I have a possible seller financing deal in Indianapolis that the numbers look great for. Purchase price is in the $40k range and the property is rented for $815/mo. However, the tenants are Section 8. I don't have a problem renting to Section 8 tenants, but I was wondering if this would cause any issues being a governmental program and a seller financing deal. Any thoughts?
Nope, it shouldn't. The only thing that you should take care to do is update the PHA of the sale once you near closing to ensure they have payment information for you and can begin issuing you the check.
Thanks for the response! I didn't think it would be just wanted to be sure. Appreciate it.
Correct, the purchase financing has nothing to do with Sec 8 so long as that tenant is not involved in the purchase. Sec 8 can not be used to purchase a property by a tenant except under specific terms allowed by HUD, and that program is one of the "on again, off again" which is probably "off again" today. Doing a deal using Sec 8 is a felony matter for the seller/landlord. Great to hear you have no issues with renting under Sec 8 and great suggestion in giving the administrator or PHA a heads up as to settlement. You may also include rents received after settlement being payable to you or credit rents at settlement as Sec 8 will have cutoffs for disbursements mailed out, depends on when you close. Might call and see what the deadline is and coordinate that matter now. Good luck :)
Thanks for chiming in as well! Will definitely have to give the PHA a heads up from the sounds of it. Good to know. Thank you!
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