Property with Rent paid by the government?

[Nitish Gupta]

Hello,

I am researching to purchase my first real estate investment property. An agent suggested a property in the 70-80k$ range, currently occupied by tenants. Apparently, the renters are of low-income earners and the rent is being paid by the government, which continued to come through the entire lockdown period. Is that a good investment? The agent calculated a 13% ROI and said such properties are the best to look for as the govt will keep paying, and no need of any improvements as that will not increase rent. I would appreciate thoughts on this

[Dan Schwartz]

@Nitish Gupta learn about the government program, and if it's a) long-term and sustainable and b) you can operate within its rules, go for it.  We had a 4-plex in a low income neighborhood and sold to someone who told me he was going to put all of the tenants on a government program that would pay him double what I was collecting.  A few years later, he sold the 4-plex for about 3 times what he paid us for it.  I don't know what the program is, but it was successful for him!