Cash out refi w/ Sec 8 - this a problem?

[Ian Gilligan]

Hi all, 

I'm in escrow on my first deal, a 4br house, that is looking like it will be a very solid BRRRR. I'm leaning towards getting a Section 8 tenant so I can get the rents to make the numbers work really well. (There's a shortage of 4br houses for Sec 8 in my market) Deal would probably work w/ market rents from a "regular" tenant, but would make the deal a bit thin.

Question is: has anyone had issues on the cash out refi, when the lender learns that the house is rented to a Section 8 tenant?

Appreciate your time,

[Patti Robertson]

I don’t generally pull cash out, but I have refi’d many rentals with SEC 8 tenants in them with no issues.