New to real-estate investing. I was looking into section 8 in Texas because of the rent paid by HUD is high in some areas.
I did the numbers for outside of San Antonio.
The fair market rent for a 4 bedroom pays 2100 via HUD. I found a house for sale in the area for 171k. After plugging the numbers, cash flow would be 400, COC 12.5. Assuming no major problems with the home, section 8 sounds like easy money. What do you all think?
I dont know where you got your numbers, but IN San Antonio the max rent for a 4 bedroom is $1444. It will vary by city or county. I dont believe that just outside of San Antonio the rent is going to be higher. Maybe in a different big city it might be higher, but not in Pearsall or Pleasanton.
I'm only familiar with the Section 8 rates for areas within San Antonio. You are correct, it can be very lucrative. I have one investor who now has 4 houses in Sunrise that pay 1250/mo each.