Section 8 landlord
considering to buy a sectiom 8 rental townhome.
Is it worth to become a section 8 landlord? What are some of the challenges someone dealt with .
Can you kindly share ?
I've owned two properties where I have accepted section 8 - the good is that the government pays on time- guaranteed rent. Plus there are tax benefits and you truly help people who need it. The bad... there is additional paperwork and some extra oversight for property maintenance.
Quote from @Tiffany Colvert:
I've owned two properties where I have accepted section 8 - the good is that the government pays on time- guaranteed rent. Plus there are tax benefits and you truly help people who need it. The bad... there is additional paperwork and some extra oversight for property maintenance.
What are the tax benefits?
Depends on your state. At the time we were able to get a state tax credit, equal to 3 percent of the qualified amount of the property. Check with you local housing authority to see what your state may offer in terms of tax incentives.
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#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
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Your rent is guaranteed (HUD portion), but you lose control. Section 8 holds strict guidelines you have to follow.
It is definitely nice to have guaranteed monthly payments. Typically, they require an initial inspection - this is prior to the tenant moving in. They have very specific requirements/guidelines and will not allow tenants to move in unless all requirements are fulfilled.
@Maddy Lakshmanan it all depends on your strategy. You still get to screen the tenants its just HUD/ section 8 is footing the bill for some or all of the rent, and you have to follow their guidelines for that.
Find some investors in your market who do section 8 and talk to them. It is a different experience in every county/ city.
Pros: Guaranteed partial or 100% monthly payments.
Cons: Initial inspections