Is there really a new gov't program?

Question

I was recently contacted by a friend who wants me to come into a deal with him which was showed him by his real estate agent.

The agent is telling him there is a program where he can invest $300k buying 3 $100k SFH's and the gov't will put 3 elderly people in each house, paying $800 per tenant per month equaling $2400 in rent per house per month.

This sounds fishy to me because market rent in the area discussed is generally around $700/month per SFH.

Is there a new gov't program I don't know about or is she teaching him about section 8?

Michael Ramzy · Answer

I see this happening in Canada too, but there has to be a license in place. That is the license for meeting safety, requirements for providing assistive living...etc. Usually, very profitable and once you're licensed, you get higher higher housing fees than what the resident/senior can pay on their own sometimes. Once licensed too, you can go for more homes.

Lundy Lundmark · Answer

I'm not an expert in this but trying to educate myself on this concept. I have heard other investors  doing just this.. it falls under home care thing.. other investors have put 4 different elderly people  in a large 5 bed home and having a full time care giver on site and Medicare helps pay for that type of leaving. If anyone has any other input on this, would love to hear it..

Jackie Perkins · Answer

I am interested in knowing more about this program.  We have several rental that are SFH that are Section 8.  Having several people living in one home would be even better.

Daniel Mohnkern · Answer

Okay, that sounds more legitimate than I was thinking it was.  Thank you for the input.  I'll definitely have to do more investigating.  It might be a profitable endeavor if that's the case.

Daniel Mohnkern · Answer

@Lonnie Pickard , thanks for the response.  That's what I was thinking too except that he insists she was specifically mentioning 3 elderly people sharing a SFH rather than a multi unit.  That particular variable seemed like something all together different.

Does anyone know if this is something only in Pennsylvania?

Lonnie Pickard · Answer

@Daniel Mohnkern  Sounds like Sec. 8 to me.

Is there really a new gov't program?

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