Affordable Housing Investing

[Ryan Pettit]

I am under contract on a 16 unit apartment building in a lower class neighborhood. All units are identical (2/1 with 800sf). They are renting for $500 which is under market.

I’ve learned that there is a HUGE demand for affordable housing in this market and there are only a handful of properties accepting section 8 tenants. There is a 6-12 month wait at both properties in close proximity.

Also - section 8 vouchers would allow for slightly higher gross rents and consistent occupancy.

I’m trying to connect with other multi family investors that have affordable housing units and accept vouchers. Also - wondering if there are grant programs that could offset the cost of upgrading certain units to meet the standards set forth by the Govt Agency in charge of section 8.

Thanks in advance.

[Travis Gibson]

@Ryan Pettit I have had Section 8 tenants in some of my SFH for years and they have been some of the "best" and "worst" tenants I have ever had. The thing you need to remember is just because a portion of their rent guaranteed does not mean that the tenants should not be screened with the same scrutiny as a non-Section 8 tenant. One thing I do for the SFH I still personally manage is to swing by where the applicant lives with super short notice(under the pretext of a misplaced credit application). It gives you a chance to see how the applicant treats their current rental.