts · 1k+ votes

@Lance Williams Congrats on starting out! I have a few Section 8 tenants and generally it has been a good experience. The money is guaranteed (at that most of it, usually the tenant has to pay a small portion).

I've found the tenants to be slightly more high maintenance and a bit tougher on the property. No damage, but messy.

I used to rent to college students and found it to be somewhat the same: usually guaranteed income (parents would pay) but messy with beer cans all over the yard.

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Jaycee GreenePro Member
Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
1y
Quote from @Lance Williams:

So I'm completely new to real estate and after almost a year of researching I've decided section 8 is the route I want to go. I live in Nashville, TN, but I am looking to purchase a property in Birmingham, AL to rent out. I have capital to make a purchase but I don't know anyone with experience in this industry. What are some tips I can use to help me on this specific journey and is there any way for me to find a mentor or someone who can help guide me in the right direction?

Hey @Lance Williams, welcome to the BP Forum! Can you share more details as to why you believe S8 is the route you want to go? Price point? Tenant pool? Appreciation potential? High ROI?
What is your price range/down payment amount? Are you looking for turn-key properties or something along the lines of a "fixer upper"?
[email protected]
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- Lance Williams
  OP
  Member since 2025 · 5 posts · 1 vote
  1y
  @Jaycee Greene I believe S8 is the route I want to go due to the consistent cash flow and high demand. My price range/down payment amount is $100,000 or less with a 10 to 20% down payment amount. I would prefer a turn-key property but willing to assess lower risk "fixer uppers" with potential.
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- Jaycee GreenePro Member
  Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
  1y
  Quote from @Lance Williams:
  
  @Jaycee Greene I believe S8 is the route I want to go due to the consistent cash flow and high demand. My price range/down payment amount is $100,000 or less with a 10 to 20% down payment amount. I would prefer a turn-key property but willing to assess lower risk "fixer uppers" with potential.
  
  @Lance Williams So, something like this: 728 41st St, Fairfield, AL 35064?
  [email protected]
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- Lance Williams
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  Member since 2025 · 5 posts · 1 vote
  1y
  @Jaycee Greene Yes sir something like that or similar.
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- Jaycee GreenePro Member
  Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
  1y
  Quote from @Lance Williams:
  
  @Jaycee Greene Yes sir something like that or similar.
  
  @Lance Williams For a local investor/contact in Bham, I'd recommend you connect with @Shane Dreffs. Do you know how you're planning to fund/finance the property?
  [email protected]
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Tom S.
Real Estate Investor · Burlington, VT · Member since 2010 · 2k+ posts · 1k+ votes
1y

@Lance Williams Congrats on starting out! I have a few Section 8 tenants and generally it has been a good experience. The money is guaranteed (at that most of it, usually the tenant has to pay a small portion).
I've found the tenants to be slightly more high maintenance and a bit tougher on the property. No damage, but messy.
I used to rent to college students and found it to be somewhat the same: usually guaranteed income (parents would pay) but messy with beer cans all over the yard.
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Andreas MuellerBusiness Member
Real Estate Agent · Nashville, TN · Member since 2019 · 407 posts · 181 votes
1y
Sadly I've had several S8 tenants who lost their voucher and then wouldn't move (or pay rent) so we had to evict. It's great in some cities like DC where they pay way above market rent but here , not so much. And the number of vouchers they give out is highly limited in TN, the state government doesn't put as much money in it as other states. Hell they even pay all utilities and SD in other States. I have a few tenants who want to get the voucher but cant, no money left to fund the program for the year.

In TN I dont recommend, very unfortunate.
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