Does anyone have any resources to learn more about Section 8 housing and the pros, cons & legal to be aware of? Also does anyone have experience investing in section 8? what was you experience?
@Matt Rubin - Go sit down and talk with your local Section 8 housing rep. Some also put on seminars for landlords throughout the area. The two REIA I was part of in NC had the housing authority come out and give a presentation on Section 8, it was extremely helpful.
When I was in affordable housing, I started to delve into Section 8. I had 3 or 4 units converted to Section 8 tenants before I sold. I found it was great as in Durham, NC, there was a shortage of approved housing. At the time they had something like 2,500 units approved for section 8 and around 2,800 clients approved for vouchers. This created a great demand. I found section 8 would pay higher than market rate. There were a few hurtles to getting started, and getting registered in their system and getting the first unit approved was a long drawn out nightmare. Once I was in, and understood their system, I found the little extra work was worth the guaranteed check.
I also had a friend, and fellow real estate investor who built his whole business around section 8. He bought a dozen duplexes, put them all as section 8 and made a killing. He found he has very little turn over as in that area there was such a good demand for quality units, the tenants didn't want to move and go through getting a new voucher. He liked the higher than market rates and the automatic deposit of rent to his bank account. He swears by section 8.
Let me know if you have any other questions!